Decision makers at OOCL have expressed growing concerns over the impact on the global supply chain as a result of the US-China trade war to date.
"The latest round of tariffs covers a much wider spectrum of consumer goods and will certainly impact many supply chains," said OOCL's Hong Kong director of trades Stephen Ng.
"Any assumption that supply chains will be flexible enough to move on such short notice is incredibly misplaced. Supply chains, particularly ones that involve multiple jurisdictions, are very complex and takes time to develop," he said.
"Depending on the product, factors such as production scale, skilled labour, costs, equipment and local regulations cannot be easily moved or fall under your control when moving supply chains to another country," he said.
Mr Ng also told the Hong Kong Shipping Gazette that China has been the world's factory for a long time, and in that time it has developed ways and means to make itself the best at what it does.
"The commercial decision to make a move from China is very difficult because there are simply not that many places that are as competitive. At this early stage, the container shipping industry will have to keep watch of how trade patterns may be affected and work closely with the customers to better understand their situation and strategic direction forward, which may or may not have any significant impact on the logistics industry in Hong Kong and the Pearl River Delta Region," he said.
Sources:schednet
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