AUSTRALIA’S peak shipping bodies have called on the federal government to urgently intervene on what they say are “massive, unregulated” shipping charges.
Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) are warning of a mounting trade crisis, with exporters being hit by the surcharges linked to conflict in the Middle East.
FTA and APSA say exporters are facing emergency conflict, war risk, and deviation charges of up to USD 4000 per container, often imposed without notice and after cargo has already been handed over.
They say fuel surcharges have surged by more than 70%, compounding the cost pressure.
“This is a perfect storm of global disruption and market imbalance with Australian exporters wearing the cost,” said Paul Zalai director FTA and secretariat APSA.
“Once cargo is on the water, businesses have no leverage. They are being forced to absorb charges they didn’t agree to, can’t verify, and simply can’t avoid."
Industry feedback highlighted what the two groups said was a stark reality, that exporters must pay or risk losing control of their goods.
"Shipping lines are increasingly invoking contract terms to impose surcharges after shipment, while ‘end-of-voyage’ declarations shift responsibility mid-transit, leaving exporters exposed to recovery, storage, and rehandling costs," Mr Zalai said. "For perishable goods, delays and diversions can result in total product loss.”
FTA and APSA have written to Prime Minister Anthony Albanese saying surcharges create an immediate cashflow shock, often resulting in budget overspend.
“Smaller exporters, particularly in agriculture and regional Australia, face escalating cashflow crises that threaten business continuity,” Mr Zalai said.
A report from FTA and APSA said the financial pressure was not limited to ocean freight. Emergency fuel surcharges were being applied across:
shipping lines with rapid and repeated increases having significant impacts on refrigerated containers;
air freight operators surcharges had risen 20–30%;
and domestic transport providers fuel levies had jumped up to 20% in weeks.
FTA and APSA general manager freight policy & operations Tom Jensen said it was no longer a single surcharge, it was a cascade of increases hitting exporters from every direction.
“These costs will inevitably be passed on to Australian consumers. It’s going to affect consumer prices,” he said.
Red meat and livestock exports to the Middle East and North Africa, which reached a record $2.2bn in 2025, are being severely disrupted.
The FTA and APSA statement said fruit and vegetable exports are similarly affected, with more than 86 tonnes of fresh horticultural products per annum exported to the Middle East, exporters are currently facing delays, diversions, and cessations.
CEO of Australian Horticulture Trade (AHT), Lesley Shield, said along with other agricultural industries, growers and exporters have been severely affected by the conflict.
“It has added significant costs to the supply chain, potentially leading to them being less competitive in what is already extremely competitive markets.”
Australian Dairy Products Federation CEO Janine Waller said dairy exporters are facing increased international freight costs of up to 50%.
“The Australian dairy industry exports about 36% of our milk production, making reliable access to international market critical for processor viability and farmgate returns,” Ms Waller said.
“For dairy exporters, handling perishable, temperature-controlled products, these disruptions extend beyond immediate cost pressures.
“Beyond the loss of insurance, delays, rerouting and uncertainty in cargo release can compromise product integrity, shorten shelf life and jeopardise contractual obligations.
“In addition to higher freight costs, exporters risk product spoilage, loss of market access, reputational damage and the write-off of entire shipments.”
The FTA and APSA are urging the government to introduce temporary, targeted support measures, including: a surcharge relief scheme via grants or rebates; baseline assistance of USD 2000 per 20-foot container and USD 5000 per 40-foot or specialised container; and access to short-term concessional finance to ease cashflow pressure.
“This is exactly the kind of extraordinary shock that warrants temporary government support—just as we saw during COVID,” Mr Zalai said.
FTA and APSA are also advocating for regulatory protections, such as a minimum notice period for new surcharges, similar to international standards, to restore what it says is fairness and predictability to Australian trade.
“If left unchecked, these cost pressures will flow through to reduced export volumes, lower farmgate returns, and broader economic drag,” Mr Zalai warned.
FTA and APSA have offered to work with the government to provide industry data, case studies, and policy options to support the need for what it says are urgent and longer-term solutions.