UPDATE AS AT 20/03/26 18.00
IRAN HOSTILITIES AND CURRENT IMPACT ON AUSTRALIAN FOOD & WINE EXPORTS
Dear Customers,
To assist with your planning and preparations, we have compiled an update on the current situation in Australia regarding the impact of the ongoing conflict in the Middle East.
At this stage, supply continuity remains stable. However, we are beginning to see increasing cost pressures across the supply chain, particularly relating to fuel and freight.
We are receiving a high volume of enquiries from government bodies, customers, and suppliers, as all parties seek to better understand the current position and short-term outlook.
We are now starting to see increased export costs, primarily through shipping and fuel surcharges.
Manufacturers and Suppliers
We are in regular contact with our major manufacturers and suppliers, and at present there is no immediate concern regarding their ability to manufacture and deliver stock.
That said, cost pressures are emerging. These are primarily driven by increases in domestic road freight and the introduction of emergency fuel surcharges from shipping lines (refer to Sea Freight section below).
Diesel fuel is the primary concern. Prices have increased significantly—from approximately AUD $1.80 per litre pre-hostilities to around AUD $3.00 currently—and supply remains tight. In a worst-case scenario, food production and exports are classified as essential services, meaning fuel availability for transport should be maintained. However, higher transport and delivery costs are expected, and these are likely to be passed through by manufacturers.
Sea Freight
We are now seeing the introduction of new surcharges, including Emergency Fuel Surcharges (applicable to all shipments) and Emergency Conflict Surcharges (applicable to shipments to the Middle East).
At present, shipping lines are not accepting bookings for the Middle East.
We are also receiving reports that UAE ports are experiencing significant congestion, with containers backing up. This may lead to equipment shortages (shipping containers) in other regions.
Current conditions by region:
For LCL (Less than Container Load) shipments, a surcharge of approximately USD $5.00/kg has been introduced.
Sea freight rates continue to change frequently, with an overall upward trend. The surcharges outlined below represent current information and are expected to be updated again in April.
| Emergency Fuel Surcharge | Emergency Conflict Surcharge | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 20’ | 40’ | 20RF | 40RF | Applicable | 20’ | 40’ | Reefer | Contract / Region | Applicable | |
| CMA | 75 | 150 | 90 | 180 | 16-Mar | 2000 | 3000 | 4000 | to Middle East | 2nd March |
| MSC (Asia) | 74 | 148 | 111 | 222 | 11-25 Mar | |||||
| MSC (TTAS) | 166 | 332 | 249 | 498 | 11-25 Mar | |||||
| MSC (EU) | 147 | 294 | 221 | 442 | 11-25 Mar | |||||
| MSK | 100 | 200 | 150 | 300 | 25-Mar | 1800 | 3000 | 3800 | To Middle East | Existing Bookings |
| HPL | 70 | 140 | 100 | 200 | 23-Mar | |||||
| *Pricing in USD | ||||||||||
Additional updates:
Further advice on 2026 NACs will follow
Air Freight
Air freight conditions remain highly dynamic, with rates and availability changing almost daily. All shipments are currently quoted on a case-by-case basis, with pricing typically valid for a maximum of one week.
We are seeing increased demand for air freight into North America and Europe, particularly ex-Asia, which is placing pressure on capacity.
Current conditions:
Passenger traffic: Rising passenger volumes are further limiting available cargo space, as passenger luggage takes priority.
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