Welcome to the June Market Update.
As Australian retailers go into the traditional end of financial year sales period, for shippers, it’s full speed ahead with planning for keeping goods flowing in the new financial year. It’s also the time of year when we get a steady flow of big picture data that shows how the import and export sectors have been performing overall, beyond any short-term disruptions or spikes.
NSW Ports recently released some information and commentary on Port Botany and Port Kembla which are the busiest ports in NSW, handling millions of tonnes of trade every year. The container volumes into Port Botany have been tracking upwards, with a record set in November last year. At Port Kembla, overall growth in trade volumes has been of the order of 3.5%.
This demonstrates that overall, importers and exporters are continuing to succeed, even in a financial year marked by challenges including trade wars, geopolitical tensions, episodic congestion and industrial unrest. We’re also seeing positive signs in relation to carriers returning to improved schedule integrity and pricing that more closely reflects actual demand.
Of course, as you prepare to turn the page in the virtual ledger to start the new financial year, try and make time to speak with your Client Service Specialist or Client Success Manager to ensure you get the tailored advice that will help you nail the detail in your supply chain planning.
North Asia
The potential easing of tariff tensions between the US and China has carriers optimistically proposing a GRI in the first and second halves of June. This would see rates move from USD 700+ TEU to potentially USD 800+ TEU from start of this month, however it is not likely to succeed in full, if at all. ANL has also announced a rate restoration to USD1150 TEU from 15 June, and fellow A3 partners OOCL and COSCO have proposed a GRI of USD300 per TEU effective also from 15 June.
However, there is no clear market signal showing it will succeed. Some non-A3 carriers are already under pressure to fill their available space and are not seeing market demand. For this reason, they are retaining rates at USD 600-650 per TEU and some are even going lower week by week.
Given there are also no blank sailings announced for June, unless something major changes to cause demand for space to rise, the carriers can’t make a case for high prices. Generally, the market is somewhat fickle right now, and rate differences between carriers are widening in ways we don’t usually see. We’ll be keeping a close eye on how the prices move, and keep clients updated.
Landside, a shortage of trucking is still contributing to high prices for container pickup and also to delays, so factor that into your forward planning.
Space ex-Ningbo is likely to increase in the near future, with A3 consortium planning to upgrade their A3N service with a port call at Ningbo. This will mean there are two sailings a week ex-Ningbo via A3C and A3N service.
South East Asia
May was a tranquil month in this market, with no GRI implemented on shipments from Southeast Asia to Australia and New Zealand. The carriers are attempting a GRI this month, announcing a rate restoration effective 15 June of USD 300 per 20’GP, USD 600 per 40’GP/HC and USD 10.00 per W/M Minimum 1 CBM (LCL). We do not anticipate this will succeed in full and will keep everyone updated as to how it plays out.
Pakistan
In early May, India was reported to have launched missiles into Pakistan, resulting in fatalities and also in reprisals. There were some concerns that the conflict may cause disruptions at ports in the region, however, this did not eventuate.
What is causing disruption to supply chains and logistics planning is the need for carriers to route cargo from Pakistan via routes other than India. A ban remains in place on cargo from Pakistan being routed via India ports, so as a result, vessel schedules and routes are being rearranged, and cargos are moving via Colombo and Salalah.
Carriers are more broadly reassessing their schedules in the region, and many are now starting to impose emergency operational surcharges on cargo moving into and out of Pakistan. These surcharges are in response to hikes in insurance premiums, rerouting expenses and longer transit times.
MSC, for example, has introduced a USD 800 per container fee for Pakistan exports to Europe, the US and Africa, and an extra USD 300 per container charge for intra-regional (Asia region) trade. Maersk has imposed a surcharge of USD 500 for exports to all major markets, and USD 300 for import containers into Pakistan.
The ban on sending goods via India has also resulted in severe congestion at Pakistan’s main container ports of Karachi and Port Qasim. Major shipping lines including CMA, CGM, MSC and ONE have reportedly halted direct calls to these ports, exacerbating the cargo backlog.
Europe & UK
May saw worsening port congestion in Europe, particularly at Bremerhaven, Antwerp and Hamburg. This is causing delays averaging five to six days, sending a ripple effect across the landside transport sector and importer and exporter schedule planning.
The situation is also exacerbated by low water levels in the Rhine, which is causing limited barge capacity on some of the continent’s busiest inland transport routes.
Shippers are being warned to expect the situation to continue, as there are few immediate solutions available. The combination of a surge in front loading of exports to the US to beat tariffs and labour shortages will take time to resolve.
Europe is, however, not alone in the congestion struggle. Similar issues are emerging in in Shenzhen, Los Angeles, and New York as global supply chains shift in response to US policy adjustments.
The carriers are taking advantage of the market tenor, announcing increases in rates and peak season surcharges starting this month for the European market.
North America
US Customs and Border Protection have been giving a very important reminder for everyone in the import and export sector with recent turn backs of shipments due to mis-declared items. Reports have said whole truckloads have been rejected and denied entry on the basis of one item being mis-declared.
China-origin goods are particularly in the spotlight for this, following the restrictions on the de minimis exemption which we explained in previous newsletters.
Given the current rush of shipments from China to the US in response to the 90-day reduction in US tariffs on Chinese imports from 145% to 30% US Customs are likely to be kept very busy checking shipments in the coming weeks.
The carriers have responded to the reduction in tariffs with a play for a rate increase, with GRIs announced for shipments into the US, and a likelihood that there may soon be further surcharges as capacity constraints collide with the surge in shipments.
Air cargo in the US is also facing some challenges, with a surge in shipments exceeding the capacity of air cargo infrastructure at major airports and causing bottlenecks.
The whole situation may return to some kind of equilibrium in the coming months, as the US Court of International Trade has ruled that the extraordinary Trump tariffs on reciprocal trade are illegal on the basis he has over-reached executive authority. While the Oval office has appealed, the case may yet escalate to the Supreme Court.
Basically, watch this space, and remember you can always reach out to your Client Success Manager or Client Service Specialist for the latest information and advice.
Australia Ports
DP World Sydney and Melbourne
DP World has implemented OneStop Modal at its Sydney and Melbourne facilities, supporting digitisation of major operational processes including container management. The system also improves real-time visibility and data exchanges with road and rail linkages to the port operations. From 2 June, when the new system went live, it also integrates with a OneStop Vehicle Booking System, which aims to enhance the precision of scheduling at the gate, reduce congestion and improve truck turnaround times. The system is also integrated with OneStop Rail Module, supporting more efficient and coordinated movements between rail links, container parks and the port terminals.
In addition, rail links at Sydney port are set to be boosted, with the announcement NSW Porrs will co-invest with DP World in a new rail terminal at the DP World facility. Four new rail sidings are planned, which are expected to enable throughout put at the terminal to grow to 1M TEU per year.
Brisbane
Patrick Fisherman Islands terminal is having a brief closedown of all operations on Monday 9 June from 6am to 11pm for yard infrastructure and system maintenance. Advance notice was given, so disruption should be minimal.
Fremantle (Perth)
Charges are increasing at Fremantle Port from 1 July 2025. This has been positioned as a partial cost recovery measure for upgrades to infrastructure and facilities under the 2027 Strategic Plan. Increases is wage costs and increasing internal resourcing have also added to the port’s costs, as have strengthening security and compliance measures.
A range of charges and costs are affected including increases in container unit pricing, tariff rates, mooring charges and pilotage services, as well as the introduction of flat fee pricing for Out of Gauge cargo. Full details are available here.
V3 Methyl Bromide Fumigation
With the new Version 3.0 of the Methyl Bromide Fumigation Methodology coming into effect from 1 May 2025, please ensure you are across the revised minimum requirements for fumigation certificates for treatments performed according to the methodology.
The Department of Agriculture, Forestry and Fisheries has issued a reminder to the industry via Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) that all fumigations from 1 July 2025 must comply with V 3.0 and provide the new documentation. See here for Templates that meet the new requirements.
For further information about these changes, refer to the following webpages:
- Methodologies and documents for biosecurity treatments
- Methyl bromide fumigation methodology – Prepare now for 2025 update
- Minimum documentary and import declaration requirements policy
- Help card: How to login to Learnhub (For approved arrangement class 19 accredited persons)
For further details about version 3.0 of the Methyl Bromide Fumigation Methodology, visit the Departments website.
Global air cargo demand soaring
The International Air Transport Association (IATA) has released data for April 2025 that shows global air cargo markets are growing. The total demand measured in cargo tonne-kilometers rose by 5.8% over the 12 months from April 2024 and this was closely matched by an increase in capacity of 6.3% over the same period.
Some of the reasons for the growth include some easing in jet fuel prices, and also in recent months the dramatic rise in cargo volumes heading from Asia to the US as importers in the US look to beat incoming tariffs.
Because capacity has been matching demand so closely, prices and space availability have both remained relatively steady, which is good news for those importers and exporters who rely on air freight for high-value, low-volume just-in-time cargo movements.
Suez Canal
There are cautious signs of optimism in the Red Sea region with last month’s US-Houthi ceasefire agreement resulting in a cessation of rebel attacks on commercial vessels.
The Suez Canal Authority is now looking to bring carriers back to the route, with incentives including a 15% discount on container ship transits for vessels 130,000 tonnes or above. CMA CGM has been one of the first to commit to sending a vessel via the route and there is some suggestion it may increase the number of vessels, particularly for the Sia-Europe backhaul route.
Returning to the Suez route will deliver shorter transit times and reduce costs, as the alternative Cape of Good Hope route is both longer and more expensive. Not all carriers are ready to return however, among them Maersk, which has been quoted in the freight media as citing high war-risk insurance premiums as a potential deterrent.
Certainties in times of change
The shifting sentiment on returning to the Suez Canal really reflects the importance of trust when planning supply chain operations. Whether the ceasefire can be trusted is the question, and some carriers will remain cautious longer than others, probably influenced by their own stakeholders including their insurers and their customers. Similarly, rapid changes in global trade volumes in response to sudden shifts in US tariff policy also reflects the degree to which international relations are demonstrating mutual trust.
We know that for your new financial year to be prosperous, retaining the trust of your customers means ensuring your supply chain works efficiently, transparently and is resilient to changes beyond our borders. That’s why your Client Success Manager or Client Service Specialist are only ever a phone call away – because when you succeed, we succeed too.
