News
Industry Update – July 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 with the US and Iran reportedly exchanging further strikes even as negotiations continue to a durable settlement.
- Container lines are still operating only limited and carefully managed transits, with many carriers:
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- 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 simply whether key routes such as the Strait of Hormuz or the Red Sea remain technically navigable, but whether cargo can move with enough certainty to support production schedules, inland logistics, inventory planning and contractual delivery obligations.
- Operational warnings to commercial shipping remain severe. A US advisory warned that vessels in or near Hormuz ignoring lawful orders, or observed supporting mine-laying activity, may be treated as threats.
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)
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 July 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 Fuel Surcharges:
The situation in the Middle East is causing significant disruption to international energy markets, directly affecting Australian domestic freight costs through fuel pricing.
The Government decision to extend the reduced fuel excise throughout July provides some short term relief to fuel costs but is still a temporary relief rather than a long-term solution.
We are receiving changing fuel notices frequently, which highlights the fluidity of the situation. Due to this instability, frequent monitoring and adjustment is necessary.
The updated fuel surcharges as of today are given below:
Sydney Fuel surcharge = 31%
Melbourne Fuel surcharge = 27%
Brisbane Fuel surcharge = 27.5%
Adelaide Fuel surcharge = 29.5%
Fremantle Fuel surcharge = 36%
Note that if you have a regional delivery, the fuel surcharge will be higher than metro as per usual.
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 and keep you updated. However, if you would like to clarify the latest updates, please contact your sales representative.
Full Import Declaration Charge Increase:
We have received notice from the Australian Border Force (ABF) that as of 1 July 2026, there are changes to the biosecurity cost recovery charge on Full Import Declarations (FIDs) for goods arriving in Australia by air and sea.
The changes to current charges will apply to imports effective immediately.
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