The Australian Financial Review (AFR) has drawn attention to the emerging disruption to global shipping as a result of escalating US-China trade tensions — and the ripple effects already reaching Australia:
- Blank sailings are increasing
- Booking cancellations are rising
- Freight rates are starting to climb again
FTA/APSA provided comment, with Tom Jensen noting:
"We're receiving reports of increased booking cancellations and omissions. The global market is on edge, and we're already seeing the ripple effects reach our shores."
The article also references the continued rise of Terminal Access Charges (TACs) imposed by stevedores, highlighting structural issues that have been well documented by the ACCC and the Productivity Commission.
"Unless action is taken on unregulated terminal access charges, Australian producers and consumers will continue to pay the price for market failures that have been well-documented by the Productivity Commission and the ACCC," said Mr Jensen.
The AFR notes recent increases of almost 9 per cent in Sydney and close to 7 per cent in Brisbane, with Hutchison Ports the latest operator to announce higher fees — joining Patrick, DP World and VICT in applying fee hikes earlier this year.
The link between global volatility and domestic vulnerabilities is clear. While the industry navigates international uncertainty, long-standing structural reform remains essential to ensure resilience in Australia's maritime logistics system.
We thank Jenny Wiggins from Australian Financial Review for her coverage.
Link to the full AFR article titled Trump trade war shakes up shipping and ripples to Australia is available HERE (subscription required)