Advocating for continuation of IFAM - FTA and APSA collaborate with the National Farmers Federation

Freight and Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) are escalating advocacy for extension of the International Freight Assistance Mechanism (IFAM) beyond 30 June 2021 as an emergency measure to ensure commercially viable access to market for Australian exporters of perishable commodities. According to Austrade, approximately 35,000 jobs directly and over 120,000 jobs indirectly in the agriculture, seafood, and aviation and logistics sectors are at risk if airfreight supply chains fail.

The necessary travel restrictions imposed in response to the COVID-19 pandemic resulted in an initial reduction of more than 90% of passenger flights in and out of Australia causing an immediate and devastating effect on trade with 80% of Australia's airfreight typically carried in the bellies of passenger flights. To the great credit of the federal government, the IFAM was established in April 2020 with $110 million in funding to help keep supply chains open. In July 2020 an additional $241.9 million was allocated and in October 2020, a further $317.1 million was provided to extend IFAM until the middle of 2021.
 
As highlighted in our commentary provided to ABC Radio on 23 February 2021 (reference is made to the emerging air cargo dilemma at 7 mins: 24 sec), our advocacy also addresses concerns that the removal of IFAM may significantly reduce 'economies of scale' and available services to support e-commerce and other general air freight movements. This in turn will only add pressure to the sea cargo containerised perishable environment that is currently facing its own operational complexities.
 
In collaboration with the National Farmers Federation (NFF), we are delighted to advise we will be working with AgriFutures Australia (and their consultants KPMG ) to complete an economic analysis to quantify the projected economic impacts from the cessation of the IFAM.
 
FTA and APSA will be engaging direct with members (including all IFAM freight forwarders) and will be supported by Michael Bennett, FTA's Airfreight Member Representative.
 
In addition to representation that has already been made to Hon Dan Tehan MP (Minister for Trade, Tourism and Investment) and Hon David Littleproud MP (Minister for Agriculture, Drought and Emergency Management), FTA, APSA and the NFF will also extend advocacy with the National COVID-19 Commission.