Six weeks into the Gulf conflict, the de-facto closure of the Strait of Hormuz has forced container lines serving Australia to re-route via the Cape of Good Hope, adding 10–14 days to transits and triggering a cascade of emergency bunker, war-risk and conflict surcharges. Melbourne-based forwarder D&D Worldwide Logistics told clients on 7 April that every major carrier on Australia–Europe, Australia–Middle East and related trades now levies extra fees of up to USD 3,500 per 40-foot box. The ripple effects extend well beyond freight budgets. Exporters of chilled meat, dairy and citrus report rising spoilage risk as shipments spend an extra fortnight at sea, while fertiliser importers worry about supply bottlenecks ahead of spring planting. Air-cargo rates to Europe have jumped 35 per cent as Gulf carriers Emirates, Qatar and Etihad—who normally lift 13 per cent of global air freight—battle hub closures and slot constraints. With former U.S. president Donald Trump’s 8 April ultimatum to Iran looming, scenario-planners fear military escalation could shut Gulf airspace entirely, compounding the crisis. Even a ceasefire would not resolve the backlog quickly: analysts at Eurasia Group say it will take at least two months for insurers to reinstate cover and for carriers to return vessels to Hormuz routes. Australian companies with Europe-bound supply chains are urged to review inventory strategies, lock in forward freight rates where possible and verify cargo-insurance clauses—standard bills of lading exclude war risks. Shippers using northern Australian ports face an additional General Rate Increase from ANL on 16 April, further raising landed costs for exporters in mining and agriculture. The one silver lining is the recent Australia–EU Free Trade Agreement, which will eventually see almost 98 per cent of Australian goods enter Europe duty-free. For now, however, higher freight spend is likely to outweigh tariff savings, making price-recovery discussions with customers inevitable.
Source: D&D Worldwide Logistics
