Middle East conflict triggers spike in Australian shipping costs
- 15 hours ago
- 2 min read
Australian exporters are being hit with sharp new shipping fees as global carriers introduce “war risk” and “emergency conflict” surcharges linked to tensions in the Middle East.
The added costs come after US and Israeli strikes on Iran and ongoing instability across the region. Some exporters are now paying up to US$4,000 (around A$5,600) extra per refrigerated container.
French shipping giant CMA CGM, which owns ANL in Australia, has rolled out an “Emergency Conflict Surcharge” from March 2. The fee ranges from US$2,000 for a standard 20-foot container to US$4,000 for refrigerated and specialised units. It applies to cargo moving to and from Gulf nations including the United Arab Emirates, Saudi Arabia, Qatar and Kuwait.
German carrier Hapag-Lloyd has also introduced a “War Risk Surcharge”, charging up to US$3,500 for refrigerated containers on affected routes.
Industry bodies Freight & Trade Alliance and Australian Peak Shippers Association say businesses were caught off guard, with some fees applying to cargo already in transit.
About $5 billion worth of Australian goods are exported to the Middle East each year, much of it agricultural produce such as meat, grain and fresh food. Exporters warn the sudden spike in costs will likely flow through supply chains, adding pressure to food prices and inflation.
Shipping companies say the charges reflect higher security, fuel and insurance costs, particularly around key routes like the Strait of Hormuz and the Red Sea. Some vessels are being diverted around Africa, extending travel times.
While analysts suggest global shipping capacity remains strong, exporters say the immediate financial impact is significant — with little time to renegotiate contracts or adjust pricing.
More updates to come on AusNewsLanka.
Comments