Food prices in Hong Kong set to fall as truck drivers allowed to enter China to pick up deliveries

HONG KONG: Residents of Hong Kong may be able to get cheaper food at markets and restaurants soon as truckers are once again allowed to drive into mainland China to pick up deliveries.

Under the new arrangement which started on Monday (Dec 12), drivers can proceed with their journeys with proof of a negative COVID-19 test. Previously, truck drivers from the city could not enter the mainland, and had to instead hand over their vehicles to their mainland colleagues at the border.

It meant truckers had to spend hours disinfecting their vehicles before the handovers, adding to import costs which were eventually passed down to consumers.

There will also be no quota on the number of drivers allowed in.

This easing of rules for the truck drivers comes as Beijing relaxes its COVID-19 regulations, and has raised hopes that cross-border travel between the territory and the mainland may resume soon.

HIGHER COSTS

Earlier this year, truck drivers were still allowed to cross over to the mainland, but were subjected to long quarantine periods and strict testing requirements.

By March, authorities had banned drivers from entering mainland China altogether, in a bid to reduce the likelihood of cross-border infections. 

The ripple effect meant that food prices at markets and restaurants rose, and have since surged 15 to 20 per cent.

Hong Kong residents are hoping the changes to the truckers’ arrangements will bring some financial relief soon.

One poultry seller told CNA that business has not been “as good as before” with the slowing economic activity. A shopper said the new measures for the truckers will benefit consumers, as the costs of commodities will be lowered if the supply chain is more stable.

However, the prices will take some time to respond to the change in measures.

Industry players estimated that Hong Kong is currently only carrying out a third of the 24,000 deliveries it typically achieved in a day due to manpower woes.

This has been caused by the exodus of drivers, and companies would need time to address this by rehiring drivers.

Mr Simon Wong, president of the Hong Kong Federation of Restaurants and Related Trades said: "In this regard, we expect that delivery costs will be lowered by about 30 to 40 per cent.”

He added that the year-end is very important for the sector, as there is demand for deliveries to and from China and Hong Kong, during the Christmas and Chinese New Year period.

EASING OF RULES

The changes will be incremental, but they signal a hopeful step towards cross-border resumption in the longer term.

This comes as China announced a change to its COVID-19 policy last week, with a nationwide loosening of hardline restrictions that had battered its economy and sparked off rare protests against the ruling Communist Party.

The new rules are a major relaxation of Chinese President Xi Jinping's signature zero-COVID policy, three years into the pandemic.

Hong Kong authorities have said there is a high possibility of quarantine-free travel with the mainland in the coming weeks.