THE AUSTRALIAN | Shipping lines slap surcharges on shipping containers amid Middle East conflict

A new “war surcharge” on container shipping to the Middle East is raising concern across Australia’s export sectors, with costs of up to $US4000 per refrigerated container expected to flow through supply chains.

The Australian reported that the surcharge, introduced by major shipping lines including CMA CGM, comes amid escalating conflict in the region and applies even to cargo already in transit, leaving exporters with little ability to adjust pricing.

Industry groups have labelled the move “profit gouging”, warning it will impact the competitiveness of key exports and add pressure to an already challenging trade environment.

Grain Producers Australia Chair Barry Large said the scale and application of the surcharge raised serious questions.

“It sounds a bit draconian… how do you justify that? Is there some gouging going on?” he said.

With around $5 billion in goods shipped to the Middle East each year, including agricultural commodities, the added costs are likely to be felt across the supply chain, from exporters through to end markets.

The situation is also adding to broader concerns around input supply, with potential disruptions to fertiliser availability compounding pressure on Australian producers heading into key production periods.

Read more