Freight Assistance package announced

The Federal Government has today announced it will put $110 million towards securing freight flights to help with exporting Australia’s agricultural produce into key global markets, with return flights to bring back vital medical supplies, medicines and equipment.

The ‘International Freight Assistance Mechanism’ will initially focus on the markets of China, Japan, Hong Kong, Singapore and the UAE, with four key departure hubs: Melbourne, Sydney, Brisbane and Perth.

The initiative was part of the Government’s $1 billion Relief and Recovery Fund announced on March 12 to support regions, communities and industry sectors that have been affected by COVID-19 such as agriculture, tourism and education.

The Freight Assistance package is much needed at a time when most flights overseas have been grounded amid the global COVID-19 crisis.

“This will help restore key freight routes for our farmers until commercial capacity can be restored again,” said Deputy Prime Minister, Michael McCormack.

“We are doing everything possible to help our high-value agricultural and fisheries exporters get their produce on airplanes and into overseas markets,” he said.

“Everything we are doing as a Government in response to this pandemic is focused on saving lives and saving livelihoods and we know our agriculture industry is key to this.”

Federal Trade Minister, Simon Birmingham, said the COVID-19 pandemic had led to major air freight shortages and had disrupted supply chains around the world.

“This mechanism will help re-establish supply chains for our exporters and keep freight routes open,” Minister Birmingham said.

“As a trading nation and with one in five jobs trade-related, we want to maintain Australia’s reputation as a reliable trading partner so that as countries recover, it’s our goods and services that can return to our overseas markets quickly.

“When these flights return there will be capacity for them to transport critical medical equipment and supplies which will be vital to the ongoing health response.”

Federal Agriculture Minister, David Littleproud, said this initiative would focus on high-demand agricultural and fisheries exports which have been hit hard by the COVID-19 crisis.

“We’re backing our farmers by making sure they can get more of their high-quality product into overseas markets,” Minister Littleproud said.

“The more agricultural exports we can secure, the more regional jobs we can protect.”

In addition, Australian Fisheries Management Authority (AFMA) levies will also be waived for all Commonwealth fishers, ensuring they do not have to pay levies for the remainder of 2020.

Assistant Minister for Forestry and Fisheries, Jonathon Duniam, said the freight assistance and levy relief was a lifeline for Australian fishers.

“The fishing industry was one of the first hit when access to China was cut-off in January, bringing many in the industry to their knees,” he said.

“Unlocking key international markets will get thousands of fishers, divers, deckhands and processors back on the job, and the levy relief will help keep fishers financially afloat.

“Our seafood industry has been built on the back of some of the toughest and most resilient Australians, and this assistance will ensure that the sector can build a bridge to recovery.”

The International Freight Assistance Mechanism will be overseen by newly appointed International Freight Coordinator General, Michael Byrne. Byrne has significant international logistics experience as Managing Director of Australia’s two largest logistics companies, Toll Holdings and Linfox, plus as a non-executive director of Australia Post.

Byrne will work with Austrade to help establish arrangements with exporters, airlines, freight forwarders and industry bodies as well as oversee the mechanism’s operations including advising the Government of destinations, freight selection and prioritisation.

Further details are available in the International Freight Assistance Mechanism Fact Sheet.

The National Farmers Federation (NFF) has lauded the new measures put in place to assist farmers with shipping their produce overseas.

“Australian farmers export 75 per cent of what they produce," said NFF President, Fiona Simson.

“Access to key markets is essential to the continued success of our industry and importantly to the livelihoods of farmers, farm workers and the thousands of employees along the food supply chain.

“Given the perishable nature of products such as red meat and dairy, it was vital, that alternate air freight options be created in the face of decreased passenger flights."

Simson said NFF and its members had been working collaboratively with the Government for some weeks on ways to secure the continuity of Australia’s food exports and the farmers and workers that depend on it.

“Today’s announcement is pragmatic and effective and we thank Deputy Prime Minister McCormack, Minister Littleproud, Minister Birmingham and Assistant Minister Duniam for their support,” she said.