News / Australia must extend subsidies for air cargo while capacity is squeezed

Subsidies are continuing to prop up Australasian air cargo markets – but capacity challenges remain for importers and exporters.

In Australia, the International Freight Assistance Mechanism (IFAM) is due to end in September, but forwarders are warning of potential fallout if subsidies aren’t extended.

The International Forwarders & Customs Brokers Association of Australia (IFCBAA) said it had “concerns for airfreight capacity and rates,” noting 13,726 IFAM-supported flights, serving 67 destinations from nine locations, with an expected cost of A$800m (US$620m).

The association said ...