Industry News

China & Asia to Australia Market Update – Capacity Constraints and Peak Season Conditions

We would like to provide an update on current market conditions affecting imports from China and the broader Asian region into Australia. Conditions have tightened significantly in recent weeks due to strong export demand, vessel capacity constraints and ongoing carrier capacity management.

Current challenges include:

• Limited vessel space across most services
• Equipment shortages, particularly 40'HC containers
• Vessel delays and schedule reliability issues
• Increased cargo rollovers, including confirmed bookings
• Longer lead times required to secure vessel space
• Congestion at several major Asian transhipment hubs

These conditions are not limited to China, with similar capacity and equipment shortages being experienced throughout Taiwan, Vietnam, India and other key Asian export markets.

A clear indication of carrier expectations is the early introduction of Peak Season Surcharges (PSS). Traditionally implemented from August, most carriers have announced PSS from 1 July this year, with surcharge levels approximately double those applied during the 2025 peak season. This reflects the strong demand environment and carrier expectations that current market conditions will continue throughout the coming months.

TCF recommends booking shipments as early as possible and providing forward forecasts where available to assist us with securing vessel space and minimising delays.

We continue to work closely with our carrier and overseas partner network to minimise disruption and will keep clients updated as market conditions evolve.

If you have any upcoming shipments or would like to discuss your supply chain requirements, please contact your TCF representative.