China quarantine tightening, difficulty in securing alternative transportation methods

The tightening of quarantine controls at Chinese airports and seaports continues to affect cargo flights to and from Pudong, Shanghai, China. Qatar Airways (QTR/QR) and other airlines have diverted cargo flights to Shanghai to airports in Guangzhou, Shenzhen, Zhengzhou and other cities, and some airlines are adjusting their flights to Hong Kong. In addition, some forwarders are trying to use different routes for exports from Shanghai, such as transporting goods to Korea by sea and then transporting them by air from Korea, but it is difficult to find an immediate alternative. Mazda's production lines in Japan have already been affected, with the company suspending operations at its headquarters plant in Hiroshima and Hofu plant in Yamaguchi Prefecture this week as it did last week. This is because cargo flights from Shanghai have been disrupted and the supply of in-vehicle components that use semiconductors has been delayed. The impact of the production cutback is expected to be around 10,000 units.