Global Supply Chain Update
Geopolitical Tensions between Israel and Iran
Geopolitical tensions between Israel and Iran are having a significant impact on ocean freight operations and logistics planning across the region. The situation has escalated in recent weeks due to military actions and political developments, prompting new restrictions, port disruptions, and heightened security measures that may affect the movement of goods, particularly shipments involving Dangerous Goods (DG).
Key Developments
1. Regulatory Situation in Israel
- A Dangerous Goods import ban has been imposed with storage prohibition at Ashdod Port and requirements for special transport permits and export pre-approvals coming into immediate effect.
- LCL DG bookings to Israel have been suspended until further notice.
- Please be aware that all shipments are subject to case-by-case verification, as port entry and clearance conditions may change at short notice.
2. Shipping Line Operations – General Overview
Shipping lines continue to dynamically adjust operations in response to regional security assessments. While most carriers still service Ashdod, some have temporarily suspended or reduced calls to Haifa due to increased risk exposure.
Transits through the Strait of Hormuz remain operational. However, major carriers have contingency plans and risk evaluations in place. Should the security situation worsen, changes to vessel routing and service frequencies may be implemented without prior notice.
3. Geopolitical Outlook
- A temporary ceasefire between Israel and Iran was announced by U.S. leadership. After brief missile activity from both sides the situation remains highly volatile.
- A U.S. military strike on Iranian nuclear sites on Sunday has escalated regional tensions.
- The Iranian parliament has called for the closure of the Strait of Hormuz—this is currently a political statement and not official policy.
- Houthi threats in the Red Sea remain a concern, particularly for vessels perceived to be aligned with the U.S. or Israel.
Important Reminder
Even if DG cargo is accepted and loaded, discharge at the destination remains subject to real-time decisions by port and security authorities. Delays, rerouting, or return-to-origin scenarios may occur. Any additional costs or liabilities arising from such events remain the responsibility of the shipper.
We remain committed to keeping you informed and supported throughout this period of uncertainty. For any shipment-specific enquiries, please reach out to your regular contact at Harders.
Air Freight Update
As we navigate through increasingly complex global supply chains, the air freight markets stand at a critical juncture with emerging technologies and evolving environmental regulations reshaping the industry.
There is a notable increase in Global Air Cargo demand driven by e-commerce and high-tech industries.
Due to ongoing geopolitical instability in the middle east region, many Airlines cancelled their flights at last minute for safety. Additional fuel is being uplifted on flights which may result in payload constraints and shipment offloads. This is also impacting spot rates.
Airlines have been adding cargo embargoes to many of the middle east countries.
Capacity growth remains moderate due to various factors affecting carriers, companies, and forwarders due to uncertainty in tariffs and trade policies, e-commerce volatility, and ongoing supply chain constraints.
Whatever your cargo size, type, or deadline, we deliver the best rate and service combinations to meet your needs.
We have weekly consoles from USA, Europe, China, and South Africa into AU. Please contact our team of supply chain professionals who will continue to provide you with the most competitive options to support your supply chain needs.
Sea Freight Update
We are pleased to share this month’s market update across key global trade lanes into Oceania. As global shipping dynamics continue to evolve, we aim to keep you informed with the latest developments, rate trends, and capacity insights to support your planning and supply chain strategies.
Northeast Asia to Oceania
Overcapacity persists as shipping lines lose momentum on forging ahead with advertised rate increases, planned to be imposed from June 15, at advertised quantum of USD 300 per TEU.
- Despite 4 blank sailings implemented second half of June equating to 20,000 TEU removal carriers continue to contend with weak demand.
- The surplus capacity is expected to persist through the first half of July putting pressure on freight rates.
- To stabilise the market shipping lines may be forced to reduce sailings more frequently
- These measures will be critical in correcting supply / demand imbalance ahead of the traditional August peak season.
Outlook: Looking ahead carriers are projecting strong booking forecasts in July and August however some will still cancel sailings to boost confidence to succeed with planned increases via Rate Restoration announcements effective July 1 and July 15. Additional peak season surcharges on top may be implemented once demand outpaces supply.
Southeast Asia to Oceania
- Market Conditions remain steady on this trade with improved schedule reliability, especially from Singapore and Port Klang origins.
- Healthy space availability, but feeder connections may face delays due to weather disruptions in certain Southeast Asian ports.
- Freight rates are holding firm with minor increases expected on select lanes due to bunker surcharges set to increase
Outlook: We advise early bookings for high-demand destinations in Australia and New Zealand through July and August.
Europe to Oceania
- Increasing pressure from port congestion in Northern Europe and disruptions in the Red Sea rerouting.
- Services are stretched due to extended transit times and fewer direct routings.
- Carriers have announced a Peak Season Surcharge (PSS). Quantum and actual effective date vary by carrier and port pairing.
Outlook: Rates likely to remain elevated through Q3. Clients are encouraged to plan and consult with us for specific routing and pricing options
USA to Oceania
- Strong demand on the Transpacific is impacting vessel scheduling and space allocation into Oceania.
- Capacity remains tight, particularly from the West Coast. East Coast routings offer slightly better flexibility but with longer transit.
- Freight rates are seeing an upward trend, driven by US export strength and limited sailings to Oceania.
Outlook: Expect sustained high rates through Q3 with potential for further general rate increases (GRIs). Early bookings and flexibility with routing are key.
Key Recommendations:
- Book early and provide forecast visibility where possible
- Consider alternate ports of loading where schedules are more favourable.
- Engage with our team for tailored solutions and consolidation opportunities.
- Stay informed on fuel surcharge updates and any seasonal surcharges applicable like peak season surcharges, war risk surcharges and congestion surcharges.
Should you require tailored market insights or assistance with space allocation and pricing, please don’t hesitate to reach out to your Key Account Manager.
Harders Advisory
Department of Climate Change, Energy, the Environment and Water (DCCEEW) – Per- and
Poly-fluoroalkyl Substances (PFAS) Ban
With effect from 1 July 2025 three specific groups of PFAS will be banned for import, manufacture and use in Australia. The three groups are perfluorooctane sulfonate (PFOS), perfluorooctanoic acid (PFOA) and perfluorohexane sulfonate (PFHxS), with the ban applying to around 500 substances either on their own or contained within mixtures or articles.
PFAS chemicals are known as ‘forever chemicals’ and have been linked to various health problems, including cancer. They have traditional been used in cookware, textiles, furniture, pesticides and cosmetics, however it is most commonly associated with firefighting foams used throughout Australia for decades.
At this stage, these PFAS restrictions will not be enforced through border clearance processes, however the Australian Government expects that introdcuers, exporters and users comply with the standards.
Importers or their brokers should check the IChEMS online register prior to importation and be aware of their obligations under these measures. It is recommended to subscribe to DCCEEW IChEMS updates to stay informed of future developments by emailing ichems.enquiry@dcceew.gov.au
Outbreak of Lumpy Skin Disease in Italy
Italy has notified the World Organization for Animal Health of an outbreak of lumpy skin disease on a cattle farm in Sardinia. As a result, Italy has lost its LSD-free status.
The Department of Agriculture, Fisheries and Forestry is working behind the scenes to assess risk and determine what safeguards to implement to protect Australia.
Importers of bovine derived commodities, including dairy products, should expect variations to import permits from Italy in the coming days, similar to the response imposed during the foot and mouth disease outbreak in Germany a few months ago.
If you have any questions related to the above, please contact HARDERS Advisory or your key account manager.