We would like to provide you with with an update on current developments impacting the logistics industry and international trade.
Fuel Surcharges
Surcharges have been a part of the logistics industry at the international level for a significant period of time, particularly those employed by shipping lines (bunker) and airlines (fuel). These surcharges were introduced to address highly volatile and fluctuating fuel prices.
It therefore comes as no surprise that fuel-related cost pressures are now impacting Australia, particularly as a result of the conflict in the Middle East. These conditions are now affecting both domestic cargo arrangements and international supply chains.
Across both supply chains, transport operators are competing for available fuel within a wholesale and retail price structure. This competition is also linked to public sector transport requirements as well as private sector mining and agricultural activities.
As previously advised, Cable International continues to work closely with its transport contractors to provide timely information and commentary on international cargo handling operations across all aspects of the Australian supply chain, including imports, exports, and ancillary services relating to client delivery and container handling.
We are now receiving fuel surcharge notifications from transport operators with validity periods as short as seven (7) days. Operators have provided similar commentary:
It is no longer feasible to continue absorbing these costs without impacting service quality and operational viability.
Fuel surcharges are currently ranging from 32% to 44% of carriers’ base cartage rates. While Cable International has, as previously advised, held rates to date, these increases will now need to be passed on as they are received.
If you have any concerns about how these conditions may affect your shipments or costings, please do not hesitate to contact our office. We are closely monitoring the situation, over which both transport contractors and ourselves have limited control.
Australian-European Union Free Trade Agreement
After a lengthy gestation period, Australia and the European Union (EU) have reached agreement on a Free Trade Agreement following eight years of negotiations.
While both parties recognise that the agreement will support Australia–EU security and defence partnerships within a growing economic and strategic relationship, significant administrative work remains to be completed. Implementation is therefore anticipated around 2028, as the EU undertakes required domestic processes.
There are significant benefits for both parties, particularly in reinforcing long-standing rules-based trading arrangements at a time when such frameworks are under increasing global pressure.
For Australia, it is expected that manufacturers and the agricultural sector will benefit from the elimination of tariffs on agreed commodities. New and expanded quotas for agricultural exports also present meaningful commercial opportunities, despite existing sectoral sensitivities within the EU.
Matters relating to intellectual property rights and the naming of certain dairy and wine products have been addressed, with agreed phase-out periods for specific commodities.
In a time of uncertainty in international trade, the zero-tariff treatment of Australian mineral resources imported into the EU—including those deemed critical—will provide long-term stability and support renewable energy and investment outcomes for both regions.
Additionally, improved access across education, tourism, and recognition of professional qualifications will enhance market access opportunities between both economies.
This agreement will become another addition to Australia’s growing portfolio of free trade agreements, further reinforcing the importance of rules-based trading principles aligned with the World Trade Organization.
