Stay ahead with the main freight market updates for the month of June, including added air freight services in Australia and the nearing completion of the new Sydney Airport. Progress continues on Australia’s strategic fleet pilot program, while airfreight demand from Asia to the US surges ahead of key July deadlines. Meanwhile, congestion at Europe’s major ports persists, and tensions ease globally with a ceasefire between Israel and Iran leading to the reopening of Gulf airspace.

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AUSTRALIA

Added Air Freight Services in Australia

Cathay Pacific is increasing its flight frequency from Brisbane and Perth to Hong Kong from 26 October 2025. The expansion will see Brisbane flights rise from 12 to 14 per week, and Perth flights increase from 11 to 14 per week.

Qantas Freight will commence new direct freighter services between Sydney and Shanghai on 26 June 2025. The twice-weekly services depart on Thursdays and Saturdays, marking the first time regular Red Tail A330 freighter flights operate between these two major cargo hubs.

Beware of too-good-to-be-true “tariff workaround” schemes!

Some foreign suppliers may encourage routing Chinese-made goods through countries with lower tariff rates. This is illegal transshipment and importers are liable, warns the US CBP Office of Trade. This bad advice often targets entrepreneurs who don’t know how much risk they’re assuming. Consequences include: seizure of valuable inventory, criminal charges, business disruption, steep fines, and loss of importing privileges.

New Sydney Airport Nears Completion with Terminal Unveiling

Western Sydney International (Nancy-Bird Walton) Airport (WSI) has reached a significant milestone with the completion of major construction works and the official unveiling of its state-of-the-art terminal. This development brings Sydney’s new 24-hour airport closer to its scheduled opening for passenger and cargo services in late 2026. The terminal integrates advanced sustainability features like solar panels, a climate-responsive façade, and rainwater harvesting, making it one of the world’s most environmentally advanced airports.

“Google Maps for the Sea“

An exciting breakthrough from Australia! UNSW’s Associate Professor Shane Keating has developed an AI-powered algorithm that optimises shipping routes by harnessing the power of ocean currents, particularly ocean eddies. The algorithm is like a Google Maps for the sea, giving the most efficient route in real time based on the behaviour of ocean eddies. Shipping lines can save money and meet their emissions reductions targets without any modification to the vessel or change in the vessel transit time. He hopes that within the next 5 years, this research will change the way that ships cross the ocean.

Warning: LCL pallets arriving non-compliant

An increasing number of export LCLs are arriving at CFSs (Container Freight Stations) without meeting ISPM15 wood packaging requirements. This is causing avoidable delays and extra handling costs for many exporters.

Any wood packaging used must display visible ISPM 15 treatment stamps on the exterior of pallets for proper inspection. Stamps located on the inside or underside are not acceptable. Pallets arriving completely shrink-wrapped also make it unviable to check without unwrapping.

It is the shipper’s responsibility to make sure that all wood packaging meets export standards before cargo is delivered to the terminal.

To find out the requirements of each country of destination, you can refer to AQIS website here: https://www.agriculture.gov.au/biosecurity-trade/export/certification/wood-packaging

Importers, Take Note: Fire-Prone Cargoes Under Scrutiny

The Cargo Integrity Group has reissued warnings about ‘reactive hazard’ cargoes, items that pose a high fire risk under certain conditions and have caused multiple incidents due to errors or oversight. While many are regulated under Dangerous Goods (DG) rules, the group urges strict compliance with IMDG and CTU Codes to prevent disasters. High-risk items include:

• Calcium Hypochlorite – used in water treatment, decomposes rapidly with heat or contamination
• Charcoal – especially with ignition accelerants; DG declaration mandatory from Jan 2026
• Cotton, Wool, Fishmeal, Krill, Seed Cake – can self-heat and ignite if mishandled
• Lithium-Ion Batteries – risk fire, toxic gas release, or explosions if damaged or aged

Importers are urged to stay informed and ensure all parties in their supply chain are aware of the risks.

Progress towards Australia’s strategic fleet pilot program 

Federal Infrastructure and Transport Minister Catherine King announced that the Australian government is nearing the final stages of tender evaluation for three privately-owned ships, which will form the foundation of a five-year pilot program for a strategic fleet. She also emphasised the government’s commitment to decarbonisation, supporting International Maritime Organization efforts and envisioning a sovereign biofuels industry. King also mentioned a review of the Coastal Trading Act, a policy announced in the second half of last year. 

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ASIA

Race to get goods ex-Asia to the US by air as July deadlines loom

Airfreight demand from Asia to the US is rising sharply ahead of the 4 July and 9 July deadlines, but not from China—where demand has slumped. Instead, there’s strong outbound demand from Southeast Asia and Taiwan, causing capacity constraints and rising rates. Intra-Asian capacity has slightly improved, but not enough to meet the sudden growth. China’s airfreight activity, traditionally dominant, has fallen behind this year as Southeast Asia and Taiwan take the lead.

100% China-made chips for Chinese vehicles from 2026

China wants self-reliance in chips amid intensifying tensions with the US. Racing to meet China’s drive to reduce dependence on foreign chip suppliers, automakers including SAIC Motor, Changan, Great Wall Motor, BYD, Li Auto, and Geely are among those aiming to have cars with 100% China-made chips from 2026. Two automakers are aiming to have mass production as early as 2026 with the newest versions of existing lines.

South Korea’s own wind-assisted ship sailing device

HD Korea Shipbuilding & Offshore Engineering has unveiled its Hi-Wing, a 30 m high hard sail that can be folded down in bad weather to protect navigational stability. The prototype has gone through land trials and will be tested at sea on a tanker belonging to HMM. 52 wind-assisted ships are now in operation, 97 newbuilds with wind tech in the orderbook as of Jan 2025, and more ships earmarked for retrofitting.

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EUROPE

Congestion at Europe’s Major Ports Remains

European ports are facing severe congestion, with major hubs like Rotterdam, Antwerp, and Hamburg overwhelmed due to a combination of Donald Trump’s shifting tariff policies, low river levels, and increased Asian imports diverted from the US. Barges and container ships are experiencing days-long delays, and logistics networks are under strain, with some warning the disruption could last for months. Terminal operators are scrambling to add capacity and staff, but the industry warns that a full resolution may take years.

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AMERICAS

Update on U.S Aluminum and Steel Tariffs

On 3 June, President Trump announced an increase in tariffs on aluminum and steel imports, raising the rate from 25% to 50%, effective 4 June. The revised measures also extend to certain products containing aluminum or steel, not just the metals themselves.

Importantly, the additional tariffs now apply only to the actual aluminum or steel content within products classified under Chapters 73 (steel) and 76 (aluminum) of the U.S. tariff schedule, rather than the full value of the finished goods as previously applied.

Since the initial announcement, U.S. Customs and Border Protection has revised the list of affected products, removing some specific tariff codes. As a result, certain aluminum and steel products are no longer subject to the increased tariffs.

The aluminum and steel HTS numbers which have now been deleted from the original CSMS include:

Aluminum: 8418.10.00, 8418.40.00, 8418.30.00, 8422.11.00, 8450.11.00, 8450.20.00 8451.21.00, 8451.29.00, 8516.60.40

Steel: 8418.10.00, 8418.40.00, 8418.30.00, 8422.11.00, 8450.11.00, 8450.20.00, 8451.21.00, 8451.29.00, 8516.60.40, 9403.99.9020.

Trans-Pacific Shipping Slowdown Expected

While Asia-Europe container shipping is entering a strong peak season with spot rates already up significantly, the outlook for Trans-Pacific trade between Asia and the US is expected to slow down considerably in the second half of 2025. This is largely due to shippers having already imported massive amounts of goods (frontloading) to beat potential new US tariffs, leaving them with overstuffed inventories. Even if tariffs don’t increase after the upcoming deadlines in July and August, analysts predict a significant drop in demand and shipping rates on the Trans-Pacific route, following a brief surge into US West Coast ports as the last of the frontloaded cargo arrives.

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WORLD

The ceasefire between Israel and Iran has calmed fears of disruptions in the Strait of Hormuz, and Gulf states that had closed airspace have reopened.