News

Fracht Australia Logistics News - May 2026

1/5/2026

AROUND THE WORLD

• SPOT CONTAINER FREIGHT RATES ROSE sharply across major east–west trades as carriers moved to mitigate the impact of rising fuel prices linked to the US-Israel-Iran conflict. The Shanghai Containerised Freight Index recorded double-digit weekly gains on the Shanghai–US west and east coast routes, while Asia–Europe spot rates also increased, approaching levels last seen before Chinese New Year. Analysts noted that capacity utilisation, particularly on US east coast services, continued to limit the sustainability of the rate rally, with longer-term contract rates largely maintained but with higher bunker-linked surcharges.
• HAULAGE CAPACITY ACROSS THE GULF REGION is under strain as carriers increasingly designate alternative “safe port” calls following disruptions linked to the Middle East conflict. Oman has emerged as a key staging hub, with containers discharged at ports such as Sohar and Salalah before being trucked onward to Gulf Cooperation Council destinations or diverted to air freight. A lack of consistency in carrier practices has been reported, creating uncertainty over cargo locations and placing pressure on regional trucking providers. While some shipments have been routed through neighbouring ports in Saudi Arabia and the UAE, others have been discharged far from destination, adding cost and complexity for shippers managing both in-transit and newly booked cargo.
• EUROPEAN ROAD FREIGHT OPERATORS are facing increased financial pressure as fuel prices rise sharply following the escalation of the Middle East conflict, according to the International Road Transport Union. Fuel can account for up to 30% of operating costs, amplifying volatility across a sector already recovering unevenly from recent downturns. The IRU warned the current environment represents a structural shift rather than a temporary spike, with additional challenges including driver shortages, slow fleet renewal and higher regulatory costs. Modest freight volume growth in 2024 has not offset these pressures. The situation is further complicated by new tolling regimes, including kilometre-based truck charges in the Netherlands from July 2026, adding to operating cost burdens.
• CONTAINER SHIPPING OPERATIONS in and around the Strait of Hormuz were further disrupted after US forces seized an Iran-flagged containership and Iranian forces fired on another vessel, despite claims that the waterway had reopened. The incidents highlighted continued uncertainty over freedom of navigation, with analysts noting heightened risk for carriers even outside the immediate strait. Several vessels, including ships operated by major liner companies, were unable to complete transits, while others turned back following warning shots. Market observers described rapidly shifting conditions, with control measures and ceasefire claims changing within days. The events reinforced concerns that enforcement actions and retaliatory responses are extending the risk zone deeper into the Gulf of Oman.
• VOLATILITY IN BUNKER PRICES following disruptions in the Strait of Hormuz has prompted carriers to adjust fuel surcharge mechanisms and operational practices. Emergency fuel surcharges are being recalculated more frequently, with some shippers moving from quarterly to monthly adjustment cycles to reflect rapid cost changes. Major carriers reported significant weekly increases in fuel-related costs across ocean, rail, feeder and trucking segments, passing these on through expanded surcharge structures. The uncertainty has reduced predictability for shippers’ total landed costs, even where demand remains stable. At the same time, industry data indicates a partial return to slow-steaming, with average container vessel speeds declining as carriers seek to offset historically high fuel prices.

SEAFREIGHT NEWS

• INTRA-ASIA CONTAINER FREIGHT RATES rose by an average of 10% over the past fortnight as sharply higher bunker prices flowed through to short-haul trades. The increase reflects Asia’s reliance on Middle Eastern fuel supplies, with the Strait of Hormuz disruption affecting around 20% of global oil flows. Asian refiners are also facing shortages of heavy-sour crude, constraining fuel output. Shipping lines have absorbed some cost pressure through slower sailing speeds, but higher fuel costs are increasingly being passed into freight rates.
• MSC THE STANDOUT PERFORMER on Far East–Oceania routes. Capacity on the Far East–Oceania trade grew 12% year-on-year to 811,141 teu, significantly outpacing global fleet growth, according to Alphaliner. Mediterranean Shipping Company recorded the largest gains, adding almost 29,500 teu, a 40% increase on its 2025 capacity, driven by new and extended Asia–Australia services. CMA CGM also expanded strongly, overtaking Maersk to become the second-largest operator on the route, while Cosco retained market leadership. The trade has become more concentrated, with the top four carriers now controlling 68% of deployed capacity. Spot ocean freight rates from China to Australia rose sharply towards the end of March.
• MEDITERRANEAN SHIPPING COMPANY became the first container line to assemble a fleet of 1,000 ships following the delivery of the 11,480 teu MSC Migsan from a Chinese shipyard. Alphaliner data shows MSC now operates more than 7.29 million teu, representing 21.6% of global container capacity, with a further 126 vessels on order. The milestone coincided with the transfer of ownership from founder Gianluigi Aponte to his children, Diego Aponte and Alexa Aponte-Vago, who now hold sole control of the group. MSC said the transition ensures continuity and stability, with the company remaining focused on its core ocean freight business.
• HONG KONG-BASED OOCL reported a mixed first quarter for 2026, with liner revenue down 7.6% year-on-year to USD 2.14 billion, despite higher volumes. Total liftings increased 1.7% and capacity rose 4.3%, while the overall load factor declined by 2.1%. Average revenue per teu fell 9.1% compared with the same period last year. Liftings grew strongly on the Asia–Europe trade but declined on trans-Pacific and trans-Atlantic routes, where revenue drops were most pronounced. In the Intra-Asia/Australasia sector, liftings increased 2.9% and revenue edged up 0.7%. The company provided no commentary on the results.
• SINGAPORE-BASED SEALEAD SHIPPING will exit the Australia trade after being given notice by its CA2 service vessel-sharing agreement partners. The carrier entered the China–Australia trade in 2022 as a single-vessel contributor, but its withdrawal will leave a capacity gap on the service, with voyages to be blanked and no replacement vessel currently scheduled. No formal reason has been provided for the exit, and there is no confirmation the company has entered insolvency. Industry reporting has cited operational challenges and regulatory scrutiny, though these claims have not been independently verified. SeaLead said it remains compliant with applicable sanctions and regulatory requirements.
• AAL SHIPPING UNVEILED ITS LATEST Super B-Class heavy-lift vessel, AAL Newcastle, and confirmed orders for two additional upgraded ships, extending the series to ten vessels. AAL Newcastle is the first of the enhanced design, featuring increased individual crane capacity from 350 to 400 tonnes, alongside other lifting and deck-use improvements. The vessels are being built at CSSC Huangpu Wenchong Shipyard in China, continuing a long-standing partnership. AAL said the expanded and upgraded fleet supports growing demand for complex project and offshore renewable energy cargoes, improving lifting capability, cargo flexibility and operational efficiency across its liner services, including Asia–East Coast Australia rotations.
• AAL SHIPPING HAS ACHIEVED ISO 27001 CERTIFICATION for information security management, adding to its existing ISO 9001, 45001, 14001 and 50001 accreditations. The company said the certification strengthens its integrated QHSE framework and ensures the protection of operational data, project details and digital information exchanges. AAL noted that information security is increasingly critical in the heavy-lift and project cargo sector, where complex logistics and sensitive project data are integral to operations. Management said the certification reflects ongoing investment in governance, systems and people, reinforcing the carrier’s position as a long-term partner for complex project logistics in a more digital and regulated shipping environment.

AIRFREIGHT NEWS

• GLOBAL AIRFREIGHT RATES CONTINUED TO CLIMB sharply into early April despite the announcement of a temporary ceasefire in the Middle East, according to data from TAC Index. The Baltic Air Freight Index rose 5.1% in the week to 6 April and was up 15.8% year on year, driven by severe capacity disruption following Gulf airspace closures. Rates from China to Europe and the US were close to 30% higher year on year, with Hong Kong outbound rates up 8.6% week on week. Airlines have been forced to reroute flights, increasing costs and transit times, while jet fuel prices surged to nearly double month-on-month levels, adding further uncertainty to the outlook.
• GLOBAL AIRFREIGHT TONNAGE FELL 4% year on year in March, reversing growth seen earlier in the year, as the Middle East conflict disrupted capacity, according to WorldACD data. The Middle East and South Asia region recorded the largest decline, down 21%, while Africa, Europe and Asia Pacific also saw year-on-year contractions. Despite lower volumes, average air cargo rates rose sharply, with global pricing up 12% year on year, driven by capacity losses and rising fuel and war risk surcharges. Average rates from the Middle East and South Asia increased by more than 50%. Weekly data showed further volume declines across most regions, partly attributed to the Easter period.
• A FULL RECOVERY IN GLOBAL AIRFREIGHT CAPACITY could take months following the US-Iran ceasefire, according to analysis from Xeneta. While the ceasefire may ease some pressure, airlines face delays in restoring routes due to airspace restrictions, operational reset requirements and ongoing insurance concerns. Spot airfreight rates on key corridors remain significantly elevated, with South Asia–Europe rates more than double year-on-year levels. Jet fuel prices are also expected to take time to normalise. Xeneta noted that shippers are unlikely to make major routing changes during a short ceasefire, while passenger demand uncertainty could further constrain bellyhold capacity on Middle East routes.
• FRANKFURT AIRPORT recorded a 0.4% year-on-year increase in cargo volumes in March to 185,500 tonnes, despite broader market declines linked to the Middle East conflict. Operator Fraport said capacity on Middle East routes fell sharply, but volumes were supported by the reintroduction of “preighters”, with around 50 additional cargo-only passenger flights deployed, mainly on Dubai services. Cargo flows shifted toward direct routes between Europe, Asia and Africa, with freighter flights outside the Middle East up 12.4%. Bellyhold volumes declined as passenger traffic to the region dropped, while African and Far East routes recorded growth.
• QANTAS FREIGHT HAS ADDED SINGAPORE CHANGI AIRPORT to its freighter network, launching a twice-weekly Sydney–Shanghai–Singapore–Sydney service from 3 April. The flights are operated using Airbus A330 passenger-to-freighter aircraft. Changi Airport Group said the service strengthens Singapore’s cargo connectivity by offering additional capacity, routing options and schedule flexibility, particularly for time-sensitive and e-commerce shipments. The route enhances trade links between Australia, China, Europe and Southeast Asia, leveraging Singapore’s role as a regional consolidation and transhipment hub. The move follows Qantas Freight’s expansion of its China freighter operations last year.
• INDUSTRIAL ACTION BY PILOTS AT LUFTHANSA CARGO continued into mid-April after negotiations with the Vereinigung Cockpit union failed to reach agreement on pay and pension conditions. The strike followed earlier walkouts and involved pilots across Lufthansa Cargo, Lufthansa Airlines and Lufthansa CityLine. While freighter operations were partially maintained, significant disruption occurred to bellyhold capacity as many passenger flights from Frankfurt and Munich were cancelled. Lufthansa Cargo imposed temporary restrictions on shipment acceptance and transit at its hubs, affecting sensitive cargo categories. The airline said it remained in discussions with unions while working to minimise disruption across its cargo network.
• AIRFREIGHT RATES MOVED BACK towards peak-season levels by late March as Middle East conflict-related disruption and rising jet fuel prices tightened capacity, according to TAC Index. The Baltic Air Freight Index rose 9.3% week on week and was 10% higher year on year. Spot rates from Hong Kong, India and Korea continued to rise, with overall prices on major China–Europe and China–North America lanes approaching typical peak-season levels. TAC noted jet fuel prices were up around 100% year on year, suggesting further upward pressure on rates even if the conflict eased quickly.
• GLOBAL AIR CARGO DEMAND ROSE 11.2% year on year in February, measured in cargo tonne kilometres, driven by pre-Lunar New Year shipments and steady Asia-linked trade, according to IATA. Capacity increased 8.5% and the industry cargo load factor rose to 46%. However, IATA warned that the outbreak of conflict in the Middle East at the end of February introduced significant uncertainty for the remainder of the year. Rising fuel costs, fuel scarcity in some regions and disruption at Gulf hubs were cited as major challenges that could affect future performance despite strong underlying economic indicators.
• THE ONGOING MIDDLE EAST CONFLICT has reshaped global airfreight pricing and could eventually dampen demand if disruptions persist, according to Xeneta. While demand has remained resilient in the short term as shippers prioritise service continuity, rising jet fuel costs and capacity shortages have driven sharp increases in spot rates, particularly on South Asia and Southeast Asia corridors. Global air cargo demand fell 3% year on year in March, while capacity remained well below pre-conflict levels. Xeneta reported that shippers are increasingly favouring short-term contracts amid uncertainty, compressing rate validity across the market.

 

OCEANIA PORTS AND AIRPORTS

• NEW LAYDOWN FOR PORT OF TOWNSVILLE ANNOUNCED. The Queensland Government has completed a new 14-hectare project cargo laydown area at the Port of Townsville, expanding the port’s capacity to handle large and complex cargo linked to critical minerals, advanced manufacturing and renewable energy projects. The facility provides temporary storage and improves handling of oversized equipment, reducing the need for long-haul transport to other ports. State ministers said the development strengthens North Queensland’s freight and logistics capability and supports regional economic growth. The project is expected to improve supply chain efficiency, lower freight costs, and reduce heavy vehicle congestion by keeping cargo movements closer to project sites.
• THE PORT OF NEWCASTLE recorded more than 11.12 million tonnes of non-coal cargo in 2025, exceeding its previous record and highlighting progress in trade diversification. Growth was driven by increased wheat exports and rising volumes of project cargo, including equipment for major renewable energy developments. Total throughput exceeded 160 million tonnes, with coal remaining a significant component of trade. Port executives said the result reflected long-term diversification efforts and strong demand for machinery and project cargo. The port handled more than 2,300 vessel visits during the year, reinforcing its role as a major logistics hub in New South Wales.
• THE PORT OF NEWCASTLE IS INVESTING $36 MILLION to extend its multipurpose terminal berth at Mayfield, increasing vessel capacity from 220 metres to 300 metres. The project supports growing demand for renewable energy cargo, particularly wind turbine components, and builds on earlier investments in heavy-lift crane infrastructure. Port management said the expansion will enhance capability to handle oversized and over-mass cargo linked to renewable energy zones across New South Wales. Construction is expected to take around 15 months and forms part of the port’s broader strategy to diversify away from traditional mineral trades.
• TASPORTS HAS COMMENCED a 16-month remediation program at Berth 4 at the Port of Burnie, addressing scour issues identified beneath the quay wall. The works, undertaken with specialist contractors, aim to maintain safe and reliable operations while upgrading ageing infrastructure. Load restrictions were introduced in 2024 following inspections, and the staged remediation is designed to minimise disruption to Strait Link shipping services. TasPorts said the project is critical to sustaining freight movements that account for a significant share of Tasmania’s containerised trade. Practical completion is expected by mid-2027.
• FEDERAL GOVERNMENT COMMITS TO NEW WA CONTAINER PORT. The Australian and Western Australian governments have confirmed a combined $1.1 billion commitment to develop the new Westport container terminal in Kwinana. Funding includes major road upgrades, particularly along Anketell Road, to improve freight access to the future port precinct and the broader Western Trade Coast. Governments said the investment will support long-term trade growth, productivity and supply chain efficiency, while reducing congestion on local roads.
• DNATA WILL INVEST APPROXIMATELY A$32 MILLION in a purpose-built air cargo terminal at Western Sydney International Airport. The 5,000-square-metre facility, located within the airport’s 24-hour cargo precinct, is designed to handle up to 60,000 tonnes of freight annually and support specialised cargo such as pharmaceuticals. Operations are scheduled to commence in July 2026, ahead of the airport’s full passenger opening. The development is expected to create around 50 direct jobs initially and strengthen New South Wales’ air freight capacity and supply chain resilience.

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