A timely article in The Age today ("Trump's tariffs cast $1.25 billion shadow over Victoria's budget") confirms what Australian exporters and importers have long feared—we are being squeezed from both ends.
View the full article HERE.
As Paul Zalai, Director - Freight & Trade Alliance (FTA) & Secretariat - Australian Peak Shippers Association (APSA) said in the piece: "It is impossible to predict the full impact as the goalposts keep moving. Shipping demand to the US is fluctuating weekly, with vessels and equipment being scheduled inconsistently. This volatility disrupts supply chains globally and creates uncertainty for Australian traders." "We must actively pursue emerging markets across Asia and urgently finalise a free trade agreement with Europe. Even with success in these areas, we are still vulnerable to global shipping disruptions. However, there are pressing domestic issues well within our control." While we can't set U.S. policy, we can deliver long-overdue reform at home by: - Responding to ACCC and Productivity Commission findings – Both agencies have pointed to structural market failures in the container supply chain that demand regulatory action.
- Regulating excessive landside charges – Bring accountability to Terminal Access Charges and Empty Container Park costs that traders have no ability to contest.
Removing anti-competitive protections – Repeal Part X of the Competition and Consumer Act to ensure shipping lines operate on a level playing field. - Backing our exporters – Support sectors hit hardest by rising costs and restricted global access and high domestic handling fees.
FTA/APSA has provided government with evidence of more than $2 billion in uncontested charges being imposed on Australian traders—costs that contribute to inflation, erode export competitiveness, and increase cost-of-living pressures.
At a time when shipping lines and their associated entities continue to post record profits, Australian exporters are being hit with rising logistics costs and deteriorating access to key markets. Meanwhile, import-related charges are flowing straight through to Australian consumers, further exacerbating cost-of-living concerns.
FTA/APSA continue to engage with key departments, regulators, and political leaders to press for meaningful reform—ensuring that supply chain costs are fair, transparent, and globally competitive. |