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Australian Economy
This Week in AsiaEconomics

Australian supply chain chaos that fuelled supermarket shortages creeps into exports to Hong Kong

  • Canberra moved to ease Covid-induced labour shortages that upended domestic food supplies. But the problem is starting to spread to Australia’s exports to Asia
  • Singapore’s situation is stable but delays are growing in mainland China and Hong Kong

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Shipping containers sit stacked at the Port of Brisbane, Australia. Photo: Bloomberg
Su-Lin Tan

Hong Kong premium meat importer Food Square Hong Kong is facing a two-week delay in getting some of its well-loved Australian meat into town.

The business, which also has to stock up its new grocery outlet at Hong Kong’s food and shopping mecca, Central Market, says while cargoes of meat are trickling in, delays are mounting due to a labour shortage in the logistics supply chain down under as Covid-19 outbreaks – mostly Omicron – send workers into isolation.

The delays could worsen if supply chains in Australia are not restored, potentially impacting consumers in import-dependent places like Hong Kong, Food Square’s chief executive Angelo McDonnell said.
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“Previously we were talking about a two-week delay. Going forward it will be a challenge, as Hong Kong is reliant on food imports. It’s important to get it sorted as soon as possible,” he said.

“Absolutely, business will be affected but it’s also about taking care of our loyal clients. However, [it’s] sad to say everyone will be facing the same situation.”

A traffic control manager at a temporarily closed drive-through Covid-19 testing site in Canberra, Australia. Photo: EPA
A traffic control manager at a temporarily closed drive-through Covid-19 testing site in Canberra, Australia. Photo: EPA

Upended

The rising number of Covid-19 cases in Australia in recent weeks has upended the country’s supply chain and the problem is spreading slowly into exports into Asia and other places.
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