News

Fracht Group Australia Logistics News - July 2026

1/7/2026

AROUND THE WORLD

• US TARIFFS ARE EXPECTED TO SUSTAIN elevated ocean freight rates through to October, according to Wan Hai Lines. A 10% tariff on US imports prompted Asian shippers to front-load cargo ahead of its expiry, bringing forward peak season demand. Additional policy developments include potential caps on tariffs for certain Taiwanese exports and exemptions for metals used in aircraft components. Wan Hai noted that restocking activity in the Middle East and congestion across Red Sea and Asian ports have further supported freight rates.
• FALLING WATER LEVELS ON THE RHINE are reducing barge loading capacity, but congestion at major container terminals remains the primary operational challenge in Europe. Water levels have dropped below 150cm, though waterways remain navigable with reduced payloads. Industry sources report that low water affects capacity rather than transit times, whereas congestion at ports such as Rotterdam and Antwerp is driving delays of up to four days or more. Key factors include terminal congestion, lock scheduling constraints and tidal windows, which together create cascading delays.
• CONTAINER VESSELS HAVE BEGUN cautiously re-entering the Strait of Hormuz following ceasefire discussions, although navigation remains constrained by unresolved security risks, including reported sea mines. Shipping activity is limited, with vessels using either southern routes via Oman or northern passages requiring Iranian clearance. Data indicates both inbound and outbound vessel movements have resumed, while a number of containerships remain within the Persian Gulf awaiting exit.
• THE REOPENING OF THE STRAIT OF HORMUZ under a US-Iran agreement is expected to initiate a recovery in container shipping, although full normalisation may take at least three months. Approximately 10% of global container capacity has been disrupted by the blockade, with vessel deployment and service coverage significantly reduced across the Arabian Gulf. Freight rates have risen sharply across major trade lanes, supported by capacity shortages and front-loading activity. Recovery is expected to proceed in phases, starting with the release of stranded vessels, followed by the return of feeder services and eventually mainline routes, contingent on the completion of mine-clearing operations and improved security conditions. 
• KLM WILL RELOCATE its cargo operations at Amsterdam Schiphol Airport from the central terminal area to a new “Vracht 15” facility in the airport’s southeast cargo zone. The move is part of Schiphol’s long-term master plan to develop a more centralised and efficient cargo area with improved accessibility and sustainability features. The relocation will also free up space for additional aircraft stands capable of handling larger aircraft and support development of the new Terminal South.

SEAFREIGHT NEWS 

• MSC BECOMES FIRST CARRIER to break 20% global market share barrier, reaching 21.5% of total operated capacity by the end of May, according to Alphaliner. This milestone follows a sustained fleet expansion programme since the pandemic, with the carrier’s fleet effectively doubling over the past 15 years. In contrast, Maersk’s decision to cap fleet growth has seen its market share fall to 13.7%, its lowest level in two decades. The data highlights increasing market concentration, with the top ten carriers controlling approximately 84.7% of global capacity.
• ANL WILL REVISE ITS APR2 CHINA–PNG–QUEENSLAND SERVICE from July to improve schedule reliability and transit performance. The updated rotation removes Qingdao, Busan and Townsville, with greater reliance on transhipment via Hong Kong to strengthen connections with North Asia markets. The new schedule will operate across ports including Ningbo, Shanghai, Hong Kong, Nansha, Lae, Brisbane and Gladstone using three vessels of around 1,700 TEU (twenty foot equivalent units).
• SWIRE SHIPPING HAS ADDED a new call at Noro in the Solomon Islands to its Pacific Weekly Express service, expanding regional coverage. The service operates six vessels on a 42-day round voyage across Southeast Asia, PNG and the South Pacific.
• AAL SHIPPING HAS REPORTED A 19% IMPROVEMENT in its fleet-wide Energy Efficiency Operational Indicator since 2023, attributed to ongoing investment in modern vessels, operational optimisation and performance monitoring. The company continues to expand its fleet with next-generation Super B-Class vessels designed for higher cargo intake flexibility, improved fuel efficiency and future fuel adaptability.
• CARRIERS EYE MAJOR RATE HIKES FOR JULY, even as port congestion across Asia and Europe strands 3.4m TEU of container ship capacity waiting at anchor, continuing to support elevated freight rates ahead of planned July increases. Delays of four to five days are being reported in Shanghai, while schedule reliability in Singapore remains below normal levels. Congestion and overbooking in Taiwan and operational pressures in India are further constraining capacity, with vessel waiting times extending up to seven days. In Europe, Antwerp is working through backlogs and Hamburg faces infrastructure bottlenecks.
• THE A3 CONSORTIUM, comprising ANL, COSCO Shipping and OOCL, has launched a new peak-season express service between China and Australia. The weekly A3X service will commence on 27 July from Qingdao, calling at Shanghai, Shekou, Melbourne and Port Botany before returning to Qingdao. The service is designed to provide additional capacity and faster transit times during the peak season, with transit times as low as 14 days from Shekou to Melbourne and 15 days from Sydney to Qingdao.
• WALLENIUS WILHELMSEN HAS SECURED a three-year extension to an existing contract with a European automotive manufacturer, valued at approximately USD 420m in addition to an existing contract value of around USD 180m. The agreement, running from mid-2028 to mid-2031, reinforces long-term collaboration and provides earnings visibility, while incorporating the use of low-emission fuels to support emissions reduction targets. Separately, the company is advancing its wind-assisted propulsion programme, with installation of a 46-metre Oceanbird wing sail underway on the vessel Tirranna. The retrofit aims to test the technology at scale and generate data to support future vessel and propulsion system development. 

AIRFREIGHT NEWS 

• GLOBAL AIR CARGO DEMAND returned to growth in April, increasing 4% year on year in cargo tonne kilometres after a March decline linked to Middle East disruptions. Overall capacity declined slightly by 0.4%, while load factors improved to 46%. Growth was led by Asia-Pacific markets, where demand rose 10.5%, while European and North American carriers also recorded increases. In contrast, Middle Eastern carriers saw an 18.2% decline due to ongoing disruptions affecting Gulf hubs and key trade corridors. Trade flows across Asia remained strong, although geopolitical instability and sharply rising fuel costs continued to impact operations across the sector.
• DEMAND LINKED TO ARTIFICIAL INTELLIGENCE and data centre infrastructure is emerging as a major growth driver for the air cargo sector, with chipmakers reportedly booked out through to 2028. While e-commerce volumes remain subdued, shipments of semi-conductors, servers and related equipment are generating strong growth, particularly across intra-Asia and transpacific routes. Data indicates that US air imports grew 11% in the first quarter, largely driven by a 70% surge in high-tech cargo.
• EMIRATES SKYCARGO HAS EXPANDED its freighter network across East and Southeast Asia to meet growing demand linking manufacturing hubs with global markets. The carrier has doubled freighter capacity to Tokyo Narita and increased frequencies to Hong Kong, while also expanding operations into Central China with new flights from Zhengzhou. Additional services include resumed flights from Singapore and increased capacity to Taipei, alongside established services in Bangkok and Hanoi. In the 2025 / 26 financial year, Emirates SkyCargo transported over 439,000 tonnes from 12 regional markets, representing a 5% increase year on year and reflecting strong demand for high-tech, e-commerce and perishables cargo flows.
• CATHAY CARGO REPORTED continued growth in May, carrying more than 150,000 tonnes of cargo, representing an 11% increase year on year. Available Freight Tonne Kilometres also rose by 6%, while total tonnage for the first five months of 2026 increased 8% compared to the same period in 2025. Growth was supported by strong demand on key trade lanes, particularly between mainland China and Southeast Asia, alongside increased shipments of semi-conductors, servers and pharmaceuticals. The carrier also confirmed ongoing fleet investment, including additional freighter aircraft, as it continues to strengthen capacity and support Hong Kong’s position as a global air cargo hub. 

OCEANIA PORTS AND AIRPORTS

• VICTORIA INTERNATIONAL CONTAINER TERMINAL (VICT) is continuing to advance its automation strategy while balancing operational demands at Melbourne’s Webb Dock. The terminal, Australia’s first fully automated facility, is integrating new technologies aimed at improving productivity, safety, and throughput. Management highlighted ongoing investment in automation systems, equipment upgrades, and digital platforms to enhance terminal efficiency. At the same time, VICT is managing the operational complexities associated with maintaining service reliability in a challenging environment characterised by fluctuating volumes and external supply chain pressures.
• STORM DAMAGE HITS FREMANTLE HARBOUR but operations unaffected when infrastructure damage was sustained following severe storm activity in early June. The damage included impacts to port structures and facilities, prompting inspection and repair activity by authorities. Despite the extent of the storm, container and bulk handling operations were maintained, ensuring continuity of trade flows through Western Australia’s primary port gateway.
• HUTCHISON PORTS SYDNEY HAS TAKEN DELIVERY of new ship-to-shore cranes as part of its terminal upgrade programme at Port Botany. The cranes, among the largest operating in Australia, are designed to handle larger container vessels and improve terminal productivity. The investment forms part of broader efforts to enhance capacity and operational performance in response to growing container volumes. Installation and commissioning will support Hutchison’s ability to accommodate modern shipping requirements while improving turnaround times. The upgrade reflects ongoing investment in port infrastructure to support trade growth and vessel upsizing trends in the Australian market.
• NEW ZEALAND HAS APPROVED THE DEVELOPMENT of a liquefied natural gas (LNG) import facility to support long-term energy security and supply stability. The project will enable the country to import LNG via a floating storage and regasification unit, providing flexibility to meet domestic energy needs. Authorities stated that the development forms part of efforts to strengthen resilience in the energy sector amid declining local gas supply. The facility is expected to integrate with existing infrastructure and support industrial, commercial, and electricity generation requirements, reinforcing supply chains critical to economic activity.
• THE WESTERN SYDNEY INTERNATIONAL (WSI) AIRPORT CARGO PRECINCT has now been confirmed to open in July, marking a key milestone in the development of the new aviation hub. The precinct will provide dedicated facilities for freight operators, supporting both domestic and international cargo operations. Designed to handle growing freight volumes, the infrastructure aims to enhance logistics connectivity across the Sydney region and beyond. The development is expected to support supply chain efficiency and provide additional capacity to meet increasing demand for airfreight services in Australia’s largest metropolitan market.
• PORT OF MELBOURNE HAS RECORDED new throughput milestones, supported by strong economic conditions and sustained trade demand. Container volumes reached record levels, reflecting growth across import and export sectors. The performance highlights the port’s role as Australia’s largest container gateway and its capacity to handle increasing freight flows. Officials attributed the growth to resilient domestic demand and strong connections to international markets. The results underline ongoing pressure on port infrastructure and the importance of continued investment to support capacity, efficiency, and long-term trade growth.
• WESTERN AUSTRALIAN PORT AUTHORITIES have collaborated to host a joint forum showcasing start-up technology solutions relevant to port and logistics operations. The initiative brought together multiple ports to evaluate innovations in areas such as automation, sustainability, and operational efficiency. The event reflects a coordinated approach to identifying technologies that could enhance port performance and address industry challenges. By engaging with emerging technology providers, the participating ports aim to accelerate adoption of solutions that support productivity improvements and long-term competitiveness across the state’s port network.
• COSCO SHIPPING’S “GOLDLEAD” LOGISTICS FACILITY has officially opened in Sydney, marking an expansion of the company’s presence in the Australian market. The facility is intended to support integrated logistics services, including warehousing and distribution, strengthening COSCO’s end-to-end supply chain capabilities. The opening highlights continued investment by global shipping lines in local logistics infrastructure to support trade flows between Asia and Australia. The development is expected to enhance service offerings and provide greater connectivity for customers operating in the region.
• QUBE HAS ANNOUNCED that its upgraded bulk handling facility at the Port of Albany will be made available to all market participants, expanding access to port infrastructure. The upgrade improves handling capacity and operational efficiency for bulk commodities moving through the port. By opening the facility to multiple users, Qube aims to increase utilisation and support broader regional trade activity. The initiative aligns with efforts to enhance supply chain capability in Western Australia’s bulk export sector while providing more flexible access for producers and exporters.
• PORT OF GEELONG HAS OUTLINED PLANS to position itself as Australia’s most sustainable port through a range of environmental initiatives. These include investments in cleaner technologies, emissions reduction strategies, and partnerships aimed at supporting decarbonisation. The port is focusing on improving energy efficiency and reducing the environmental impact of its operations while supporting customers in achieving sustainability targets. The strategy reflects increasing emphasis on environmental performance across the ports sector and the role of infrastructure operators in supporting broader sustainability objectives within supply chains. 

CUSTOMER SERVICE 

Fracht Group Australia – keeping your supply chain moving. For further information or tailored guidance on any of the topics covered, contact your Fracht representative or our friendly team at fracht@frachtsyd.com.au