Caps on international arrivals threaten price hikes and stock delays for Australian consumers for Christmas
The freight industry warns that the fallout could see some airlines stop carrying goods to Australia, and that without the help and planning of the government, Australians face a shortage of goods, such as parts car and toys.
Freight industry expert Frederic Horst told nine.com.au that cuts in international arrivals are a big part of the capacity destined for Australia.
Mr Horst, managing director of Cargo Facts Consulting, said airlines would charge more for tickets or increase air freight charges from Asia and the Middle East.
“It’s basically that air freight rates are going to increase, and capacity is already limited at the moment,” Mr. Horst said.
“You should also remember that we are currently at a peak in air freight costs globally.”
The financial blow to Australian air cargo exports or imports could reach $ 1.3 billion.
Mr Horst warns that stocks of consumer goods for the Christmas shopping rush would face significant pressure.
“The problem is accentuated in Australia more than anywhere else because we rely more on belly capacity than most,” he said.
“For Australia, the number of cargo arriving on the belly of a passenger plane is around 80%; globally, it is closer to 50%.
“On something like an iPhone, you probably won’t notice the price hike as much as it is a high-end luxury electronic device.
“But you’ll probably see a much bigger impact on toys and small electronics.”
Australian retailers who depend on sourcing their products overseas are also concerned about the effects of reduced overseas flights.
Paul Zahra, chief executive of the Australian Retailers Association, told nine.com.au that supply chains are already under pressure.
“This comes at a time when businesses are already facing global supply chain issues and high shipping costs due to the impacts of COVID beyond their control,” said Mr.
“The federal government should continue to work with industry to understand and support freight channels to ensure customers can get the products they want. “
The Morrison government‘s The $ 780 million International Freight Assistance Mechanism (IFAM) program was launched to maintain global air links during the pandemic.
Trade Minister Dan Tehan said he had supported around 35,000 jobs directly and more than 120,000 jobs indirectly in sectors such as aviation and logistics.