News

Fracht Australia Logistics News - July 2025

1/7/2025

AROUND THE WORLD 

• FRACHT GROUP UK HAS MOVED. As of 16 June 2025, Fracht UK’s new address is: Fracht UK Ltd, Fort Dunlop, Unit 111-113, Fort Parkway, Birmingham B24 9FD. Please get in touch with our customer service team if you require any further information about our services from / to the UK.
• INDUSTRY BODY, SHIPPING AUSTRALIA believes the Strait of Hormuz is likely to remain open, despite the escalating conflict. Several media reports have raised the prospect the key waterway could close. Shipping Australia downplayed these suggestions, noting the fact the Strait remained open during the ferocious Iran-Iraq war during the 1980s, where both countries targeted commercial vessels in the Gulf in the so-called Tanker War, but Hormuz was never completely closed.
• NEW MIDDLE EAST CONFLICT brings airspace closures, flight chaos and oil price worry. Airspace closures and rising fuel prices are making life more challenging than ever for the airline sector – but freight markets in general are not seeing a huge impact, however, closures to airspace around Israel, Iran, and Iraq, following the new outbreak of hostilities, has led to schedule changes and longer routes for some carriers.
• RETURN TO SUEZ CANAL ON HOLD. The Israel-Iran war may have effectively quashed hopes that the Suez Canal may soon be a viable routing for commercial ships – but that maybe a good thing for European shippers gearing up for the peak season. At TOC Europe 2025 in Rotterdam, supply chain experts warned that reopening the Suez Canal after the Red Sea crisis could trigger months of chaos. They cautioned that if carriers resume transit simultaneously, it will disrupt delivery sequences, causing severe congestion in European ports and ripple effects across Asia. 

SEAFREIGHT NEWS 

• GENERAL RATE INCREASES CONTINUE. Last week there were confident predictions of China-Australia FAKs doubling within a month, with high expectations for July. While there doesn’t seem to be any further China-Australia voyage blankings foreshadowed since the last update, and no direct evidence those vessels are being redirected elsewhere, trade managers are concerned the on-again, off-again, on-again US tariff situation that, according to some reports, has seen a backlog of up to 700,000 TEU (twenty foot equivalent units) awaiting urgent shipment from China to the US to beat restrictions, will impact local customers.
• CONSORTIUM UPGRADES A3N SERVICE. The partners in the A3 consortium, ANL, COSCO Shipping and OOCL, will add a seventh ship to the A3N loop in July, upsize the existing fleet and include Ningbo in the port rotation. A3N covers Japan, Korea, China and Taiwan and calls Melbourne, Port Botany and Brisbane on a weekly basis, currently using six ships of 5,816 TEU to 6,358 TEU, with four provided by ANL / CMA CGM and one each by the other partners. Under the new arrangement ANL / CMA CGM will contribute a fifth vessel.
• RO-RO OPERATORS DEFINE GHG INTENSITY GUIDELINES. The global Ro-Ro Community, a group operating under the umbrella of US-based not-for-profit Smart Freight Centre, has developed agreed guidelines for calculating Greenhouse Gas emission intensity for car carriers and similar ships. The Governance, Risk and Compliance includes Japan’s Eastern Car Liner, K Line, MOL, NYK and Scandinavia’s Wallenius Wilhelmsen as well as ClassNK which, together with the Smart Freight Centre, aims to reduce greenhouse gas emissions in the logistics sector. The guidelines introduce a common calculation method, enabling shippers to accurately measure Scope 3 emissions, and will further promote decarbonization in the shipping industry, the group members say.
• MOL RECEIVES LATEST DUAL-FUEL METHANOL CARRIER.  MITSUI OSK Lines (MOL) announced on 2 June that it took delivery of a newbuild methanol dual-fuel methanol carrier at shipbuilder HD Hyundai Mipo. The 47,960 DWT Kohzan Maru VII will serve the Mitsubishi Gas Chemical Company (MGC) under a long-term charter by MOL from Eifuku Kaiun Co. The vessel is the first methanol dual-fuel ocean-going vessel to sail under a long-term charter by a Japanese charterer. Back in 1983, MOL and MGC introduced Japan’s first methanol dedicated carrier, Kohzan Maru, pioneering safe and efficient marine transport of methanol.
• COSCO LAUNCHES AUSTRALIA PCTC SERVICE. COSCO SHIPPING Car Carriers, a COSCO Shipping Group subsidiary established by COSCO SHIPPING Specialized Carriers and Shanghai Port Logistics, has inaugurated its first China-Australia ro-ro / vehicle service with the arrival in Brisbane of the 7,000 CEU (Car Equivalent Units) Huang He Kuo. The voyage from Shanghai to Brisbane, Port Kembla, Melbourne, Port Adelaide and Fremantle is a trial but the service is expected to quickly move to monthly and then weekly frequency, with Xiamen added as a load port. The three-month-old Huang He Kuo is fitted with 12 decks and a 200-tonne capacity ramp and is one of 24 7,000-8,600 CEU PCTCs COSCO Car Carriers is taking delivery of between 2024 and 2026. All are dual fuelled (LNG). This will take the total fleet to 30 vessels.
• CREW FORCED TO ABANDON SHIP in latest fire on vessel carrying EV’s. The danger associated with carrying electric vehicles was thrust back into the spotlight in early June, when 22 crew were forced to abandon ship in the early hours after fire broke out on their car-carrier off the Alaskan coast.  Some 3,000 vehicles, including 751 EV variants – 70 full EVs and 681 hybrids, according to the US Coast Guard – were en route from China to Mexico when fire broke out aboard the Zodiac Maritime-operated vessel Morning Midas. A US Coast Guard statement reported Zodiac claiming “smoke was initially seen rising from the deck loaded with EVs”. Zodiac told media that, discovering the fire, “the crew immediately initiated emergency firefighting procedures using the vessel’s onboard fire suppression systems, however, despite their efforts, the situation could not be brought under control. In consultation with the US Coast Guard, all 22 crew were safely evacuated via lifeboat, and have been transferred to a nearby merchant vessel.”
• EXPLOSIONS AND A MAJOR FIRE has been reported on a Wan Hai container ship off the coast of Kerala, in southern India on 9 June. Of the 22 crew members, mostly Chinese and Myanmar nationals, 18 who had jumped into the sea have reportedly been rescued by the Indian coastguard, sources said. Some are said to have been injured. Wan Hai 503, reportedly serving intra-Asia trade, is the latest casualty, just days after MSC Elsa 3 sank off Cochin. The box ship was en route from Sri Lanka’s Colombo port to Nhava Sheva in India.
• APRIL DECLINE FOR BOX VOLUMES.  Australasia and Oceania container liftings fell back in April 2025, for both imports and exports compared to the previous month, following a fairly normal seasonal pattern. The latest statistics from London-based Container Trade Statistics show combined imports totalled 352,510 TEU in April 2025, versus 364,276 in March, and 352,284 in April 2024. Exports were 263,671 TEU this April, compared to 272,646 TEU in March, and 249,927 TEU in April 2024.
• OPTIMISING OCEAN CURRENTS to create a cleaner shipping sector.  A ‘Google Maps for the sea’ is the description of a new algorithm aimed at improving shipping’s environmental performance. The algorithm seeks to allow the shipping industry to better use ocean currents, thereby minimising energy and maximising environmental standards. It was developed by Associate Professor Shane Keating of the University of New South Wales, an expert on eddies and circular currents, using advanced ocean models and artificial intelligence. “With better ocean forecasts, ships can use the power of currents as they travel, reducing fuel use and cutting emissions,” A/Prof Keating said. “The algorithm is like a Google Maps for the sea, giving the most efficient route in real time based on the behaviour of ocean eddies.” 

AIRFREIGHT NEWS 

• IATA REVISES PREDICTIONS FOR 2025 air cargo performance downwards as already mentioned in Fracht’s June Newsletter. Trade body IATA has revealed that it expects a total of 69m tonnes of air cargo to be flown over the course of this calendar year. This figure would be 0.6% up on 2024, but well below the previously projected volume of 72.5m tonnes. The industry saw an 11.3% rate of growth in air cargo volumes last year. Airlines’ cargo-based revenues are predicted to fall to USD142bn this year, down 4.7% on the 2024 figure. The forecast declines are based largely on the expected impact of reduced GDP growth resulting from what IATA described as “trade-dampening protectionist measures”, including tariffs.
• LUFTHANSA CARGO TARGETS A RETURN TO THE TOP THREE. Lufthansa Cargo is targeting a return to the top three global air cargo carriers in terms of volumes over the coming years. Speaking at the Air Cargo Europe event in Munich, chief financial officer Frank Bauer, who will soon move over to the role of chief operating officer, explained that 20 years ago, Lufthansa Cargo was the largest carrier in the world in terms of cargo tonne km. Over time, the airline lost its position in the leaderboard and fell to seventh place. However, last year the carrier group climbed one spot to position sixth on the back of 13.5% demand growth. In the first quarter of this year, the carrier climbed further to the fourth spot as volumes improved by a further 8.9% year on year. “Our ambition is to get back to the top three, and then we take it from there,” said Bauer.
• AIR CARGO ‘PIGGYBACKS’ GLOBAL UNCERTAINTY.  Ocean and air freight analytics platform Xeneta has released its latest air cargo market update for the month of May 2025. While international trade continued to flow in May and global air cargo volumes rose +6% year-on-year, market sentiment and concerns over what comes next saw airfreight spot rates decline for the first time in a year. Midway through the month, the global air cargo market appeared to have dodged a perfect storm as the US-China 90-day tariff truce began on 14 May after the escalating retaliatory tariffs since April. The US administration lowered its additional tariffs on China from 145% to 30%, while China responded by decreasing its tariffs on the US to 10%.
• QATAR AIRWAYS RESUMES FLIGHTS, but Middle East disruption continues. Qatar Airways has restarted flights from Doha after the country’s airspace was closed due to Iran launching missiles against US bases in Qatar and Iraq. In a notice issued on 24 June, the airline confirmed the reopening of the country’s airspace but warned of ”significant delays” to its flight schedule as operations got back underway. “We are working tirelessly with government stakeholders and the relevant authorities to restore operations as quickly as possible,” the airline said in a statement. 

OCEANIA PORTS AND AIRPORTS 

• VICTORIA GREEN-LIGHTS GEELONG LNG TERMINAL. Victoria’s Minister for Planning, Sonya Kilkenny, has released her assessment of the Environmental Effects Statement for the proposed Viva Energy Gas Terminal Project in Corio, Geelong. Ms Kilkenny found the potential impacts of the LNG import project can be managed with strengthened environmental management practices and if amended mitigation measures are adopted. This assessment advances the project towards Viva’s commercial decision to move forward, pending further regulatory approvals.
• PORT OF BRISBANE UNVEILS VISION 2060. Strengthening the Queensland economy, future-proofing trade and supporting the transition to a more sustainable and efficient port are key aims of Vision 2060, a plan or roadmap for the Port of Brisbane. The roadmap was announced this week with three key themes or ‘horizons’. These are listed as: Seamless Connectivity, Clean Energy, and Designed for Future Generations. Chief executive Neil Stephens said Vision 2060 was about anticipating and leading change.
• NANCY BIRD WALTON AIRPORT OFFICIALLY UNVEILED. Western Sydney International Airport (Nancy-Bird Walton) Airport is officially complete, with the terminal formally unveiled. WSI chief executive Simon Hickey was joined by Prime Minister Anthony Albanese and infrastructure minister Catherine King as well as senior executives from airport key partners including Qantas, Singapore Airlines and Menzies Aviation to celebrate this major milestone event. “WSI is on the precipice of launching a seamless and stress-free airport experience unlike any other in Australia, giving our global city a 24-hour international gateway that will continue to create significant economic opportunities for all of Greater Sydney,” Mr Hickey said.
• PORT OF MELBOURNE and its contractors have completed Stage One of the Swanson Dock West Remediation Project and returned Berth 1 to full use by tenant DP World. In launching the project in mid-2022, PoM noted that SDW is critical infrastructure comprising a 944-metre wharf with three container-handling berths, which were constructed in several stages between the 1960s and 1980s. “The existing SDW wharf is of varying ages and forms of construction. Sections of the wharf are close to or beyond the typical design life of 30 years (standard design life utilized at the time) and as a result, major remediation and asset intervention is required,” PoM said.
• MINISTER VISITS NEWCASTLE for logistics precinct announcement. New South Wales environment minister Penny Sharpe has visited Port of Newcastle to announce AUD115.5 million to build the Newcastle Logistics Precinct at the former BHP Steelworks Intertrade site. The precinct, part of the 2025-26 budget, is to provide portside storage for equipment needed for renewable energy projects across NSW, including the renewable energy zones. Equipment is to be stored on a newly paved laydown area before being loaded on to heavy vehicles. It will then be transported to energy projects using the state road network. Ms Sharpe said the logistics precinct was important as the state moved to a future with clean energy. 

CUSTOMER SERVICE 

If you would like further information about any of the above items, please contact one of our friendly Fracht Team members at fracht@frachtsyd.com.au