International Freight Assistance Mechanism (IFAM) Update
The International Freight Assistance Mechanism (IFAM) is an assistance scheme implemented by the Australian Government Trade and Investment Commission. This scheme focuses on assisting Australia’s agriculture and seafood exports to international markets such as China, Japan and Hong Kong.
IFAM was introduced in April 2020 has been authorised to continue until July 2021, with the possibility of extension.
Australian Government Freight Controller, Air Vice Marshal Marg Staib, explains that Covid-19 has caused many disruptions for all business of Australia. With this has come higher prices within the freight and trade industry and advises that all partners within this sector adjust to the higher prices ahead of the next season. Ms Staib continues to note that it is likely that prices will not deflate well after the end of 2022 or beginning of 2023. Freight forwarders should take action to advise their clients and partners about costs and assist by exploring what both parties can do to improve.
The immediate challenges that IFAM is facing is:
- Halving of the passenger cap due to flight cuts
- Emirates cutting 8 to 9 flights ex. Brisbane, Sydney and Melbourne. Although this will not affect Brisbane to Dubai or Perth to Singapore flight routes as these are cargo flights only
- Frequent changing of quarantine requirements for each state within Australia
- Inflated costs – that are likely not to return to pre-covid rates for a substantial amount of time
- Increased instability – Due to continuous border closures, Individual business responses will impact the stability of the market, particularly around Chinese’s New Year.
The current statistics as of January 13th are:
- 3012 thousand tonnes have been exported
- Export product value is 4.3billion dollars
For more information on the IFAM scheme, please click here.
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