News
Industry Update – August 2026
Attention: Shipping Manager
Middle East Conflict
As previously noted, we are monitoring developments from Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) on the ongoing conflict in the Middle East.
The situation has resulted in severe disruption to global air cargo and containerised sea cargo, with flow-on consequences for Australian supply chains.
While some regional ports, bookings, and limited flight operations have resumed, the overall geopolitical setting remains highly unstable.
- Container lines are still operating only limited and carefully managed transits, with many carriers:
-
- Suspending bookings
- Declaring end of voyage or voyage cancellations
- Discharging cargo at alternative ports outside the Gulf
- Applying Emergency Fuel, War Risk and Emergency Conflict Surcharges
- The issue is no longer whether key routes such as the Strait of Hormuz or the Red Sea remain navigable, but whether cargo can move with certainty to support production schedules, inland logistics, inventory planning and contractual obligations.
- Operational warnings to commercial shipping remain severe.
Middle East disruption is no longer confined to energy markets or distant geopolitical commentary, but a supply-chain risk with consequences for sea/airfreight, inland logistics and insurance.
Despite periodic political statements suggesting reopening, shipping through the Strait of Hormuz remains restricted in practice, heavily militarised and unpredictable. Industry guidance continues to emphasise that “open on paper” does not equate to safe or commercially viable transit.
We will continue to monitor the situation closely.
(Source: Freight & Trade Alliance)
Super Typhoon Dolphin
Typhoon Dolphin made landfall in eastern China, including Shanghai and Ningbo, which has added to congestion around East Asian ports.
The storm has brought heavy rain, flooding and the risk of landslides across the region, forcing more than one million people to evacuate their homes.
Super Typhoon Dolphin follows Typhoon Bavi, which caused delays to containership capacity in North Asia throughout July. While it is currently forecast to weaken further as it moves inland, it has widely disrupted transport across the region.
Ningbo and Shanghai were the worst affected ports with terminal operations brought to a standstill last week, and vessel delays are expected to be protracted, with experts expecting a few weeks will be needed to clear the backlog.
Ports across East China are also implementing contingency measures. Shanghai terminals and additional facilities announced restrictions and temporary operational suspensions as the weather deteriorates.
While Shanghai and Ningbo have gradually begun to recover port operations, experts say to anticipate further delays may occur as terminals continue to work through a significant backlog of accumulated cargo.
We expect to see more delayed vessels, port closures, interruptions, schedule changes, omissions, trucking delays and container availability issues as ports clear the backlog.
(Source: Al Jazeera/Loadstar)
US Tariff Update
As reported earlier, US Trade Representative has introduced measures in response to what the US describes as a failure of 60 economies to prohibit imports produced using forced labour.
Australia has been identified as an economy subject to additional tariff measures, despite Australia’s modern slavery legislation and mandatory reporting obligations, with the U.S. Customs and Border Protection (CBP) subsequently confirming that Australian-origin goods covered by the final action will be subject to an additional 12.5% duty, applicable from 24 July 2026.
This confirms that Australia remains within the scope of the USTR’s final determination and that the investigation process has now moved from consultation and review into implementation.
Experts say there are questions as to the rationale for Australia’s inclusion and whether further policy measures may be required to satisfy US expectations.
(Source: Freight & Trade Alliance)
General Rate Increase from Asia to Australia
We received notifications this month from a number of shipping lines in regards to a General Rate Increase (GRI) from Asia to Australia, details as follows:
This will come into effect from 15 August 2026, affecting North East and South East Asia to Australia.
USD 500/20’
USD 1000/40’
A number of shipping lines have indicated a GRI will also come into effect from 1 September 2026, affecting North East and South East Asia to Australia.
USD 500/20’
USD 1000/40’
LCL will increase accordingly.
Due to the current global situation, we believe these increases may not eventuate. However, because shipping lines have announced them, we want to keep you informed.
If you need further clarification on pricing on these trade lanes, please contact your sales representative.
Destination Empty Container Park Increase:
Destination Empty Container Park surcharge has increased for Fremantle, effective immediately. Updated surcharge is given below:
Fremantle Empty Container Park surcharge = AUD 230 per container
Destination Fuel Surcharges
As previously reported, the situation in the Middle East has caused disruption to international energy markets, directly affecting Australian domestic freight costs.
The reinstatement of the Government’s fuel excise has increased the cost of diesel and other transport-related fuels, and we are seeing fuel surcharges increase accordingly.
Please note that the increasing fuel surcharges do not represent an increase in margin for our business, but reflect the rapidly rising costs being passed through by our suppliers, and it is necessary for us to ensure our operating costs are covered so we can continue to move cargo to its destination and maintain efficient service for our customers.
- Destination Fuel Surcharge Update
Current fuel surcharges are given below for reference:
Sydney Fuel surcharge = 39%
Melbourne Fuel surcharge = 37%
Brisbane Fuel surcharge = 42%
Adelaide Fuel surcharge = 45.5%
Fremantle Fuel surcharge = 36%
The fuel surcharges will continue to be applied based on the applicable rate during the period in which the transport movement takes place. Where services span multiple days, the surcharge may be adjusted to reflect the rate in effect on each day of the movement.
Given the volatility of the price of fuel, we will continue to assess these surcharges weekly. However, if you would like to clarify the latest updates, please contact your sales representative.
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