FIATA – IATA on COVID-19 medical and economic impacts

The International Federation of Freight Forwarders Associations (FIATA) and its National Association Members who are at the centre of the international trade logistic and supply chain management process continue to support initiatives to contain the spread of Covid-19. At this time all methods of the international movement of goods in trade have been impacted. However, airfreight is probably one of the key movers in international freight that has been most dramatically impacted by government’s restrictions and overnight embargoes to the movement of people across borders, with daily flight cancellations and fleets near to be fully grounded.

It is commonly understood that International airfreight provides the opportunity to deliver goods in the just in time (JIT) concept inherent in most business models. The disruption to the aviation sector is now one of the greatest threats to the timely delivery of life saving medical supplies and key componentry to sectors identified as vital to economic security.

On this matter FIATA noted and supports the International Air Transport Association (IATA) Media release where government’s do not appear to clearly understand that short term decisions will exacerbate the immediate and short-term ability of economies to meet the challenge of Covid-19 containment and then the economic rebuild. As to those two critical needs, air cargo is vital in delivering emergency relief, medical technical infrastructure componentry and keeping global supply chains functioning with JIT intervention. Such delivery has been traditionally through dedicated cargo aircraft and high utilization of capacity in passenger aircraft (belly hold). With passenger aircraft now denied cross border access such belly hold capacity has significantly declined, rates have become exorbitant and suppliers, through their international freight forwarder partners, now seeking to move goods through other compromised logistic chains.

As international airfreight is instrumental in transporting perishable, short shelf life goods and

medical supplies it is time for all governments to address decisions that are counterproductive to the fight of Covid-19

FIATA notes the commentary of the IATA Director General and CEO to the effect:

“Over 185,000 passenger flights have been cancelled since the end of January in response to government travel restrictions. With this, vital cargo capacity has disappeared when it is most urgently needed in the fight against COVID-19. The world’s fleet of freighter aircraft has been mobilized to make up this capacity shortfall. Governments must take urgent measures to ensure that vital supply lines remain open, efficient and effective,”