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Export Facilitators Projectupdate A
BY MANUS STOCKDALE EXPORT DEVELOPMENT PROJECT LEAD, VEGETABLESWA
s we approach the end of 2020 we’re all hoping that the new year will see the world returning to some form of ‘normal’. Impact of COVID-19 on WA vegetable exports The export trade has been heavily disrupted by COVID-19 with the biggest impacts coming from freight and logistics, particularly in the air freight section.
The Australian Government’s International Freight Assistance Mechanism has provided some relief, but exporters should be adjusting to the ongoing impact of the pandemic well into next year. The International Air Transport Association is reporting that air travel is unlikely to return to pre-COVID conditions until 2024, so it is important that Australian businesses review their operating models. In a recent Austrade communication with exporters International Freight Co-ordinator General, Michael Byrne, suggested businesses should consider the following: 1. Aggregate and consolidate — While it may seem counterintuitive under
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WA Grower SUMMER 2020
normal conditions, with COVID-19 still impacting flights, businesses need to work together with other exporters and freight forwarders to consolidate loads. By doing so, businesses may be able to access lower rates for loading, packing, warehousing and transport. 2. Deal in facts — Build an understanding of the realities of the situation. For example, you can’t land very large planes in Hobart (due to restrictions around the capacity of the tarmac, loading equipment etc), so chartering a large plane to Hobart to move Tasmanian produce internationally is not likely. Consider new options for how you could get your goods where they need to go. IFAM is always open to hearing your ideas but be realistic about what can be achieved. 3. Plan — Businesses must do extensive planning now more than ever. With flight numbers down approximately 80 per cent from last year and freight capacity filling up weeks in advance, it is no longer feasible to book freight on the same day you’re intending to ship. Businesses need to be forward planning their freight movements and business operations.
3 WITH COVID-19 still impacting flights, businesses need to work together with other exporters and freight forwarders to consolidate loads.
For example, are there insufficiencies in your supply chain? Can you re-negotiate third-party contracts? Change your packaging? Export by sea rather than air? Use this breathing space to plan for your longterm financial profitability. IFAM is working across all levels of government to provide information on support options to help businesses modify supply chains and explore other freight solutions. For more information on business support options from the Australian Government, visit business.gov.au.
Air travel is unlikely to return to pre-COVID conditions until 2024.
4. Adjust and evolve — Use this time to adjust, look at the structure of your business, your product and your supply chains.
Vegetable export trade update January to September 2020 Australia’s vegetable exports have seen a moderate decline over the period from January to September 2020 (see Table 1).
