Air freight
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2.1.1 International
Australia’s air freight industry continues to struggle as international passenger flights remain at historically low levels. The COVID-19 pandemic has exposed the fragility of international air freight supply chains and the importance of a sovereign aviation capability. The Australian Government’s International Freight Assistance Mechanism (IFAM) is a targeted, temporary emergency measure to keep global air links open in response to the ongoing effects of the COVID-19 pandemic.
Since April 2020, IFAM has reconnected nine Australian ports to 58 international destinations and helped maintain regular airfreight connections to Australia’s existing export markets. The program has supported up to 85% of air freight exports of high-value and time sensitive perishable products to established markets, ensuring Australian businesses could continue to meet supply contracts with international customers. The program also supported the import of critical medical supplies, equipment and other goods of national importance.
IFAM complements other government support options, as businesses transition from reliance on emergency assistance and adjust to a recalibrated international trading environment. Alternative support measures for exporters will be important to ensure high-value goods continue to reach established markets as international air freight recovers. The program’s extension to 30 June 2022 brings total program funding to approximately $1.04 billion and acknowledges the ongoing impact of international travel restrictions on airfreight supply chains.
2.1.2 Domestic
Domestically, while aircraft trips fluctuate conversely on the number and severity of lockdowns, the outlook for domestic air freight is more positive.
Domestic air cargo movements are recovering, even briefly surpassing 2019 figures for the month of December 2020. While this may largely be driven by fewer people travelling for the holiday season and instead posting gifts, it is a hopeful sign that the domestic air freight situation in on track to full recovery – at least in terms of volume.
