Australian shipping remains one step removed from the impact of Iran’s closure of the strategic Strait of Hormuz amid the war.
Shipping Australia (SA) says Australian trade is mostly done with Asia; the Middle East region does not rank among top 10 export destinations while the United Arab Emirates is the only Gulf country in the top 10 import list.
It says its data shows that for the five-years ending in 2024, Australian cargo shipping with the Middle East was about 2.1% of the total volume.
Click here to visit the Shipping Australia website
“While our trade volumes with the Middle East are not nothing, they are far from the most significant volumes. Our trade is with Asia, the organisation said in a statement released on Friday (March 6).
“About 99.8% of all freight into and out of this country moves by sea,” it says.
SHIPPING PARTNERS
Australia’s top 10 export parties in 2023-24 were China, Japan, South Korea, India, Taiwan, Vietnam, Malaysia and Singapore; the top 10 import parties then were China, South Korea, Malaysia, Singapore, Japan, United States, Indonesia, Thailand, Taiwan and UAE.
The UAE imported 1.8 million tonnes of cargo in that time compared to just under 21 million tonnes from China.
“While we wouldn’t say we are ‘insulated’ from the Middle East conflict – everyone everywhere is going to be affected to some degree – we are one step removed,” it said.
It conceded that there will be supply chain disruptions — if the war is short, “it is likely” shipping will quickly recover; if the war is drawn out then shipping will adapt just as it did to the Houthi attacks, Somali piracy crisis, Iran-Iraq war and to every other conflict.
Shipping Australia says they are aware that all shipping have been rerouted away from the region as they wait for clarity.
“Carriers have, in many cases, advised shippers that cargo will be diverted to the next safe port. There may be the potential for onward inland transport,” the SA statement says.
The SA also says new cargo bookings across the Middle East have been suspended although there are services to select ports.
They also noted the widespread disruption to airlines and the Gulf’s aviation hubs; regional shipping relies on airlines to transfer ship crew and carry parts.
There are widespread closures, or restrictions on, ports and terminals in the region as well.
DEATHS REPORTED
The International Maritime Organisation (IMO) says that at least four seafarers were killed in an attack on a vessel stranded in the strait on Friday.
Secretary-General Arsenio Dominguez said he was “alarmed and deeply saddened” to hear of the attack in which at least four seafarers reportedly died and three were severely injured.
The IMO says about 20,000 seafarers remain stranded onboard ships in the Persian Gulf.
The Royal Navy in the UK says a tug was attacked in the strait north of Oman on Friday while the day before a tanker was damaged without casualties in Iraqi waters.
Click here to visit the World Shipping Council website.
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