Recent US policy changes have reduced air cargo from China to the US by at least 25%, prompting supply chain adjustments, including increased routing through Hong Kong from India and Southeast Asia.

Hong Kong's strategic location makes it a vital global logistics hub, allowing Cathay Pacific to quickly reroute cargo during trade tensions and disruptions.

Although air cargo accounts for less than 1% of global goods by weight, it represents about 35% of the total value, transporting high-value items like smartphones, pharmaceuticals, luxury cars, and industrial equipment.

The COVID-19 pandemic underscored the importance of cargo flexibility, with airlines converting passenger planes into freighters to maintain operations during global shutdowns.

Cathay Pacific's cargo hub at Hong Kong International Airport is the world's busiest, handling over 1.7 million tonnes annually and serving as a real-time indicator of the global economy.

Cathay Pacific's business model, which owns its planes rather than manufacturing goods, provides high agility in route adjustments and responding swiftly to market changes and tariffs, offering a competitive edge.

In today’s climate of geopolitical tension and trade policy uncertainty, airlines like Cathay emphasize the need for adaptive strategies and quick decision-making to navigate ongoing disruptions.

The activity at Hong Kong's hub is sensitive to weather events and geopolitical shifts, with recent disruptions caused by Super Typhoon Ragasa and US trade policy changes, such as the removal of de minimis exemptions affecting Chinese imports.