US TARIFF UPDATE 6 - Trump Trade War Shakes Up Shipping and Ripples to Australia

Today's U.S. Customs and Border Protection Daily Digest Bulletin is available HERE To stay up to date with the latest US customs developments, it is highly recommended that members subscribe direct for the free email notification service available HERE. US TARIFF UPDATE 5 - U.S. Customs and Border Protection Daily Digest Bulletin US TARIFF UPDATE 4 - FTA / APSA initial response to the US Tariffs US TARIFF UPDATE 3 - Austrade resources US TARIFF UPDATE 2 - CGT Law commentary / Exempt HS Codes / Country rates / White House announcements US TARIFF UPDATE 1 - Federal Government Response LATEST MEDIA As part of our ongoing engagement with national media, The Australian Financial Review provided the opportunity for FTA/APSA to contribute to a feature article published on Friday 11 April 2025 – Trump trade war shakes up shipping and ripples to Australia, by reporter Jenny Wiggins. The article can be accessed HERE [AFR subscription required to access full article] The article examines the early impacts of the US-China trade war on global shipping and highlights the growing concern for Australian trade routes as blank sailings increase and container booking cancellations rise. "We are 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," said Tom Jensen. The piece also explores the potential for rising freight rates, with capacity tightening amid shifting demand patterns. While major carriers such as MSC and Maersk have yet to formally adjust services, Japan's Ocean Network Express has already cancelled a planned North American service. In parallel, the AFR draws a direct line between international instability and the fragility of Australia's domestic supply chain settings — reinforcing our long-held position that global shocks only exacerbate existing cost pressures at home. The article references our concerns over unregulated terminal access fees: "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 Tom Jensen. ADVOCACY Further to our previous update to members outlining FTA and APSA's written correspondence to Senator the Hon Don Farrell (Minister for Trade and Tourism) on Sunday 6 April 2025, we are pleased to advise that this week we held a follow-up meeting with senior advisors from the Minister's office. The meeting provided an opportunity to reinforce industry's support for the government's swift relief measures following the US tariff announcement, while also reiterating the urgent need to address structural issues within the maritime logistics system — as identified in the Productivity Commission's 2022 Review of Australia's Maritime Logistics System. Pleasingly, the Minister's advisors were receptive to our position and acknowledged the seriousness of the issues raised. They have committed to taking the matter forward internally, including discussions with relevant agencies.  As outlined in the FTA / APSA correspondence from 19 January 2023, FTA and APSA highlighted to the Minister the need to repeal of foreign owned shipping line exemptions from Australian competition law and well-considered regulation to specific landside commercial practices. Adding weight to this position, FTA and APSA pointed to the Australian Competition Consumer Commission (ACCC) latest Container Stevedoring Monitoring Report with Commissioner Anna Brakey on record stating "We have found there are likely market failures in the container freight supply chain which may warrant a policy or a regulatory response".  Furthermore, FTA and APSA again shared details providing evidence of $2 billion in incontestable charges imposed by contracted parties to foreign owned shipping lines.   At a time of significant uncertainty for the international trade sector, FTA and APSA highlighted the essential need for an additional government measure to address the Productivity Commission and ACCC identified market failures.   Tom Jensen - General Manager Freight Policy & Operations - FTA / APSA

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