Australia
New Zealand Summary
As we approach the midpoint of 2025, global supply chains continue to navigate a complex mix of softening demand, shifting trade flows, regulatory developments, and operational constraints. This month’s update outlines key trends across ocean and air freight markets, bunker pricing, port performance, and compliance—helping Seabridge customers stay informed and ahead of the curve.
Ocean Freight Market Update
Rates Stabilise but Remain Above Pre-COVID Levels
As of 9 May, the Drewry World Container Index declined by 1% to USD 2,076 per 40ft container, continuing a modest downward trend. While this is significantly lower than the September 2021 peak of USD 10,377, rates remain 46% higher than the pre-pandemic average of USD 1,420, reflecting a structurally higher pricing baseline in the post-COVID market.
(Source: Drewry)
Transpacific Capacity Cuts Ripple into Asia–Oceania Services
Sea-Intelligence reports a 4–5% year-on-year reduction in Transpacific capacity during April–May due to a sharp rise in blank sailings. While the cuts primarily impact Asia–US lanes, the knock-on effects are being felt across Asia–Oceania networks, where vessels have been cascaded or withdrawn from rotation. Importers in Australia and New Zealand may experience reduced service frequency and more variable ETAs from China, Korea, and Vietnam.
(Source: Sea-Intelligence)
Schedule Reliability Improves, But Uneven Across Alliances
March marked the second consecutive month of improved global schedule reliability, with average performance lifting to 57.5%—the highest level since late 2023. Carriers within the Gemini Cooperation (e.g., Maersk, Hapag-Lloyd) have consistently outperformed their peers, achieving up to 90% on-time performance, while other alliances continue to lag behind.
(Source: Sea-Intelligence)
Port Performance – Australia & New Zealand
Australia
Australian terminals continue to experience prolonged congestion, particularly across the east coast. As at April:
- Sydney: 6.0-day average delay | 19% on-time
- Melbourne: 5.5 days | 24%
- Brisbane: 5.0 days | 28%
- Adelaide: 7.0 days | 12%
These delays are attributed to a combination of off-window vessel arrivals, industrial action, and constrained container handling capacity.
New Zealand
Port operations in Auckland and Tauranga remain under pressure due to terminal congestion, seasonal import peaks, and adverse weather. With berthing windows still suspended, average vessel delays in Auckland continue to sit around 5–6 days.
Customers are encouraged to build in additional lead time and maintain regular contact with their Seabridge account manager to adjust routing and delivery expectations as needed.
Air Freight Market Insight
Global Air Cargo Demand Expands, But Risks Remain
According to IATA, global air cargo demand rose 4.4% year-on-year in March, with international volumes up 5.5%. Growth was primarily driven by e-commerce, automotive parts, and high-value technology cargo.
However, several challenges are emerging:
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The removal of the U.S. de minimis threshold (previously allowing goods under USD 800 to enter tariff-free) is now affecting e-commerce flows from China, with duties now imposed on all parcels.
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Compliance burdens have increased, with U.S.-bound air freight now requiring 20 individual data elements, up from 7 previously.
(Source: IATA)
Bunker Pricing Update
The G20-VLSFO Index, which tracks very low sulphur fuel oil (VLSFO) prices across 20 major bunkering ports, rose by USD 6.50 to USD 526/MT in early May—its highest point since late April. While still within a relatively stable range by historic standards, carriers are closely monitoring price volatility and have begun applying updated BAFs (bunker adjustment factors) across several long-haul routes.
(Source: Ship & Bunker)
Biosecurity Compliance Update
Australia – Revised Khapra Beetle Import Conditions (from 28 May 2025)
The Department of Agriculture has reaffirmed that updated khapra beetle treatment protocols will come into effect for cargo certified on or after 28 May 2025. Key changes include:
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Updated declaration wording for gas-permeable packaging
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Mandatory NPPO supervision for suspended or reviewed treatment providers
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Removal of the fourth concentration sampling tube for containerised fumigations
A 10-week transition period has been provided for shipments already in transit. Importers are strongly advised to confirm that their offshore treatment providers are compliant with the new requirements.
(Source: DAFF)
New Zealand – Biosecurity Act Reform Underway
The Ministry for Primary Industries (MPI) has released consultation documents on proposed amendments to the Biosecurity Act, including changes to import health standards (IHS), compensation mechanisms, and risk-based funding models. While implementation is not imminent, importers should monitor the process closely for future compliance requirements.
Global Trade Developments
U.S.–China Tariff Suspension Signals De-escalation
On 12 May, the United States and China agreed to a 90-day mutual tariff suspension, aimed at easing trade tensions and allowing space for further negotiation. The U.S. has temporarily lowered tariffs on Chinese imports from 145% to 30%, while China has reduced tariffs on U.S. goods from 125% to 10%. Financial markets responded positively, with the Hang Seng Index rising over 3% following the announcement.
China Advances Local Supply Chain Strategy
At the same time, China is accelerating its shift toward domestic sourcing under the “Made in China 2025” initiative. Sectors including automotive, electronics, and medical devices are transitioning to local suppliers. Tesla, for example, now sources over 95% of its Model 3 components for vehicles produced in Shanghai from within China. This trend is expected to reshape global sourcing patterns throughout 2025 and beyond.
Sources
• Drewry’s World Container Index Weekly Update
• Sea-Intelligence – 2024 Schedule Reliability
• Ship & Bunker – Bunker Prices Update
• Department of Agriculture, Fisheries and Forestry
Disclaimer:
This update consolidates data from Drewry, IATA, Sea-Intelligence and Ship & Bunker. All information is current at the time of writing but may change without notice. Seabridge disclaims liability for decisions made based on these insights and recommends further consultation with logistics professionals to discuss your individual circumstances.
