While demand for airfreight is continuing to bounce back to pre-covid levels and with capacity picking up on many sectors and trade lanes, capacity to/from Australia is further shrinking.
Contributing factors are the restrictions on inbound passenger numbers set by the Australian government and the current lock down situation which is still in place in some Australian capital cities.
The effects are an expected 20% less airfreight capacity in August with capacity down by close to 30% to some Asian destinations.
Inbound passenger-to-cargo operations by several airlines is assisting the current situation.
While we are in the traditional slow season for airfreight at the moment, the current market conditions are far from normal.
With the perishable market starting to pick-up, heading towards its traditional peak season in the later part of the year, we will no doubt see further capacity issues unless the passenger restrictions change to allow the carriers to add more flights to / from Australia.
On a positive note, the IFAM scheme which was implemented by the Australian Government in 2020 will be extended beyond Q3, 2021.
This will assist perishable exporters to still be competitive on overseas markets and be able to airfreight their products at a reduced freight cost.