NewsCorp's NewsWire reported on rising concern within government and industry that the disruption caused by the Iran conflict has reinforced how exposed Australia would be to a far more severe supply chain shock if tensions escalated in the Taiwan Strait.
The article explored Australia's dependence on trade flows through the region, including fuel, manufactured goods and key shipping routes linked to China, Taiwan, Japan and South Korea.
In contributing to the article, Paul Zalai, Director of Freight & Trade Alliance (FTA), focused on the direct freight and commercial risks for Australian importers and exporters, including disrupted trade flows, higher freight costs, emergency surcharges and the limits of contingency planning alone.
Paul Zalai said, "Rising tensions in the Taiwan Strait threaten the flow of goods to and from Australia."
Paul Zalai also warned, "Recent events in the Middle East have shown that foreign-owned shipping lines are quick to impose emergency surcharges without notice, even on cargo already in transit," Mr Zalai said.
"With insurance typically excluding war-related risks, Australian importers and exporters may be forced to absorb substantial unbudgeted costs."
He said planning alone was "not enough" and called on the government to be "proactive".
"Contingency planning is essential, but it is not enough on its own," Mr Zalai said. "Australian exporters and importers cannot be left to carry the full cost of global instability.
"With nearly half of our trade exposed to this region, proactive government support is critical to safeguard supply chains and maintain international competitiveness."
Read more HERE
