Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) commended the Federal Government's announcement on 27 August 2021 to extend IFAM until mid-2022.
At the time of the announcement, with the vaccine rollout well on target and in anticipation of a significant uptake in travel generating additional belly space availability for cargo movements, this seemed to be a logical end date for this important financial relief measure.
That was prior to the arrival and rapid global spread of the Omicron variant of COVID-19 that has again generated considerable uncertainty for the airfreight market for the foreseeable future.
A recent example is Cathay Pacific who has announced there will be substantial reductions to their cargo long-haul freighter capacity, including to Australia and New Zealand, in the first quarter of this year. This is directly attributed to the latest aircrew quarantine measures imposed by the Hong Kong SAR Government due to rising Omicron case numbers. This response is likely to have a significant effect on supply and consequently rates. We are expecting similar decisions and impacts across the broader aviation industry.
Whist we hope that the Omicron outbreak will soon peak in Australia and other key overseas markets, we have urged the Federal Government to make contingency plans with appropriate budgetary considerations to continue IFAM, on a needs basis, post the scheduled termination in mid-2022.
We look forward to an opportunity to further engage with the Federal Government in addressing strategies to maintain global air connections and to retain Australia's reputation as a reliable global trading partner. FORMAL CORRESPONDENCE AVAILABLE HERE Paul Zalai - Director FTA | Secretariat APSA | Director GSF |