Customer Notice – Market Update – Inland Fuel Adjustment, Energy Markets & China–Australia Trade Lane

We would like to provide a market update across domestic transport and the Asia–Australia trade lane.

Inland Fuel Adjustment (IFA)

In line with recent easing in Australian diesel pricing and broader market conditions, we have worked with our transport providers and gladly can commence reducing our Inland Fuel Adjustment (IFA). While fuel markets remain sensitive to geopolitical developments, particularly around energy supply risk given the situation on the Strait of Hormuz, softer domestic fuel pricing has supported a downward revision to inland fuel-related charges. We will continue to review IFA levels in accordance with fuel movements and carrier cost inputs to ensure alignment with the market.

Middle East Impact

Ongoing Middle East tensions continue to be closely monitored across global supply chains. While no direct disruption to Australia-bound services is currently being observed, the situation continues to support volatility in bunker costs, vessel operating expenses and broader freight costs. Carriers remain cautious around potential impacts to energy pricing, which may influence ocean rate levels and surcharge environments should conditions escalate. At present, no widespread service interruptions are being reported, though markets remain sensitive to further developments.

China – Labour Day / Capacity & Vessel Operations

Ahead of the China Labour Day holiday (1–5 May), carriers are managing the usual seasonal shifts in origin demand, with up to 8 blank sailings already announced for May, rolled cargo risk and schedule adjustments expected around the holiday period and immediate post-holiday surge. Reduced factory output and constrained terminal labour during the holiday may contribute to temporary pressure on origin operations.

For the China–Australia trade lane, vessel operations remain broadly stable, however some schedule variability is anticipated as carriers balance capacity with holiday-driven volume fluctuations. We are seeing carriers actively managing utilisation, tighter space conditions on selected sailings may emerge in the weeks following the holiday.

Freight Rates / Outlook

Ocean rates into Australia have generally held steady, however a number of carriers have recently announced rate increases and we are beginning to see upward pressure on market pricing as we move into May. This is being driven by ongoing blank sailing programs from multiple shipping lines and rising fuel-related costs.

Should vessel utilisation continue to tighten or operating costs escalate further, additional upward movement in rates and surcharges is likely in the coming weeks.

We are continuing to closely track capacity levels, blank sailing programs, rate developments, and inland cost drivers, and will keep customers informed of any material changes that may impact pricing or service reliability.