Welcome to our April 2025 industry update. This month, we cover significant developments impacting Australian freight operations, including new port labour agreements, biosecurity regulation changes, and global trade dynamics influenced by U.S. tariffs and China’s economic shifts.

AUSTRALIA

Patrick Terminals & MUA Secure Long-Term Agreement

Patrick Terminals and the Maritime Union of Australia (MUA) have agreed to extend their Enterprise Agreement to December 2028. CEO Michael Jovicic praised the deal for providing stability and ensuring reliable services. The MUA highlighted productive negotiations and improved wages for 1200 workers. The agreement includes annual pay increases of nearly 5% and higher super contributions, backdated to October last year. The deal will be submitted to the Fair Work Commission for approval. Noteworthy: VICT and Hutchinson Port EBA renewals are due mid-2025.

Lachlan Valley Way Upgrades to Enhance Freight Routes

Freight operators hauling goods via the south west slopes of NSW to the Hume Highway to reach the ports of Sydney and Melbourne are just months away from a smoother ride. The NSW Government has allocated $1.2 million to improve the road surface and safety on a 1.7km section of the Lachlan Valley Way near Bowning, just six kilometres north of the intersection with the Hume Highway. The work will include rebuilding the road surface and installing safety measures, including flexible barriers.

Conclusion of the 2024–25 BMSB Risk Season

The 2024-25 Brown Marmorated Stink Bug (BMSB) risk season officially ended on 1 May 2025, so goods shipped from or vessels departing BMSB target risk countries on or after that date are no longer subject to seasonal measures—though cargoes loaded between 1 September 2024 and 30 April 2025 remain covered regardless of arrival date. Ro-Ro vessels will continue to receive Seasonal Pest Questionnaires until 30 June and may face mandatory inspections if exotic pests are reported, while master consolidators must lodge BMSB declarations for affected containers or file a NIL RISK declaration for post-May shipments. Approved Arrangement Class 19.2 entry processing remains available to facilitate both seasonal and standard biosecurity assessments, and all importers, vessel masters, agents and accredited persons are reminded to maintain year-round biosecurity diligence.

AMERICAS

U.S. Tariffs and Their Ripple Effects

The U.S. has introduced broad tariffs, including a universal 10% rate on all imports and a 145% rate on Chinese goods. While direct impacts on Australia are minimal, indirect effects through China could be significant.

• Chinese exporters may redirect lower-priced goods to alternative markets, including Australia.
• Australian exporters reliant on Chinese manufacturing (e.g., coal, LNG, iron ore) could experience reduced demand.
• The Australian dollar remains weak, potentially falling further if China’s economy slows more sharply.
• The Reserve Bank of Australia is expected to consider interest rate cuts to mitigate economic impacts.

Find out more in our latest blog.

Credit: Saul Eslake, independent economist.

Mexico’s Port of Manzanillo Expansion

Mexico has launched a major expansion of the Port of Manzanillo—Mexico’s busiest seaport and Latin America’s third-largest—aiming to boost annual container capacity from nearly four million to around ten million TEUs under President Claudia Sheinbaum’s “Plan Mexico” infrastructure agenda. Managed by the Mexican Navy, the multibillion‐dollar project is intended to spur economic growth through public investment despite the International Monetary Fund’s forecast of a 0.3% contraction in 2025 amid U.S. tariffs. Port officials report that most imports still come from Asia to support domestic manufacturing, with negligible impact from trade tensions, and the upgrade will also enhance handling of hydrocarbon products, with completion targeted by 2030.

FMC Rules ZIM Must Pay Samsung $3.7M Over Unjust Detention Fees

A US Federal Maritime Commission judge has ruled that the carrier ZIM violated the US Shipping Act and must pay Samsung Electronics America (SEA) about $3.7 million over unjustifiable detention and demurrage (D&D) charges. The complaint by SEA covered nearly 10,000 charges on almost 3,000 containers between May 2020 and June 2022, alleging ZIM unfairly billed for delays often caused by port congestion or carrier-imposed holds, despite being responsible for inland transport. The judge found some of ZIM’s cargo holds and billing practices unreasonable and in violation of the Act, although not all D&D charges were deemed ZIM’s responsibility, with some attributed to SEA’s customers; Australian shippers are reportedly monitoring further FMC decisions on similar matters, as SEA has complaints against other carriers as well.

Potential Canada Post Strike

Negotiations between Canada Post and its workers’ union, CUPW, are set to resume this week with a mediator as their current contracts expire on May 22nd, raising concerns about a potential strike next month. Following a previous strike suspension last year, an independent commission is also looking into the main issues and will provide recommendations soon. The union is pushing for improvements in pay, job security, and benefits, but Canada Post highlights its financial struggles and the need for major changes, stating it is preparing for the possibility of a work disruption if a deal isn’t reached by the deadline.

ASIA

China Tightens Regulations on Export Fraud

China has introduced new regulations to crack down on fraudulent export practices and tax evasion. As of March 28, exporters must complete tax registration before customs clearance, ending the practice of buying export licenses. The move brings stricter legal oversight and aims to ensure compliance and transparency in international trade.

Upcoming Public Holidays Affecting Shipping Schedules

• April 29–May 6: Japan’s Golden Week, with most offices and manufacturers offline.
• May 1–5: China’s Labour Day “Golden Week”, with some factories and ports working with skeleton staff.
• May 5: South Korea observes Buddha’s Birthday
• May 12: Vesak Day is a public holiday in most of the South East Asia countries including Sri Lanka, Cambodia, Malaysia, Singapore, Thailand and Singapore.

During these periods, port operations slow, terminal space tightens and inland trucking capacity is limited, leading to potential delays and congestion.

EUROPE

BYD’s Newest Cargo Ship Expected to Set Sail to Europe

BYD, the Chinese electric vehicle manufacturer, is increasingly using its own dedicated cargo ships to transport its cars to Europe and other international markets. These large car carriers, capable of holding around 7,000 vehicles and often powered by cleaner fuels like LNG, help BYD manage rising shipping costs and support its rapid global expansion. This forms part of an eight-ship fleet aimed at boosting BYD’s export ratio—currently hampered by a 27% EU tariff on Chinese electric cars.

GLOBE

IMO Approves First Global Shipping Carbon Price

The International Maritime Organization (IMO) has approved the world’s first global carbon pricing scheme for shipping, set to be formally adopted in October 2025 and begin in 2028, aiming for net-zero emissions by 2050 through fees on carbon-intensive fuels expected to generate billions for clean energy. This landmark decision, while supported by many nations and viewed cautiously by the industry as a necessary framework, faced significant opposition, particularly from petro-states, and was criticized by environmental groups and some countries for having targets deemed too weak to meet climate goals quickly enough, with the US even withdrawing from the related talks.

New Carbon Rules from IMO

The IMO also has agreed on major new, legally binding rules starting in 2027 to cut pollution from large ships. These rules have two main parts: first, ships will have to use increasingly cleaner fuels over time, measured from where the fuel is produced to where it’s burned, ensuring less carbon is released. Second, a system will be put in place where ships that pollute too much will have to pay a fee, while those that are ahead in using clean technology will earn tradable credits, encouraging everyone to switch to cleaner fuels and practices. Even though the US didn’t support it, these rules will cover over 90% of global shipping emissions. For businesses that send goods by sea, this means costs might increase in the future, and they need to start accurately measuring and tracking the pollution from their shipments now using better methods to prepare for these changes and make their supply chains greener.