Australia Re-launches Flights for Cargo

Pictured above: Lufthansa loading an Airbus A330 passenger aircraft with highly
urgent goods, mainly from the medical sector. In addition to the cargo compartments,
the cabin including the stowage compartments above the seats was also loaded.
 – Lufthansa [From Forbes.com]

The Australian Government will re-launch hundreds of flights to deliver fresh produce to key international markets as part of a A$170 million boost to an export sector grounded by the coronavirus emergency. Return flights, under the program, will provide an opportunity for Australia to import medical equipment and medicines.

The support package includes A$110 million to coordinate flights from Melbourne, Sydney, Brisbane and Perth to deliver fresh produce to China, Japan, Hong Kong, Singapore and the United Arab Emirates.

Today’s announcement by Trade Minister Simon Birmingham also waives A$10 million in Commonwealth fishery fees and adds almost A$50 million to the Government’s existing export grants program to reimburse marketing costs to exporters.

The exports lifeline follows months of uncertainty for the seafood sector, hit hard when markets in China collapsed early in the COVID-19 crisis. Other winners include red meat, dairy and horticulture exporters that have relied on cargo in the belly of passenger aircraft to deliver their produce. Since new regulations on air travel were introduced to curb the spread of the pandemic, exporters, fishers and farmers have struggled to maintain access to high-value overseas markets.

We await full details of which airlines and flights will be used, but expect that it will involve the conversion of passenger aircraft to carry cargo – referred to in the industry as P2C.

The Government has appointed former Toll Holdings managing director and former Linfox chief executive Michael Byrne as its international freight coordinator to oversee the program, working with airlines and exporters.

Colless Young will continue to issue regular updates on the effects on international trade and shipping as a result of COVID-19 as the situation unfolds. As licensed Customs Brokers and International Freight Forwarders, we offer you correct, professional advice on all your import and export shipping needs. We are based in Brisbane and handle cargo at all major ports and airports around Australia.