KONNECT - APRIL 2025

Contents

• Executive Summary & Business Tip
• Market Trend
• Spotlight
• Ocean Freight Updates
  • Ocean Freight Snapshot
• Air Freight Updates
  • Air Freight Snapshot
• Customs, Inland Transport, Terminal & Regulation Alerts

Executive Summary

We are now KLN.

Kerry Logistics Network Limited has announced a rebranding initiative to change its name to KLN Logistics Group Limited. This strategic move aims to establish a more unified corporate identity and strengthen the company's brand positioning in the global logistics market. This change reflects the company's commitment to evolving its operations and services.

Escalating trade tensions dominated headlines this month, with the United States implementing sweeping tariffs on imports from Canada, Mexico, China, and the EU. New measures include 25% duties on vehicles, steel, and aluminum, as well as proposed port fees for Chinese-built vessels. The retaliatory responses from affected nations have intensified concerns of a full-scale global trade war. These developments are fueling supply chain volatility and prompting businesses worldwide to reassess sourcing strategies and logistics flows.

In parallel, new disruptions emerged from natural and operational causes. A powerful earthquake in Myanmar has compromised critical infrastructure, affecting regional cargo movement. Meanwhile, as shipping lines prepare to resume Red Sea transits, industry experts are warning of potential port congestion and rising detention charges. In response to market imbalances, carriers continue to deploy blank sailings to counter softening demand and declining freight rates, particularly on transpacific and Asia-Europe routes.

Closer to home, Oceania businesses face growing compliance pressures stemming from the new U.S. tariffs and their indirect effects on customs and biosecurity operations. In Australia and New Zealand, infrastructure investments like the Melbourne Airport Rail Link and Auckland’s terminal upgrades aim to enhance long-term freight efficiency, although short-term disruptions are expected in April. The foot-and-mouth disease outbreaks in Hungary and Slovakia have also triggered strict import suspensions, reinforcing the importance of agile customs processes.

In the air freight sector, German airport strikes and fluctuating e-commerce demand have disrupted operations, while overcapacity concerns persist. A shift toward sea freight for certain e-commerce volumes is influencing air cargo rates, though high-tech sectors like semiconductors are supporting air freight demand. Meanwhile, major acquisitions and regulatory delays, such as the postponed ANA–Nippon Cargo deal, reflect ongoing consolidation pressures in the industry.

Economic indicators in Oceania show mixed momentum. Australia is targeting fiscal resilience through tax cuts, though resource exports are tapering off. New Zealand posted positive Q4 GDP growth and is revising investment rules to attract capital inflows. New trade talks with India and renewable infrastructure projects reflect a broader push toward long-term sustainability and diversification, as both nations navigate a complex global economic environment.

Business Tip

Don't Wait to Diversify Your Supply Chain: With tariffs, natural disasters, and regulatory changes hitting global logistics, companies that spread sourcing across multiple regions are proving more resilient. Start by mapping critical dependencies and identifying alternate suppliers in Southeast, South Asia, or even nearshore options. Diversification isn’t just about cost—it’s a strategic buffer against disruption.

KLN Oceania can help you discuss strategies and support you in negotiations.

Spotlight

Wherever your business goes, we're already there.

Kerry Logistics is now KLN. 

From now on:

• You can find us as KLN Oceania on our social media platforms (if you haven't yet, why not follow us there?)
• Our emails now come from @kln.com (make sure to add it as a safe domain to get all our communications)
• Our Premier Oceania Logistics & Supply Chain Newsletter is now Konnect
• Our website is now www.oceania.kln.com

Market Trend

In recent weeks, the global trade landscape has been significantly impacted by a series of tariff implementations and proposals initiated by the United States. These actions have prompted swift responses from significant trading partners, leading to heightened tensions and uncertainty in international markets.​

U.S. Tariff Actions and International Responses

On March 4, 2025, the U.S. imposed a 25% tariff on imports from Canada and Mexico, with specific exemptions such as a reduced 10% tariff on potash. In retaliation, Canada implemented tariffs on $21 billion worth of U.S. goods, including steel, aluminum, and various consumer products. Similarly, Mexico announced plans for countermeasures, although specific details are pending. The U.S. also increased tariffs on Chinese imports from 10% to 20% on the same day, leading China to impose tariffs ranging from 10% to 15% on U.S. coal, liquefied natural gas, crude oil, and agricultural machinery. ​

Further escalating trade tensions, President Trump announced a 25% tariff on all foreign-made vehicles, effective April 3, 2025. This measure is part of the administration's "Liberation Day" initiative to reduce reliance on foreign goods. The tariffs are expected to increase the average cost of imported vehicles by $5,000 to $10,000.

Proposed Port Fees on Chinese-Built Ships

In addition to tariffs, the U.S. Trade Representative has proposed imposing substantial fees on Chinese-built vessels docking at American ports. The proposed fees include up to $1.5 million per port visit for ships constructed in China and additional charges for fleets with a significant percentage of Chinese-built vessels. This initiative aims to counter China's dominance in shipbuilding and maritime logistics. ​

However, this proposal has faced criticism from various U.S. industries. Executives from the maritime sector warn that such fees could increase operational costs for American ship operators, disrupt supply chains, and lead to job losses at ports. Farmers and exporters express concern that the added expenses may reduce the competitiveness of U.S. agricultural products in international markets. Critics also highlight that U.S. shipyards cannot currently produce large ocean-going vessels, making it challenging to reduce dependence on Chinese-built ships soon. ​

Potential for a Global Trade War

The cumulative effect of these tariffs and fees has raised fears of a broader trade war. The European Union has signaled intentions to impose retaliatory tariffs on American products, including whiskey and motorcycles, in response to U.S. trade measures. Such actions could further disrupt global supply chains, increase costs for consumers and businesses, and create uncertainty in international markets.

Current U.S. Tariffs and Their Impact on Global Trade and Supply Chains

The United States has recently implemented several tariffs affecting various imports. Below is a summary of the key tariffs currently in place:​

• Steel and Aluminum Products: Effective March 12, 2025, the U.S. imposed a 25% tariff on imported steel and aluminum products from all countries, including Australia. This action reversed previous exemptions and has significant implications for exporters in these industries. ​
• Automobiles and Auto Parts: Starting April 3, 2025, a 25% tariff was applied to imported passenger vehicles and light trucks. Key automobile parts such as engines, transmissions, powertrain components, and electrical systems are also subject to this tariff. ​
• Imports from Canada and Mexico: A 25% additional tariff has been imposed on imports from Canada and Mexico, with a reduced 10% tariff on energy resources from Canada. ​
• Chinese Imports: An additional 20% tariff has been levied on a wide array of Chinese goods, affecting industries such as electronics, textiles, and machinery. ​

Impact on Global Supply Chains and Trade

These tariffs have introduced significant disruptions to global supply chains, leading to increased production costs and logistical challenges. Industries reliant on international sourcing are compelled to reassess their supply strategies to mitigate the financial impact. Key consequences include:​

• Increased Production Costs: Tariffs on essential components like steel and aluminum have escalated manufacturing expenses. For instance, the 25% tariff on steel imports has raised costs for products such as screws and bolts, which are integral to various manufacturing processes. ​
• Supply Chain Reconfiguration: Businesses are exploring alternatives such as reshoring (bringing production back to the U.S.), nearshoring (relocating production to neighboring countries), and diversifying supplier bases to reduce reliance on tariffed imports.​
• Market Uncertainty: The imposition of tariffs has led to volatility in global markets, affecting investor confidence and causing fluctuations in stock prices, particularly within the automotive and manufacturing sectors. ​

Impact on the Oceania Region

The Oceania region, particularly Australia, has been directly affected by these U.S. tariffs:​

• Steel and Aluminum Exports: The 25% tariff on steel and aluminum imports has impacted Australian exporters in these sectors. Although these exports represent less than 0.2% of the total value of Australian exports, the tariffs contribute to broader trade uncertainties.
• Agricultural Products: Discussions within the U.S. have included potential tariffs on Australian agricultural products. Notably, a U.S. congressman has proposed a 70% tariff on Australian Wagyu beef. While this proposal has not yet been enacted, it underscores the potential for expanded trade barriers affecting Australian exports. ​

Australian Government's Response

The Australian government has expressed strong opposition to these tariffs, labeling them as "entirely unjustified" and "not a friendly act." Prime Minister Anthony Albanese has indicated that Australia will not retaliate with reciprocal tariffs but will continue to seek exemptions through diplomatic channels.

The current U.S. tariff landscape is reshaping global trade dynamics, compelling businesses to adapt their supply chain strategies. While these measures aim to bolster domestic industries, they also present challenges that necessitate careful navigation to sustain profitability and market stability.

Myanmar Earthquake Impacts Supply Chains: Delays Expected

A 7.7-magnitude earthquake struck central Myanmar on March 28, 2025, causing significant loss of life and infrastructure damage. The epicenter was near Mandalay, the country's second-largest city, leading to widespread devastation in the region. ​

The earthquake has severely disrupted Myanmar's infrastructure, with key bridges, highways, and railways sustaining significant damage. These disruptions are expected to impact supply chains, causing delays in the movement of goods both domestically and internationally. Shippers are advised to anticipate potential delays and consider alternative routes where feasible.

International aid is being mobilized to support relief efforts in response to the disaster. However, the extent of the damage to transportation networks is likely to pose challenges for logistics operations in the affected areas. Businesses with supply chain operations linked to Myanmar should stay informed about ongoing developments and adjust their logistics planning to mitigate potential disruptions.​

Upcoming U.S. Tariffs Pose Challenges for American Importers

The U.S. government is set to implement a series of tariffs in early April, including a 25% duty on imported vehicles. These measures will directly impact U.S. importers, designated as the 'importer of record' and responsible for remitting payments to U.S. Customs & Border Protection (CBP).

The Global Shippers Forum (GSF) has highlighted these tariffs' significant financial and operational challenges. Importers must now make critical decisions regarding their supply chains, weighing options such as absorbing the additional costs, renegotiating supplier agreements, or seeking alternative sourcing strategies.

Given the complexity of these developments, it is essential for businesses engaged in importing to stay informed and consult with trade and logistics experts. Proactive planning and strategic adjustments will be key to navigating the evolving trade landscape and mitigating potential disruptions.

Preparing for the Resumption of Suez Canal Transits

As shipping lines prepare to resume operations through the Suez Canal, industry experts advise beneficial cargo owners (BCOs) to proactively address potential challenges associated with port congestion.

The anticipated surge in vessel traffic may lead to increased detention and demurrage (D&D) charges if containers are not promptly collected or returned. A prominent industry consultant emphasized that geopolitical disruptions have previously resulted in port congestion, complicating timely container handling. They cautioned, "In terms of D&D and the Red Sea, we haven’t seen anything yet."

Potential Impact on Oceania: While the immediate focus is on the Suez Canal, any disruptions in major global shipping routes can have cascading effects on Oceania's supply chains. Delays and increased costs in international shipping lanes may lead to scheduling challenges and elevated expenses for businesses in the region. Proactive planning and collaboration with logistics partners are essential to mitigate these potential impacts.

Diversifying Supply Chains: A Strategic Imperative for Oceania Businesses

Supply chain experts urge companies to broaden their supplier base in response to rising global disruptions, geopolitical tensions, and logistics bottlenecks. At the recent TPM25 conference hosted by S&P Global, industry leaders emphasized that businesses cannot afford to concentrate sourcing in a single region or rely too heavily on specific suppliers—no matter how small the component. Ford’s recent operational scare due to a 10-cent part shortage is a stark example of how over-reliance on one supplier can risk the entire production line. Resilience now requires proactive diversification, not just contingency planning.

This message is especially relevant for businesses in Oceania—particularly those involved in automotive, electronics, and retail. Many regional importers rely heavily on Asia, particularly China, for manufacturing and raw materials. While this proximity offers cost and transit time advantages, it also increases vulnerability to regional disruptions, such as weather events, factory closures, or political unrest. Oceania-based companies that diversify their supplier base across multiple countries or regions will be better equipped to maintain continuity and meet customer demand even in times of crisis.

Diversification also plays a role in navigating emerging regulatory shifts. Trade tensions, evolving tariff structures, and environmental regulations can quickly alter the cost and feasibility of sourcing from a particular region. Businesses can reduce dependency on a single economic or political system by developing supplier relationships across different markets—such as Southeast Asia, India, or even nearshoring within Oceania. This flexibility is becoming a competitive differentiator, allowing companies to pivot swiftly without sacrificing service levels or margin.

At KLN, we help our customers build stronger, smarter supply chains that can withstand global shocks. Whether you're looking to assess supplier risk, evaluate alternative sourcing hubs, or optimize multi-origin logistics strategies, our team is ready to support. Now is the time to review your supplier footprint—before the next disruption does it for you. Let’s talk about how we can help you prepare, adapt, and thrive in today’s dynamic trade environment.

Gemini Cooperation's Schedule Reliability Shows Early Strength

Recent analyses from Sea-Intelligence Consulting indicate that the Gemini Cooperation, the alliance between Maersk and Hapag-Lloyd, has achieved schedule reliability exceeding its 90% target in its initial operations. This performance suggests a promising start for the alliance, aiming to enhance service consistency across key trade routes.

In contrast, MSC's independent east-west network and the newly established Premier Alliance also demonstrated high reliability levels at origin ports during their inaugural month. Conversely, phasing out the 2M and THE Alliance services has reduced reliability, highlighting the complexities involved in transitioning between alliances. ​

Potential Impact on Oceania: While the current data focuses on major east-west trade routes, the Gemini Cooperation's emphasis on schedule reliability may influence service standards in other regions, including Oceania. Enhanced reliability in global shipping networks could improve transit times and service predictability for Oceania-based shippers, potentially benefiting industries reliant on timely imports and exports.

Developments in Oceania

Australia's Economic Outlook

As of March 2025, Australia's economic landscape is marked by both opportunities and challenges. The government has unveiled a budget featuring A$17.1 billion in tax cuts to provide relief to average wage earners. These measures bolster economic resilience amid global trade uncertainties and geopolitical risks. Despite these initiatives, the budget projects a deficit of A$27.6 billion, reflecting increased spending in public healthcare, education, and green metals production.

The resources and energy sector, a cornerstone of Australia's economy, is experiencing a projected 6% decline in export earnings for the financial year ending in June. This downturn is attributed to lower U.S. dollar prices for key exports, including iron ore, gas, and coal. The government anticipates a gradual reduction in earnings over the next five years, stabilizing at A$343 billion.

In the political arena, the forthcoming 2025 elections bring several critical issues to the forefront. A significant concern is the projected cash deficit of $80 billion in 2025–26, with continued deficits in subsequent years. Additional annual defense spending of $25 billion further complicates the fiscal outlook. These financial challenges underscore the need for strategic policy decisions to ensure economic stability.

New Zealand's Economic Developments

New Zealand's economy is showing signs of recovery, with 0.7% GDP growth in the fourth quarter of 2024 surpassing expectations. This positive trajectory is driven by growth across 11 out of 16 industries, indicating a broad-based rebound. ​

In a move to stimulate economic activity, the Reserve Bank of New Zealand (RBNZ) is reviewing bank capital requirements. The review aims to assess current regulations' stringency and impact on banking competition. Acting Governor Christian Hawkesby emphasized that the banking system is not capital-constrained and can raise capital when needed. ​

To attract foreign investment, New Zealand is revising its "golden visa" program, making it more accessible for wealthy individuals. Effective April 1, the updated program reduces investment thresholds and removes the English language requirement, aiming to invigorate the economy amid a significant downturn. ​

Trade and Industry Highlights

Both Australia and New Zealand continue to pursue trade diversification strategies to enhance economic resilience. In March 2025, New Zealand and India announced the launch of negotiations for a comprehensive free trade agreement. These discussions address tariff and non-tariff barriers, opening new avenues for exporters and strengthening bilateral economic ties. ​

In the energy sector, New Zealand is advancing its commitment to renewable resources with the development of the Ruakākā Energy Park. This project combines a battery energy storage system and a photovoltaic power station, representing a significant investment in sustainable infrastructure. Construction is set to begin in August 2025, with completion expected in 2027. ​

These initiatives underscore the region's dedication to building robust, diversified, and sustainable economic frameworks, positioning both nations to navigate the complexities of the global economic landscape effectively.

Ocean Freight Updates

• Carriers booking utilization sits at 85%-95% to both AU and NZ, with irregular blank sailings and cargo rolling.
• COSCO shipments to AU Transshipment via Singapore keep waiting times around 2-3 weeks in SIN, under their FIFO operational policy.
• Blank Sailings expected with 12-20% capacity cut for March 2025.
• New Zealand:
  • KIX Service – Tianjin Bridge 202 Omit Lyttelton and change of rotation
  • ANZEX Service – APL Scotland 468S Change of Rotation

• Australia
  • A3N Service – CMA CGM Baikal 234N Change of Rotation

Schedule reliability on the Asia-Oceania trade lane

Oceania - Asia (Exports)

The Oceania to Asia route has faced challenges due to recent weather events. Tropical Cyclone Alfred's impact on Brisbane led to significant disruptions in port operations. The JKN service's scheduled call at the Port of Brisbane was canceled, and other vessels experienced delays, preventing timely returns to China. Consequently, sailing intervals on the China-Australia route are expected to extend by 7-10 days in the coming weeks, potentially causing cascading delays.

Ocean Freight Spot Rates Show Mixed Trends Amid Carrier Pricing Strategies

Recent analyses of ocean freight spot rates reveal a complex landscape. Drewry's World Container Index (WCI), which tracks rates paid in the past week, continues to show declines across nearly all routes. Conversely, the Shanghai Containerized Freight Index (SCFI), reflecting quotes from the past week, indicates slight upward movements. This divergence suggests that while actual rates have been decreasing, carriers are attempting to implement price increases to stabilize the market.

Carriers have announced general rate increases (GRIs) and freight all kinds (FAK) rate hikes, aiming to halt the downward trend in spot rates. For instance, Asia-Europe FAK price hikes have managed to arrest a 13-week rate decline, indicating that these strategies can have a temporary stabilizing effect. However, the sustainability of these increases remains uncertain, as market dynamics and demand fluctuations continue to influence rate movements.

For businesses relying on ocean freight, these mixed trends underscore the importance of staying informed and adaptable. Collaborating closely with logistics partners to monitor rate changes and understanding the factors driving these fluctuations can help in making strategic shipping decisions. As carriers adjust pricing strategies in response to market conditions, proactive planning becomes essential to navigate the evolving landscape of ocean freight rates.

MSC Implements Blank Sailings Amid Declining Transpacific Freight Rates

In response to nine consecutive weeks of falling spot freight rates on transpacific routes, MSC has announced the cancellation of six sailings in the upcoming weeks. This capacity reduction initiative aims to address the imbalance caused by decreased cargo volumes and declining rates.

The adjustments will commence with the blanking of the Chinook service, which connects the Far East to ports including Prince Rupert, Vancouver, and Seattle/Tacoma. This service, typically operated with eight vessels averaging 13,000 TEU and including slots chartered by Zim, will see its first cancellation next week. Further cancellations are planned for week 17, affecting two additional sailings from Asia to the U.S. West Coast.

These strategic cancellations reflect MSC's efforts to stabilize the transpacific market by aligning capacity with current demand levels. Shippers should anticipate potential schedule changes and consider alternative arrangements to mitigate any disruptions caused by these blank sailings.

U.S. Federal Maritime Commission Investigates Global Shipping Chokepoints

The U.S. Federal Maritime Commission (FMC) has initiated an investigation into seven critical maritime chokepoints: the Northern Sea Passage, English Channel, Malacca Strait, Singapore Strait, Strait of Gibraltar, and the Panama and Suez Canals. This initiative aims to identify regulations, policies, or practices that may create unfavorable shipping conditions.

Potential Impact on Oceania: While the FMC's investigation focuses on global maritime routes, any regulatory changes or interventions resulting from this inquiry could influence international shipping dynamics. For Oceania, alterations in the management or operation of these chokepoints may affect shipping schedules, transit times, and costs, given the region's reliance on these routes for trade. Businesses should monitor developments closely to anticipate and adapt to potential changes in the global shipping landscape.

Ocean Freight Snapshot (April 2025)

Check our snapshot for a quick glance on space, rate, equipment and transit times for Oceania

Air Freight Updates

German Airport Strikes Disrupt Air Cargo Operations

A 24-hour strike by Germany's Verdi trade union on March 10, 2025, led to significant disruptions at major German airports, including Frankfurt and Munich. The industrial action impacted both passenger flights and cargo operations, causing delays and cancellations across the board. ​

Lufthansa Cargo reported substantial interruptions due to the strike, with limited cargo transported during the walkout. The airline advised customers to anticipate delays and monitor updates on their website.

Frankfurt Airport, Europe's leading air cargo hub, warned of "massive disruption" to flight operations during the strike. Airport authority Fraport stated that all services essential for maintaining full flight operations were suspended during the strike period.

E-commerce Shift to Sea Freight May Influence Airfreight Rates

Recent observations indicate that e-commerce platforms are increasingly considering sea freight as an alternative to airfreight, potentially impacting air cargo demand and rates. A Shanghai-based airfreight forwarder noted that while current volumes from China to the US remain stable, changes in US tariff policies could rapidly alter this balance.

Freightos' 'Global Freight Outlook' webinar highlighted that some Chinese exporters and US e-commerce importers are already shifting inventories via ocean freight in anticipation of stricter regulations, such as potential changes to de minimis exemptions. ​

Potential Impact on Oceania: For businesses in Oceania, this global shift from air to sea freight in e-commerce logistics may lead to adjustments in supply chain strategies. While sea freight offers cost advantages, it also involves longer transit times, which could affect inventory planning and delivery schedules. Companies should assess their logistics approaches to balance cost efficiency with timely delivery, ensuring they remain competitive in the evolving market landscape.

Airfreight Faces Overcapacity Amidst Declining E-commerce Demand

The airfreight industry is currently grappling with overcapacity issues, primarily due to a significant downturn in e-commerce demand. This decline has led to the cancellation of airline block space agreements and charters, especially on transpacific routes to the United States. Logistics companies are adjusting their strategies in response to this shift; for example, Ceva Logistics has introduced a new thrice-weekly charter service connecting Wuxi, China, to Chicago, utilizing an Atlas Air-operated Boeing 747 freighter.

Despite the overall reduction in e-commerce shipments, airfreight rates have remained relatively stable. The Baltic Air Freight Index reported a 1.7% week-on-week increase and a 12.8% rise compared to the same period last year. Specifically, rates from Shanghai to Europe and the US have seen modest upticks, indicating that while demand has softened, pricing remains resilient.

Industry analysts suggest that this period of overcapacity may persist through the second quarter of 2025. Businesses reliant on airfreight should monitor market developments closely and consider diversifying their logistics strategies to mitigate potential disruptions. Collaborating with logistics partners to explore alternative shipping methods and routes can help navigate the challenges posed by the current market dynamics.

ANA Holdings Delays Nippon Cargo Airlines Acquisition to May

ANA Holdings has announced a further postponement of its acquisition of Nippon Cargo Airlines (NCA), with the share exchange now scheduled for May 1, 2025. The acquisition, initially announced in 2023, has experienced multiple delays. The latest deferment is attributed to the time required to complete the review of the business combination by relevant authorities in China and other jurisdictions.

This development underscores the complexities involved in international mergers and acquisitions within the aviation sector, particularly concerning regulatory approvals across multiple countries. Stakeholders and industry observers will be monitoring the situation closely as the new completion date approaches.

Semiconductor Demand Offers New Opportunities for Air Freight

The air freight industry is experiencing a notable shift as the semiconductor sector emerges as a significant contributor to cargo volumes. In 2024, semiconductor sales surged by 19.1%, with January 2025 figures showing an 18% year-on-year increase. Projections for the remainder of 2025 anticipate a 15% growth, driven by the escalating demand for artificial intelligence technologies.

This uptrend is further bolstered by strategic initiatives like the U.S. CHIPS Act, which incentivizes semiconductor production in new locations, potentially altering traditional supply chain routes. Additionally, major industry players such as Samsung and Taiwan Semiconductor Manufacturing Company (TSMC) are expanding their manufacturing capacities, indicating sustained growth in semiconductor output.

Potential Impact on Oceania: For the Oceania region, this global increase in semiconductor production and distribution may lead to enhanced air freight opportunities. As manufacturing hubs diversify and expand, there could be increased demand for efficient air cargo solutions to transport semiconductors and related components to and from Oceania markets. This presents an opportunity for logistics providers in the region to adapt and cater to the specialized requirements of the semiconductor supply chain.

Air Freight Snapshot (April 2025)

Customs, Inland Transport, Terminal and Regulation Updates

Melbourne Airport Rail Link Gains Momentum — Freight Connectivity Set to Improve

The Melbourne Airport Rail Link (MARL) has taken a major step forward with a Memorandum of Understanding (MoU) signed between the Australian Government, Victorian Government, and Australia Pacific Airports (Melbourne). This agreement signals a renewed, collaborative push to get the long-awaited project underway, with a joint steering committee now established to oversee its delivery.

The first stage includes the rebuilding of Sunshine Station and reconfiguring six kilometres of rail track between West Footscray and Albion. These upgrades are not just about improving passenger access to the airport—they’re also critical to unlocking capacity for freight and regional rail services. The corridor will support metro, freight, and 70% of the V/Line network, laying the groundwork for better intermodal integration and future infrastructure growth in Melbourne’s west.

For the freight and logistics industry in Oceania, particularly in Victoria, this is a significant infrastructure development. Enhancements to the shared corridor will improve rail reliability, reduce bottlenecks, and strengthen Melbourne’s position as a key national freight gateway. As the project moves closer to construction, businesses should start considering how improved airport and rail access may streamline cargo movement and benefit long-term supply chain planning.

New Compliance Pressures: The Ripple Effect of US Tariffs in Oceania

The recent imposition of U.S. tariffs on steel and aluminum imports has significant implications for Australian and New Zealand importers, particularly concerning customs operations. These tariffs are poised to reshape trade dynamics, necessitating strategic adjustments to ensure compliance and maintain economic stability.​

For Australia, the introduction of a 25% tariff on steel and aluminum exports to the U.S. disrupts established trade patterns. Customs authorities must now navigate increased documentation and compliance measures to meet U.S. import requirements. This escalation not only affects direct exports but also raises concerns about Australia becoming a destination for surplus steel and aluminum diverted from other markets, potentially leading to increased scrutiny and anti-dumping measures at the border. ​

In New Zealand, while the direct impact may be less pronounced due to a smaller trade volume with the U.S., there are still critical considerations for customs operations. The U.S. has initiated investigations into trading partners' tariffs and trade practices, which could result in higher duties on New Zealand exports. Customs officials must stay vigilant, adapting to potential changes that could affect the cost structure and competitiveness of New Zealand goods entering the U.S. market.

Both countries face indirect effects from these U.S. trade policies. As global supply chains adjust, customs authorities may encounter shifts in import patterns, requiring enhanced risk assessment and resource allocation to manage new trade flows effectively. Additionally, the potential for retaliatory measures by other nations could introduce further complexities in customs procedures, emphasizing the need for agility and preparedness in customs operations.

To navigate these challenges, importers and customs brokers in Australia and New Zealand should proactively engage with government agencies to stay informed about policy changes and compliance requirements. Investing in robust compliance programs and leveraging technology to streamline customs processes will be essential in mitigating the impact of these tariffs and maintaining the smooth flow of goods across borders.

Auckland Rail Upgrades and Terminal Closures to Impact Freight Operations—Plan Ahead

KiwiRail’s ongoing Rail Network Rebuild (RNR) and the upcoming N4 terminal system upgrade at the Port of Auckland are set to create significant disruption across Auckland’s logistics network over the next six weeks. While these infrastructure projects promise long-term efficiency gains for the freight and transport sector, businesses involved in cargo movement should prepare for a tight operating window in April due to multiple overlapping events.

The Container Terminal will be closed from 11–13 April for the N4 terminal system upgrade (Customer Advisory here) . This will be immediately followed by the KiwiRail Block of Line from 12–22 April, reducing rail freight capacity at a critical time. These closures coincide with Easter and ANZAC Day short weeks, further compressing the available working days for cargo handling. Despite fluctuating vessel schedules, the Port has maintained strong performance, with 100% of early and on-window vessels departing on time. However, volume variability and offshore delays continue to impact planning.

To reduce the risk of delays or storage penalties, importers and transport operators are urged to proactively manage collection of inbound cargo and closely monitor port and rail schedules. Port of Auckland has committed to optimising road throughput during this busy period, but customer coordination will be key. Visit the POAL website regularly for live updates, and refer to the Customer Advisory for planning guidance.

In the bigger picture, these infrastructure investments—backed by over $200 million in government funding—are aimed at future-proofing Auckland’s transport network ahead of the 2026 City Rail Link (CRL) launch. Once complete, the upgraded rail and terminal systems will support faster, more frequent services and improve freight fluidity through the region. For now, planning ahead is essential to navigate the disruptions and keep cargo moving. KLN will continue to support customers through this transition with real-time updates and flexible solutions.

Foot-and-Mouth Disease Outbreaks in Hungary and Slovakia Impacting Imports

Recent developments have intensified concerns regarding Foot-and-Mouth Disease (FMD) in Hungary and Slovakia, necessitating immediate attention from importers and brokers dealing with animal-derived products.​

Current Situation

As of late March 2025, both Hungary and Slovakia have reported multiple FMD outbreaks:​

• Hungary: The initial outbreak was identified on March 7 in Kisbajcs, followed by a second case on March 26 in Levél, Győr-Moson-Sopron county.
• Slovakia: The first cases emerged on March 21 in the Dunajská Streda district, with additional outbreaks confirmed on March 25 in Lúč na Ostrove and on March 30 in Plavecký Štvrtok. ​

These incidents mark the first FMD occurrences in these regions in over 50 years. ​

Australian Import Restrictions

In response, the Australian Department of Agriculture, Fisheries and Forestry (DAFF) has implemented stringent biosecurity measures:​

• Suspension of Imports: Effective immediately, imports of the following commodities from Hungary and Slovakia are suspended:​
  • Dairy products sourced, manufactured, or exported from these countries.​
  • Personal dairy and beef food items entering as passenger effects or via mail.​
  • Reproductive materials from cattle, sheep, goats, and related species.​
  • Veterinary therapeutics containing materials from susceptible species.​
  • Pet food and stock feed derived from affected animal sources.​
  • Laboratory goods containing fluids or tissues from susceptible animals.​
    
• Goods in Transit: Products shipped before February 3, 2025, may be released from biosecurity control if adequate evidence is provided. Items manufactured after this date may be denied entry and subject to re-export or destruction. ​LinkedIn
• Peat Imports: Peat from Hungary and Slovakia remains importable, provided it is not sourced from areas with FMD occurrences in the past 12 months or within a three-kilometer radius of an affected property. ​

Recommendations for Importers and Brokers

• Stay Informed: Regularly consult official communications, including BICON alerts and Industry Advice Notices, for the latest updates on import conditions.​
• Documentation: Ensure all shipments have comprehensive documentation verifying manufacturing dates and compliance with current biosecurity measures.​
• Direct Inquiries: For clarification or guidance, contact the Department of Agriculture, Fisheries and Forestry at imports@aff.gov.au.​

Vigilance and adherence to these protocols are crucial to safeguard Australia's livestock industries from the risks associated with FMD.

Upcoming Adjustments to New Zealand Customs and MPI Fees

The New Zealand government has announced forthcoming changes to the fee structures of the New Zealand Customs Service (Customs) and the Ministry for Primary Industries (MPI), aiming for full cost recovery in border management operations. These adjustments will be implemented in two phases:

• 1 July 2025: Initial modifications to Customs' fee rates will take effect. For instance, the Import Entry Transaction Fee will increase from NZD 34.85 to NZD 46.47, while the Inward Cargo Transaction Fee for sea freight will decrease from NZD 467.03 to NZD 207.53. Notably, MPI's Biosecurity System Entry Levy (BSEL) will remain unchanged during this period.
• 1 April 2026: A comprehensive restructuring of both Customs' and MPI's fees and levies will be introduced. Key changes include:​
• Establishing separate rates for air and sea consignments.​
• Implementing charges for low-value goods (consignments valued at NZD 1,000 or less) per consignment, replacing the previous per cargo report fee.​
• Introducing fees for low-value goods transported via international mail.​
• Applying charges to commercial vessels, international transshipments, and empty shipping containers.​
• Eliminating taxpayer subsidies for low-value goods and commercial vessels to achieve full cost recovery. ​

These adjustments follow extensive industry consultation and are designed to ensure that the costs of border management are equitably distributed among those utilizing these services. The phased implementation provides importers, exporters, and associated stakeholders ample time to prepare for the upcoming changes.​

For detailed information on the revised fee structures and guidance on how these changes may affect your operations, please refer to the official announcement by New Zealand Customs here

Staying informed and proactive in understanding these adjustments will be essential.

Port of Auckland’s April Terminal Closure

The Port of Auckland has announced a planned closure of Fergusson Container Terminal from 7:00 AM on Friday, 11 April until 3:00 PM on Sunday, 13 April 2025, to complete a critical upgrade of its Terminal Operating System (TOS) from N4 version 2.6 to 4.0. This upgrade is intended to improve system stability, support future automation, and strengthen business continuity capabilities. While the long-term benefits are positive, this 48-hour closure will have immediate impacts on cargo handling and road transport activity across the region.

During the closure, no truck, vessel, or rail operations will take place at the terminal. Although the terminal will reopen Sunday afternoon, operations will likely face a backlog as volumes are cleared and the system is bedded in. POAL has advised that it will focus on optimising road throughput to manage delays and is encouraging importers and transport operators to plan ahead and collect cargo early where possible. With multiple short working weeks in April due to Easter and ANZAC Day, efficient coordination during open windows will be crucial.

We recommend customers consult the latest Customer Advisory for detailed guidance and keep an eye on POAL's website for schedule changes.

KLN will continue to support customers with updated visibility and alternative routing where necessary. Proactive planning and close communication will be key to maintaining supply chain continuity during this busy and compressed period.

Why Partner with KLN

Selecting KLN Oceania as your trusted partner isn't just a choice—it's a strategic move towards ensuring your success. Our commitment to excellence is not just a promise; it's a guarantee. With a global network that's both vast and meticulously managed, we stand head and shoulders above the competition. This means you benefit directly from unparalleled service quality, ensuring your supply chain needs are met with precision, efficiency, and minimal hassle.

Are you ready to elevate your logistics game and experience seamless support tailored to your unique needs? Let's discuss how we can bring unparalleled value to your business.