News

Fracht Australia Logistics News - June 2025

3/6/2025

AROUND THE WORLD 

• TAIWAN MINISTRIES ACT to mitigate effect of trade war on agriculture exports. Taiwan’s transport and agriculture ministries are working together to mitigate the impact of US tariffs on the island’s agricultural exports. Its exports face a 32% tariff, and the Ministry of Agriculture is offering shipping subsidies to offset the impact on the island’s export competitiveness. Farmers and other agricultural enterprises can also expect to receive discounted interest rates on loans.
• US TRADE REPRESENTATIVE expands scope to all car carriers. The fee will be applicable from October this year on any foreign built vehicle carrier, and set at USD0 for 180 days, and will then be set at USD150 per CEU (Car Equivalent Unit) capacity of the entering non-US built vessel. USTR announced late last week. “A vessel operator will be eligible for a fee remission for three years if it orders and takes delivery of a US-built vessel of at least equivalent size.” Of somewhere over 850 Pure Car and Truck Carriers in service today, the US has built just one – in 2005, the 2,500 CEU Jean Anne, which operates exclusively in the US West Coast-Hawaii trade for the San Francisco-based Pasha Group.
• ROAD FREIGHT DECARBONISATION will be a battle. A recent IRU (International Road Transport Union) member survey revealed “operators face issues all along the decarbonisation spectrum, starting with their clients not willing to absorb the extra costs, especially in Australia and Europe, and that technologies are largely considered not ready for both of these regions”, said its head of research, Romain Mouton. Many operators also reported having neither the funds nor incentives from governments to acquire the necessary technologies to reduce emissions.
• SERVICE CHAOS FROM TRADE BAN WITH INDIA a problem for Pakistani shippers. Pakistan’s main container gateways of Karachi and Port Qasim are reportedly facing serious congestion after mainline carriers halted direct calls there in the wake of the trade ban with India. The disruption followed a 2 May order by New Delhi, preventing carriers from moving Pakistan-origin cargo through Indian ports – counter restrictions were quickly announced by the Pakistan government. 

SEAFREIGHT NEWS 

• OUTLOOK FOR CONTAINER SHIPPING ‘more uncertain now than at the onset of COVID’. Shippers are advised to prepare for “difficult operational and shipping conditions” as maritime analyst Drewry today revealed grim demand predictions for container throughput. As the US administration “takes a chainsaw to the rule books on governance, foreign diplomacy, and international trade”, the outlook for container shipping is “more uncertain now than it was at the onset of the Covid virus”, said Simon Heaney, senior manager of container research at Drewry. Drewry revealed “a much more pessimistic container demand outlook” than last month, with Mr Heaney adding: “There are going to be very few, if any, upsides for container shipping from this trade war.”
• MOL SIGNS UP WITH CLIMEWORKS for direct air carbon capture and storage. Shipping line MOL has become the second ONE partner investing in direct air carbon capture and storage (DACC), with a deal announced with Climeworks. The latest deal makes the carrier Climeworks’ first shipping customer, and first Japanese customer. DACC will be used to remove 13,400 tonnes of atmospheric CO2 by 2030, offset against that generated by MOL’s fleet.
• BYD MARKS DELIVERY OF WORLD’S LARGEST CAR CARRIER. Electric vehicle manufacturer BYD has taken delivery of the world’s largest capacity car carrier from shipbuilder China Merchants. BYD Shenzhen was named in a ceremony on 22 April in Yizheng China, with the vessel currently underway on its maiden voyage from China to Brazil. The 219-metre LOA (length overall) vessel, is part of a four-ship class designed by Deltamarin, and has capacity to carry 9,200 vehicles. BYD Shenzhen surpasses in capacity Hoegh Aurora, Höegh Autoliner’s first Aurora-class vessel, which has a capacity of 9,100 cars.
• HOEGH AUTOLINERS HAS ‘SOLID’ FIRST QUARTER. Oslo’s Hoegh Autoliners has continued to report solid financial performance in the first quarter of 2025, with gross revenue of USD329 million / NOK3,559 million. EBITDA of USD155 million / NOK1,671 million and NPAT of USD155 million / NOK1,672 million. The company reported a historically strong contract backlog and increase in contract share of ~7% from Q4 2024, having signed two long-term contracts with two major international car producers, each valued at above USD100 million.
• GOOD FIRST QUARTER FOR HAPAG LLOYD AND ONE. The year got off to a good start for liners Hapag-Lloyd and Ocean Network Express (ONE), but they believe it could be downhill from here. In its Q1 25 earnings statement, Hapag-Lloyd revealed an operating result “significantly up, compared with Q1 24”, reporting a 17% increase in EBITDA, to USD1.1bn, and EBIT up 24%, to USD500m. ONE today told shareholders its 2024 earnings report had “significantly improved” from the year before. Ebit for last year was USD3.8bn, up 871%, and EBITDA was just over USD5.9bn, up 192% from 2023’s USD$2bn. However, for its full year forecast, Hapag-Lloyd was less optimistic in a market characterised by “many uncertainties” and expects lower results for 2025 as a whole. Meanwhile, ONE presented shareholders with two full-year outlooks, based on “the prevailing geopolitical landscape and the significant economic instability introduced by recent tariff developments in April”.
• STRONG FIRST QUARTER FOR MAERSK. AP Moller-Maersk has lobbed a strong first quarter result, reporting revenue growth of 7.8% to USD13.3 billion with EBIT increasing to USD1.3 billion from USD177 million a year ago. These results, while sequentially down as expected, represent a good start to the year and were driven by solid profitability in Ocean, operational improvements in Logistics & Services and higher volumes in Terminals, Maersk said. For the full year 2025, Maersk maintains its financial guidance despite the increased uncertainty leading to a more cautious container volume growth outlook.
• WALLENIUS WILHELMSEN ENJOYS SOLID Q1. Yet to feel the impact of the Trump Administration’s tariffs on car imports and planned port charges on all PCTCs, Wallenius Wilhelmsen has delivered a strong Q1 2025, with a 5% YoY increase in EBITDA to USD462 million. Total revenue for Q1 was USD1,297 million, up from USD1,255 million for the same period last year. Net profit also increased YoY, with a total of USD246 million in Q1 2025, an increase of 22% from Q1 2024. “We delivered solid financial results despite seasonally low volumes, soft H&H markets, and an uncertain market environment,” Lasse Kristoffersen, WW president and CEO, said.
• MIXED QUARTER FOR TAIWANESE CARRIERS. Evergreen and Yang Ming, respectively the world’s seventh and tenth largest container carriers, sailed different courses during the first quarter of 2025, according to figures released to the Taiwan Stock Exchange.  Evergreen Marine Corporation (Taiwan) Ltd racked up revenues of TWD110.0 billion (USD3.6 billion), which was an increase of 24.1% year-on-year on the first quarter of 2024 (TWD88.6 billion).  Operating profit was TWD29.3 billion (+87.4%) and net income TWD27.8 billion. Yang Ming Marine Transport Corporation reported Q1 2025 consolidated revenues of TWD45.51 billion (USD1.38 billion), which was marginally down on 2024’s USD1.39 billion. Operating profit was TWD7.2 billion (-8.5%) and net profit TWD7.8 billion (-16.9%).
• CMA CGM SHIPPING LINE reported an average growth of Q1 by 4.2%. The French shipping group carried 5.85m TEU, up exactly 4.2%, in the period, increasing revenue 11.5%, to USD8.75 billion. Ebitda was up 30%, to USD2.53 billion, while the ebitda margin was up 4.1 percentage points to 28.9%. Average revenue per TEU (twenty foot equivalent unit) was USD1,498, up 7.1% year on year.
• WALLENIUS MOVES TO FULL OWNERSHIP OF NZ’S ARMACUP. Scandinavia’s Wallenius Wilhelmsen has moved to 100% ownership of New Zealand’s Armacup, which originated the Japanese used car trade to Kiwiland in 1989 and has been steadily expanding ever since. After a long period of co-operation Wallenius Wilhelmsen first bought 65% of Armacup in 2022, with provision at that time to increase to outright ownership. The companies say that agreement has now been finalised and the transaction closed on 30 April 2025.
• NEW TONNAGE FOR NPDL. Neptune Pacific will introduce a new acquisition to its NZPAC service early next month, continuing a five-year, USD150 million investment by the line to modernize its South Pacific fleet. The 2,192 TEU Neptune Matua was acquired in April, with NPDL taking delivery in Valencia, Spain, ahead of its journey to New Zealand, before embarking on its maiden NZPAC voyage to Fiji. It will replace the drydocking Capitaine Tupaia in the service.
• DENMARK TO LAUNCH ‘WORLD FIRST’ REMOTE PILOTAGE. Danpilot, the state-owned pilot service of Denmark, has announced it is initiating a test program for remote pilotage alongside Danelec, a maritime data collection and analytics specialist. The test program created by DanPilot and Danelec allows pilots to guide ships from land, using only advanced data transmitted directly from the vessels. Described by the parties as a world first, the program will now go ahead after receiving approval from the Danish Emergency Management Agency.
• CREW SAVED AS MSC BOX SHIP SINKS. Liberia-flagged container vessel MSC Elsa 3 capsized off India’s Cochin coast on Sunday 25 May, sparking serious environmental concerns of oil spillage and hazardous cargo. According to the marine and transit claims consultancy WK Webster, the vessel “developed a severe list in monsoon weather conditions, in a position approximately 38 nautical miles south-west of India on 24 May and subsequently sank on 25 May”. The vessel was en route from Vizhinjam port, India’s newest transhipment hub, to Cochin port (Vallarpadam), part of MSC’s growing container relay traffic. It had some 640 containers on board, with 25 registered as containing dangerous cargo, including calcium carbide, according to industry updates. 

AIRFREIGHT NEWS 

• CATHAY CARGO has announced it will bring a weekly service to Brisbane Airport. Cathay said the flight, which previously operated out of Wellcamp Airport, will be moved to Brisbane Airport to streamline operations after a thorough review of processes. Set to begin on 17 June this year, the weekly flight from Brisbane Airport will be a shared service with Sydney and Melbourne and will complement the cargo capacity Cathay Cargo already has available on Cathay Pacific’s 12 weekly passenger flights from Brisbane to Hong Kong.
• AIR CARGO RATE GROWTH NARROWS and the market outlook is daunting. Air cargo freight rate improvements continued to narrow in April amid weakening demand, geopolitical tariff tensions and a drop in jet fuel prices. While global air cargo volumes grew 4% year on year in April, global air cargo spot rates rose just 3% year on year, a second consecutive month of only a single-digit increase, said Xeneta, and continuation of a narrowing of the growth rate. Rates were up 17% in January, 10% in February and 6% in March.
• CHINA AIRLINES has formally ordered four 777-8 freighters from Boeing following its announcement in December that it planned to invest in the new generation cargo aircraft model. The firm order was booked in March and was listed as unidentified amongst Boeing's orders and deliveries data, Boeing confirmed in a press release on 8 May. The airline added that the 777-8Fs complemented the existing Boeing 777Fs in its fleet, but the increased range and payload offered more operational flexibility. In addition to the four confirmed 777-8Fs, the airline has the option to purchase four additional 777-8Fs.
• EMIRATES SKYCARGO reported improvements in both cargo volumes and revenues in its last financial year as further freighter capacity was added. The Dubai-headquartered cargo business recorded a 7% increase in cargo volumes to 2.3m tonnes while cargo revenues improved by 18% to AED16.1bn in the financial year running to 31 March 2025. The company said performance was boosted by the delivery of two new Boeing 777 freighters and two wet-leased Boeing 747 freighters.
• QATAR AIRWAYS CARGO looks to strengthen trade connections and expand its capacity to and from Australia through its new partnership with Virgin Australia. One of the world’s largest air cargo carriers, Qatar Airways currently offers over 240 tonnes of cargo capacity each way, each week into the key Australian cities of Melbourne, Sydney, Brisbane and Perth, but with the addition of Virgin Australia’s flights, Qatar says total cargo capacity will increase to more than 400 tonnes. Starting in June, Virgin Australia will operate daily Boeing 777 flights between Sydney, Brisbane, Perth, and Doha, Qatar, with 129 tonnes of cargo capacity each way between Doha and Perth, 30 tonnes each way for Brisbane, and 21 tonnes each way for Sydney, with the widebody belly-hold services expected to bring substantial uplift potential.
• CATHAY CARGO has reported reduced air cargo demand from Hong Kong and the Chinese Mainland in May following tariff and de minimis changes, but said volumes from other parts of its network are helping to fill the gap. WorldACD data shows airfreight volumes from China and Hong Kong to the US have declined since the end of the de minimis exemption covering Chinese e-commerce packages in early May. The US and China have since paused their trade war for 90 days, reducing tariffs from 145% to 30%. Non-postal e-commerce packages from China are subject to the 30% tariff rate while packages being transported through postal networks face a 54% (or a USD100 flat fee) rate.
• IATA REPORTS AIR CARGO DEMAND CLIMBS AGAIN IN APRIL. Seasonal demand, front loading of shipments to avoid tariffs and lower fuel prices helped air cargo demand rise again in April, but airlines need to remain ready for trade changes, IATA has warned. The trade association said that total demand, measured in cargo tonne km (CTK), rose by 5.8% year on year. Month-on-month, demand also rose by 2.3%. Demand rose 4.4% year on year in March due to front loading of cargo. 

OCEANIA PORTS 

• PORT OF TOWNSVILLE PLANS MULTI-MILLION-DOLLAR WORKS. The Port of Townsville has announced the construction of a multi-million-dollar Project Cargo Laydown Area at its East Port Precinct, providing North Queensland with critical enabling infrastructure. PoT said the 14-hectare laydown facility will support future industry development and renewable energy projects across the region.
• GERALDTON IDEAL FOR GREEN HYDROGEN EXPORTS, study says. Mid West Ports at Geraldton in Western Australia is set to become a key player in the export of green hydrogen and ammonia to Europe. New research shows the port is well placed to export hydrogen from the Oakajee Strategic Industrial Area (SIA) according to a Trilateral Hydrogen Hub Feasibility (TrHyHub) Study. The study is a joint initiative between the State Government, Mid West Ports Authority, the Netherlands’ Port of Rotterdam, and Germany’s Fraunhofer Institute for Solar Energy Systems which investigated the potential to deliver a clean energy supply chain between the SIA and Germany. A State Government media release said that according to the study, exporting green ammonia through Oakajee SIA could be feasible through a single point mooring solution, with the Mid West offering a unique combination of excellent renewable energy potential, high land availability, and political stability.
• DP WORLD TO OPEN PORT OF MELBOURNE CONTAINER PARK. DP World has reportedly partnered with OneStop to implement OneStop Modal and the OneStop Vehicle Booking System (VBS) at the facility. “This marks another step towards DP World adopting OneStop Modal (as has occurred at their Brisbane Container Park) rather than the other major provider of Park operating systems and truck arrival notification platform,” the CTAA said. All container movements at DP World Coode Road will require a timeslot booking via the OneStop VBS. OneStop said of the development, “When paired with the OneStop VBS, the Coode Road facility will benefit from optimised truck scheduling, reduced congestion and improved servicing capabilities”.
• NAPIER PORT REPORTS STRONG PERFORMANCE IN FIRST HALF 2025. As the freight gateway for New Zealand’s central to lower North Island, Napier said its result was underpinned by a solid uplift in container cargo volumes, a marked increase in DL Rand transhipment activity, and the continued benefits of disciplined cost control and effective yield management. Revenue for the half year rose 10.6% to NZD78.1 million from NZD70.6 million in the same period last year and was led by growth in container services revenue. Container services revenue for the half year increased 27.2% to NZD42.7 million from NZD33.6 million following a 13.9% increase in container volumes to 112,000 TEU, compounded by a 11.7% increase in average revenue per TEU. 

CUSTOMER SERVICE 

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