Air freight capacity to and from New Zealand is becoming scarcer as airlines cut back on passenger flights as a result of the coronavirus and travel restrictions, the Board of Airline Representatives says.
A “huge capacity reduction” among airlines flying to and from New Zealand and globally posed a danger for businesses, its executive director Justin Tighe-Umbers said.
Passenger flight capacity to and from New Zealand as measured by available seats had fallen by between 10 and 15 per cent as of a week ago, but that was now “ancient history” as the situation worsened, he said.
“When flights are pulled cargo capacity goes as well.
“There is a danger to importers and exporters.”
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Some passenger flights are essentially being paid for by the freight they are carrying, as international passenger traffic shrivels.
Some passenger flights were essentially being paid-for by the freight in their holds, he said.
“Airlines are working incredibly hard from a ‘duty of care’ perspective to maintain some form of connections.”
The comprehensive ban that President Trump announced on Thursday on travel from continental Europe to the US was having a knock-on effect, he said.
“It starts to dry up north-south connections and makes it that much harder to provide flights down to this part of the world.
“Every time New Zealand tightens restrictions, the same effect applies.”
The board represents the more than two-dozen airlines that fly to New Zealand and Tighe-Umbers said airlines were in “survival mode”.
AP
More than 99 per cent of imports and exports by weight travel by sea, and with China’s ports back in action the situation there is improving, says ExportNZ.
The Transport Ministry estimates that more than 99 per cent of imports and exports, by weight, travels by sea rather than by air.
ExportNZ executive director Catherine Beard said the situation with regard to sea freight to China was improving “every day”.
“We are hearing some of our big commodity exporters now have good access to China, particularly for food which has been prioritised.”
Some exporters had been forced to switch to air freight during China’s coronavirus lockdown because of disruption at Chinese ports, which was “obviously more expensive”, she said.
“If there are fewer planes flying fewer routes, that does take out capacity.”
She said that would primarily be an issue for companies shipping perishable, high-value goods, such as seafood and perhaps flowers.
“Looking at the really big picture, it is the shipping that is fairly important.”
The inability of some Kiwi businesses to fly overseas to attend trade shows was an issue, she said.
“There have been quite a few big trade shows cancelled, and that is your forward pipeline of work.”
People would be making the most of electronic communications and virtual meetings, and businesses that had their own people in overseas markets would be in a better position.
But companies that were represented by agents in overseas markets often had to visit them to keep their partnerships high in mind, she said.
“In the years I’ve been working with exporters it is just a mantra that ‘you have got to be in the market’.”
