MIDDLE EAST CONFLICT Update 11 - Fuel Security, Insurance best practice, and Media supporting Advocacy

Sunday, March 29, 2026

Over the past week, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA), together with member associations, have actively engaged with government, media, legal and insurance executives to address critical pressures on the freight and logistics sector. Our focus has included:

  • Fuel security: Ensuring timely, accurate, and publicly available updates on fuel supply forecasts, regional availability, and emerging pressure points.
  • Insurance best practice: Guiding members on risk management and obligations where operational disruptions affect cargo, transport, and coverage.
  • Media supporting advocacy: Leveraging national media coverage to highlight industry challenges and reinforce calls for government transparency and structured communication.

These combined efforts strengthen our advocacy and provide members with the information and guidance needed to navigate ongoing supply chain pressures.

Fuel Security

FTA and APSA, alongside the Container Transport Alliance (CTAA), participated in confidential briefings on fuel security and supply with the Federal Minister for Infrastructure & Transport, Catherine King, on Thursday, 26 March, and with the National Coordination Mechanism (NCM) on Friday, 27 March 2026.

At both briefings, FTA and APSA strongly emphasised the urgent need for clear, consistent and publicly available communication explaining members requirie timely and accurate information beyond media reporting to support informed decision-making and to minimise disruption to Australia's freight and logistics. Specifically, we have called on the government to implement regular (preferably daily) public updates outlining fuel supply forecasts, regional availability and emerging pressure points across the supply chain.

We expect a detailed update following the National Cabinet meeting tomorrow Monday, 30 March 2026, and will continue to advocate for ongoing, structured communication to industry.

In the interim, we greatly appreciate the commitment from the office of the Minister for Infrastructure & Transport to provide an in-person update, with a departmental representative, at the Tasmanian Freight & Logistics Forum on Wednesday, 22 April 2026.

Insurance best practice

We would like to sincerely thank executives from Mills Oakley LawyersTT Club and Logical Insurance Brokers for the comprehensive Q&A session hosted by FTA and APSA on Thursday 26 March 2026 - recording available by registering HERE

During this event, reference was made to the following resources:

Media supporting advocacy

FTA and APSA continue to partner with member associations to lead the supply chain industry's voice to mainstream media - refer HERE

Most recently, coverage was achieved in leading international publication The Load Star Australian forwarders seek aid as surcharges and 'dumped' boxes drive costs up - The Loadstar.

Of particular significance, we partnered with The Australian on an extensive front-page feature in the Business section of The Weekend Australian, published yesterday 29 March 2026, titled SOS from shipping users as fuel bills lift.

This prominent national coverage reinforces the urgency of the issues being raised and amplifies the concerns of industry at a critical time. The following extracts are central to supporting and advancing our ongoing advocacy efforts.

SURCHARGES

On top of the emergency and wartime surcharges, exporters have been infuriated by the fact many of these fuel cost increases were made retrospectively, so that ships that set out for the Middle East weeks or months ago also attracted the new charge.

This month, Freight & Trade Alliance labelled the surcharges as "profit gouging" which will impact Australia's biggest exports to the region such as beef, meat and vegetables. And earlier this month, The Australian reported that major shipping group CMA CGM had implemented an "emergency conflict surcharge" of $US2000 per 20-foot dry container, $US3000 per 40-foot container and $US4000 for a refrigerated or special equipment container.


SHIPPING LINES RECLAIMING POWER

"Australian importers and exporters are facing a renewed surge in supply chain costs, driven by rising freight rates, fuel (bunker) costs, reduced air cargo capacity, and ongoing service reliability issues," co-founder and director Paul Zalai said.
 
He said foreign-owned container shipping lines were regaining pricing power as capacity tightens. "At the same time, domestic supply chain costs are escalating, with fuel surcharges and additional fees being applied across transport, terminals, and container parks.
 
"We're seeing a rapid escalation in costs across the entire supply chain, and it's hitting Australian importers and exporters from every direction. Foreign-owned container shipping lines are reclaiming pricing power in a tightening market, pushing up costs and amplifying inflationary pressures across the economy."


Mr Zalai said cancelled or skipped sailings by shipping lines were increasing, adding to the pressure on Australian exporters.
"This is a challenging environment for businesses trying to plan ahead."


CALL FOR REFORM

He said the crisis was further evidence that major reform was needed on the waterfront. "Market failures have been clearly identified by both the Productivity Commission and the ACCC, yet stevedores continue to exploit the imbalance – imposing excessive landside charges and rubbing salt into the wounds of all Australians facing rapidly rising living costs."
 
The industry group has written directly to the Prime Minister, as well as Treasurer Jim Chalmers and other ministers to request financial assistance for exporters.
 
"FTA and the Australian Peak Shippers Association have received extensive feedback from members that Australian exporters are facing significant, unbudgeted cost impacts arising from shipping disruptions linked to the ongoing conflict in the Middle East. This event underscores a clear market imbalance, where extraordinary external shocks, such as the pandemic and now war, have transferred disproportionate cost and risk onto the Australian trade sector, with little practical ability for exporters to mitigate or avoid these impacts," the letter said.
 
The industry groups have specifically raised with the federal government the unilateral imposition of fuel surcharges on its members, often with little notice. Australian exporters also had no way to confirm these were a genuine attempt to recover costs.
 
"The terms and conditions of the bill of lading permit shipping lines to vary charges once cargo is received, but this mechanism is now being invoked frequently, broadly and without transparency. Australian shippers have no meaningful ability to verify whether these charges reflect genuine cost recovery or profit expansion, particularly when cargo remains in the custody of foreign-owned container shipping lines."

Previous Updates

Paul Zalai - Director FTA / Secretariat APSA