SHIPPING diversions and new surcharges are already generating additional costs for Australian exporters as shipping companies react to heightened conflict in the Middle East, according to Australia's Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA).
The joint FTA-APSA statement said the Middle East remains an important trade and logistics partner, with the United Arab Emirates Australia's largest trade partner in the region, and a critical logistics hub for Australian cargo moving onward to Europe, Africa and South Asia.
"The operational impacts are clear — reduced air cargo capacity through hub closures, extended sea-freight routings and increased schedule volatility," FTA general manager freight policy and operations and representative of the APSA Tom Jensen said.