Landside Logistics
Fuel Update
Diesel prices continued to trend upward throughout August, leading to higher fuel surcharge adjustments across much of the transport sector.
Market volatility, influenced by global supply conditions and geopolitical factors, continues to affect fuel costs. Many carriers are reviewing and adjusting surcharge mechanisms on a weekly basis to respond to changing market conditions.
Businesses should continue to monitor fuel-related charges closely, particularly where fuel surcharges flow through to wharf cartage, linehaul, depot, empty container park and other transport-related costs.
ACFS Update
During August, ACFS Port Logistics entered voluntary administration, with administrators appointed to assess the future structure and financial position of the business.
The administration process remains ongoing, with indications that additional time may be required given the size and complexity of the organisation.
ACFS has publicly stated that operational activities are continuing across its network, with no significant service disruptions reported as a result of the administration process to date.
Customers and industry participants continue to monitor developments as administrators evaluate available restructuring and recapitalisation options. At this stage, stakeholders across the supply chain are maintaining normal business operations while awaiting further updates on the future direction of the business.
Sea Freight Update
As we move into the traditional peak season, market conditions across Asia to Oceania have strengthened significantly.
Typhoon disruptions across East China, ongoing port congestion, vessel delays and strong seasonal demand are tightening effective capacity and driving freight rates higher. Carriers are increasingly focused on yield management, with most major lines implementing General Rate Increases (GRIs) and Rate Restorations (RRs) for September.
Northeast Asia to Oceania
Severe typhoon activity has disrupted operations across key North China ports, including Shanghai and Ningbo. This has caused vessel delays, terminal closures, port omissions and significant schedule instability.
Vessel schedules are currently running approximately 10–13 days behind, with congestion and weather disruption reducing effective market capacity.
The A3X and A3N services have announced several port omissions, with Shanghai and Qingdao being omitted for 5 to 6 weeks. This is expected to create cargo backlogs. Customers with urgent cargo should consider alternative ports of loading where practical.
Peak season demand has also accelerated as exporters move Christmas and Golden Week-related cargo, creating growing backlogs across major origin ports.
Key conditions include:
- Despite some additional vessel deployment during August, available capacity remains constrained.
- Carriers have been successful in implementing significant rate increases for September.
- Further upward rate pressure is expected throughout September as carriers continue to manage space tightly and prioritise higher-yield cargo.
- Carriers have announced GRIs and RRs of USD 500–600 per TEU, effective 15 September 2026, ahead of the pre-Golden Week demand surge.
Southeast Asia and Indian Subcontinent to Oceania
Congestion and schedule disruption through key transhipment hubs, particularly Singapore, continue to affect reliability and transit times.
Vessel delays originating from China are also creating flow-on effects throughout Southeast Asia networks, limiting schedule recovery opportunities.
Capacity remains under pressure across the Indian Subcontinent, with equipment shortages, long lead times and booking restrictions continuing across several trade lanes.
Demand remains robust, resulting in limited available space and ongoing upward pressure on freight rates. Similar to the China trade, carriers have announced GRIs and RRs of USD 500–600 per TEU, effective 15 September 2026, as they seek to strengthen rate levels ahead of the traditional peak season.
Europe to Oceania
Market conditions remain relatively balanced. However, schedule reliability continues to be affected by Red Sea-related vessel diversions via the Cape of Good Hope, as carriers on the Oceania route remain hesitant to return vessels via the Red Sea.
Record-low Rhine River water levels are severely restricting barge operations across Germany and Central Europe. This is reducing inland transport capacity and increasing reliance on already constrained road and rail networks.
These inland transport disruptions are driving longer lead times, higher logistics costs and increased congestion risk at major gateway ports such as Rotterdam and Antwerp-Bruges. Shippers should allow additional lead time for European cargo movements.
Sea Freight Outlook
Peak season demand is expected to remain strong throughout September and into October.
Carrier announcements indicate that additional rate increases are likely during the second half of September. Ongoing vessel delays, port congestion and weather-related disruption are also expected to continue affecting schedule reliability across Asia-origin trades.
Limited availability of additional vessels means carriers have few opportunities to introduce meaningful new capacity into the Australia and New Zealand trades.
Western Australia remains particularly capacity constrained, driven by service disruption, limited direct vessel availability and ongoing transhipment delays.
With Golden Week in China taking place from 1–7 October, demand is expected to rise during the preceding two weeks as exporters bring shipments forward ahead of factory shutdowns.
Customers are encouraged to place bookings as early as possible to secure space, minimise exposure to further rate increases and reduce the risk of schedule disruption.
For shipment planning, market intelligence or tailored supply chain support, please contact your Key Account Manager.
Supply Chain and Trade Resilience
NSW Ports Achieves Record Rail Volumes Through Port Botany
NSW Ports has announced a record milestone for rail freight movements through Port Botany, with more than 504,000 TEU moved directly through the port’s on-dock rail facilities during FY2026.
This marks the first time an Australian port has exceeded half a million TEU transported by rail and reflects the continued growth of intermodal solutions within Australia’s supply chain network.
Increased rail utilisation supports improved supply chain efficiency by reducing road congestion, lowering emissions and improving cargo movement between ports and inland distribution centres.
Port Botany remains Australia’s only container port with on-dock rail capabilities at every container terminal, providing direct connectivity to metropolitan and interstate freight networks.
As investment in rail infrastructure continues, businesses can expect greater opportunities to use rail-based transport solutions that improve supply chain reliability while supporting sustainability objectives and reducing congestion-related delays.
Please contact your Key Account Manager if you would like to learn more about rail-based transport options.
Panama Canal Capacity Tightens Again
Australian shippers moving cargo between Australia and the US East Coast, US Gulf and other Atlantic markets should be aware of renewed pressure on Panama Canal capacity.
The Panama Canal Authority has announced further restrictions as below-average rainfall and strengthening El Niño conditions reduce water levels in the canal’s freshwater reservoirs.
From 3 September 2026, available daily transits will begin to fall, with further reductions from 15 September to around 32 vessels per day.
The canal remains fully operational, but reduced capacity could lead to longer waiting times and increased competition for transit slots.
The situation is particularly relevant for Australian shippers using Panama-routed services, including MSC’s Eagle service and the ANL/USL Panama service, which connect Australian ports with the US East Coast via the canal.
Businesses using Panama-routed services should:
- Allow additional contingency for September and October shipments.
- Check with carriers that planned sailings have confirmed Panama Canal bookings.
- Monitor potential surcharges or increased freight costs.
- Consider alternative routings for time-critical cargo.
- Review inventory levels where delays could affect production or customer deliveries.
This is not currently a repeat of the severe disruption experienced during the 2023–24 drought. However, the reduction in capacity is a developing risk worth monitoring.
Harders will continue to monitor Panama Canal conditions and global shipping developments and provide further updates as the situation evolves.
Government Seeks Industry Feedback on Australia’s Fuel Security Strategy
The Australian Government has released two consultation papers aimed at shaping the next phase of Australia’s fuel security strategy.
The initiative is designed to strengthen the resilience of Australia’s fuel supply network and help businesses remain protected against global supply disruptions and geopolitical risks.
The consultation comes at a time when global fuel markets continue to experience volatility. Industry reports indicate diesel prices have recently reached their highest levels since tensions in the Middle East began affecting energy markets, increasing cost pressure across the transport and logistics sector.
Fuel remains one of the largest operational costs within global supply chains. While the consultation process is focused on long-term resilience, businesses should continue to monitor fuel-related costs and the potential flow-on effects on freight rates, transport charges and surcharge structures.
Trade 2040 Highlights Long-Term Supply Chain Resilience
Australia’s new Trade 2040 roadmap highlights the growing challenges facing global trade, including geopolitical tensions, changing tariff environments, protectionist measures and increasing uncertainty within international supply chains.
The initiative aims to strengthen Australia’s long-term trade resilience while supporting continued economic growth and global market access.
The report recognises that supply chains are becoming increasingly complex and susceptible to disruption from external events. As businesses face evolving market conditions, there is a stronger focus on diversification, risk management and strategic planning to improve supply chain resilience.
Organisations are being encouraged to review sourcing strategies, understand supply chain vulnerabilities and develop contingency plans to manage future disruption.
Supply chain resilience is no longer simply an operational issue. It is an increasingly important strategic priority for businesses operating in global markets.