Newsletter

Welcome to our Feb 2026 newsletter

Shipping Market Update

Freight rates from China have eased over the past few weeks which is an unexpected development given that rates typically rise in the lead-up to the Chinese New Year holiday period. It will be interesting to see how the market responds once operations fully resume after the holiday break, as carriers are likely to pursue rate increases wherever possible. We have already received notices of Rate Restorations effective 1 March, although it remains to be seen whether these increases will hold in the current environment.

Operationally, shipping from China continues to face significant challenges. Port congestion and vessel bunching are impacting all services, with carriers blanking sailings, omitting ports, and delaying vessels in an effort to manage capacity and stabilise rates. These measures are contributing to serious delays, with Shanghai, Ningbo, and Nansha currently among the most affected ports. It is expected that these disruptions will continue in the short term as carriers work to maintain rate levels.

Europe

Services from Europe are still predominantly routing via the Cape of Good Hope rather than transiting through the Suez Canal. Earlier this year, there was cautious optimism that some carriers may return to the Suez route following improvements in parts of the Middle East, and a small number of trial transits were undertaken.However, renewed regional instability, particularly surrounding the political situation in Iran and increased US naval activity is expected to deter carriers from resuming regular Suez Canal transits for the time being. As a result, extended transit times and higher operating costs are likely to remain in place.

Transhipment Ports

Congestion continues across major transhipment hubs in Asia. Vessel bunching and blank sailings are leading to container build-ups, while feeder services are being cancelled or redeployed to alternative routes. These ongoing adjustments are creating further delays for cargo moving via transhipment ports and are adding additional pressure to already strained regional networks.

Transport Costs on the Rise Again

Transport-related costs across Australia continue to trend upward, placing further pressure on supply chain budgets.

We are still seeing ongoing increases in Terminal Access Charges being applied by stevedores around the country. Despite extensive investigations by industry groups and government bodies, which have found little justification for the continued escalation of these fees,  these increases persist. At this stage, there appears to be no immediate resolution in sight. While there is hope that regulatory intervention may eventually provide greater transparency and control over these charges, the industry has been anticipating such action for some time without meaningful change.

Industry is experiencing an increase in waiting times at container terminals (DP World & VICT in Melbourne & DPW & Hutchison in Brisbane) and some Empty Container Park facilities. In Melbourne, trucking costs have also risen following the opening of the new West Gate Tunnel. While the tunnel is designed to improve truck access to the port, its introduction comes with new restrictions and additional tolling. Several inner-west roads are now closed to trucks, and heavy commercial vehicles are subject to increased toll charges when operating in and around the port precinct. These changes are contributing to higher local transport costs.

Further west, there is potential for disruption in Fremantle due to the closure of the Fremantle Traffic Bridge, which services the port area. The bridge is expected to remain closed for approximately 12 months while it is replaced. During this period, detours and increased congestion are likely, potentially resulting in delivery delays and additional transport expenses.

We will continue to monitor these developments closely and keep you informed of any further impacts to transport operations.

EU Free Trade Agreement

Talks toward a long-anticipated Australia-EU free trade agreement are once again underway after years of stalemate. The focus remains on securing meaningful market access for Australian exporters, especially in agriculture, while ensuring any deal serves Australia’s national economic interests. Both governments have reiterated their commitment to a balanced agreement, and recent high-level meetings in Brussels signal positive momentum, though key issues still need resolution before a final deal is reached.

Both sides appear determined to reach a deal, with renewed optimism influenced in part by global trade uncertainty and interest in diversifying trading partnerships. While no formal conclusion date has been announced, Australian negotiators are in Brussels this month for crucial discussions that could shape near-term prospects for an agreement.

New Client Portal Reminder

We’d like to remind all clients that our new online portal is now available, providing you with real-time access to your shipment information.

Through the portal, you can track shipments, view key milestones, and retrieve important documentation and reporting data whenever you need it, all in one convenient location.

If you haven’t yet received your login details, please contact your usual CFL representative who will be happy to assist. Alternatively, you can access the portal via the link below and request access.

We encourage all clients to take advantage of this tool to streamline visibility and reporting across your shipments.