TASMANIAN importers and exporters are facing unavoidable increases in shipping and landside logistic costs as Middle East chaos drives fuel prices through the roof.
While news of additional shipments due to arrive in Australia by tankers, mostly from the USA, have allayed some fears of bunker, diesel and petrol unavailability, Bass Strait overnight freight operators SeaRoad Shipping and Strait Link have introduced emergency fuel surcharges and warned these will have to be reviewed with increasing frequency.
Meanwhile, ro-pax operator TT Line is still determining its position, with a Spirit of Tasmania spokesman saying “the ongoing situation in the Middle East that had created fuel price volatility has ultimately led to dramatic price increases in Australia. The TT-Line Board is considering a number of options, including a fuel surcharge for new passenger and passenger vehicle bookings.”
With a reported fuel burn of 77,000 per crossing of Spirit of Tasmania I and II and prices doubling in the last 10 days, the decision can only go one way.
Strait Link, in a notice to customers, said:
“Our industry entails various modes of transport, incorporating interstate and intrastate rail, sea freight, and road movements. From these modes of transport, we have reviewed the cost index and confirm that our FSC will be 39.92% effective from Monday 30 March 2026.
“Over recent weeks, global fuel markets have experienced significant volatility, driven by ongoing geopolitical tensions in the Middle East, as well as broader supply chain uncertainties across international energy markets. These developments have resulted in a sharp increase in road diesel and marine fuel prices, which are key inputs to our operations.
“As you are aware, our FSC mechanism is designed to reflect movements in underlying fuel costs. The latest adjustment reflects the sustained increase in fuel prices observed over the past month and ensures that pricing remains aligned with the cost of delivering our services.
“In addition, given the current level of market volatility, the Fuel Surcharge mechanism will be reviewed fortnightly on a temporary basis to ensure it remains appropriately aligned with underlying fuel movements and reflects any changes in market conditions in a timely manner. Any significant movements in price (either upwards or downwards) will need to be applied,” Strait Link advised.
Rival SeaRoad Shipping announced on 15 March its surcharge would increase to 23.92%, effective 1 April which is an increase of 2.45%. Searoad Group executive chairman Chas Kelly told DCN the company would increase the frequency of adjustments to weekly “and I see a big jump coming. The price is not the issue… it is availability… price doesn’t matter if you can’t get [fuel]”.
SeaRoad Logistics will be increasing its fuel surcharge to 37.94%, from 30 March.
Freight Trade Alliance Tasmania representative and The Ship Consultancy owner Brett Charlton told DCN some shippers (inwards and outwards) are beginning to consider ordering more stock to see them through on the back of concerns…. “not unlike the spiky flu thingy we forgot about for a while”.