News
Industry Update – June 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 operating environment 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
- Even where vessels can technically transit The Strait of Hormuz, uncertainty may cause ships to loiter, defer entry, divert mid-voyage, or wait for updated security advice creating a chain reaction beyond the immediate maritime leg.
- The broader geopolitical setting remains highly unstable even with the reported announcement of a peace deal to be signed in coming days between the US and Iran.
- Operational warnings to commercial shipping have also become more 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)
US Tariff Update
The US Trade Representative has had 60 countries, including Australia, under investigation, arguing that goods made with forced labour have been allowed to move through the global supply chain to its market and that countries are not doing enough to prevent this.
The US has proposed new tariffs on imports from around 60 economies in response, though they are not yet implemented and are subject to consultation.
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 1 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.
Peak Season Surcharge from Asia to Australia
We received notifications this month from some shipping lines in regards to a Peak Season Surcharge (PSS) from Asia to Australia, details as follows:
This will come into effect from 2 July 2026, affecting North East and South East Asia, India Sub-Continent, Middle East Region, Africa and Latin America to Australia.
USD 500/20’
USD 1000/40’
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.
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 = 36%
Melbourne Fuel surcharge = 30%
Brisbane Fuel surcharge = 31.5%
Adelaide Fuel surcharge = 35.5%
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.
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