Is Australia Post a Good Business?
01 May 2021
In the author’s opinion, the answer is no—and here’s why.
Australia Post, a government-owned company, reported a turnover exceeding A$7 billion last financial year but posted a meager pre-tax profit of approximately A$50 million. After taxes, the net profit dropped to around A$35 million, equating to less than 0.5% of turnover. This razor-thin margin raises serious concerns about the company’s financial efficiency, particularly given its lack of significant competition.
While Australia Post highlights a 30% year-on-year profit growth (from A$41 million to A$55 million), the focus here should be on revenue versus profitability. With such slim profit margins, the business remains highly vulnerable to potential losses, especially in a challenging economic environment. Australia Post seems to function more as a giant employment enterprise, sustaining Australian jobs while offering extravagant executive compensation packages. Reports of exorbitant salaries, questionable expense claims (e.g., executives living in luxury hotels despite local assignments), and excessive bonuses point to a governance structure that prioritizes insiders over operational efficiency.
Adding to the controversy, unresolved claims and poor management practices, such as the failure to secure enforceable resignation agreements with former executives, further tarnish Australia Post’s reputation. A national discussion on its future—whether through privatization, a breakup, or public listing—could redirect funds toward reducing Australia’s national debt. For perspective, consider Toll Global Express: a company with approximately A$3.2 billion in revenue, arguably better managed, was sold for just A$7.8 million after falling into losses.
Domestic Air Freight and Hazardous Goods Advisory
04 Jan 2021
If you plan to consign air freight, understanding the rules about prohibited items is essential. Failing to declare hazardous goods (HAZ) can result in severe penalties, including hefty fines and imprisonment. Some hazardous materials may be shipped with proper documentation, but if unsure, always consult CargoMaster before dispatching your cargo.
The following items are strictly prohibited from air freight unless accompanied by specific permits and documentation:
- Dangerous goods: Includes firearms, aerosol cans, explosives, ammunition, and chemicals.
- Perishables and restricted items: Food products, pharmaceuticals, living animals, or human remains.
- Valuable and high-risk goods: Precious metals, fine art, jewelry, and cash equivalents.
- Lithium-ion batteries: Often found in consumer electronics like laptops and smartphones.
CargoMaster adheres strictly to IATA regulations and reserves the right to refuse any shipment that poses a risk to safety or personnel. Common household items such as drain cleaners, spray cans, and camping fuel can behave unpredictably in the pressurized environment of an aircraft, posing significant hazards.
Air Cargo Trends During COVID-19
Air Cargo Drop in April – 5 June 2020
According to Clive Data Services, air freight volumes improved slightly in May 2020 compared to the steep declines in April, which saw the sharpest drop in air cargo demand in history (-37% year-on-year). However, the market remains volatile. Capacity pressures eased marginally, but the rebound in demand continues to lag behind increased capacity, leading to downward pressure on freight charges.
The managing director of Clive Data highlighted that weekly data is now critical for navigating uncertainty in the air cargo industry, as market volumes remain erratic. With passenger schedules resuming, additional capacity may further impact air cargo revenues.
Airlines Adapt to Move Freight
25 April 2020
European airlines have adopted innovative measures to address freight challenges during the pandemic, including loading cargo on passenger seats. For example, Lufthansa’s A330 aircraft recently transported 35 tons of medical goods from Shanghai to Frankfurt, utilizing both the belly cargo hold and passenger compartments.
Other carriers, such as Austrian Airlines and LATAM, have similarly repurposed passenger aircraft to move essential medical supplies and perishables. These adaptations underline the critical role of air freight during global emergencies, even as the industry grapples with capacity constraints and fluctuating demand.
Western Sydney Airport – A Freight Hub in the Making
23 April 2020
Western Sydney Airport, set to open in late 2025, is poised to become Australia’s busiest freight hub. The facility will operate 24/7, offering a streamlined gateway for NSW exporters to global markets without relying on trucking goods to Melbourne or Brisbane.
The airport’s freight precinct, developed in collaboration with leading logistics operators such as Australia Post, DHL, and Qantas Freight, is expected to handle 220,000 tonnes of air freight annually in its initial phase, scaling up to 1.8 million tonnes in the future. As online shopping and demand for temperature-sensitive goods grow, this facility promises to reshape Australia’s air freight landscape, driving economic growth and job creation.