KONNECT - OCTOBER 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

Global logistics remains volatile as fresh U.S. tariffs take hold, and trade tensions escalate. The USTR's finalized port call fee on Chinese-built and operated vessels is now set for phased rollout starting 14 October. China, though retaliating symbolically, is unlikely to disrupt shipping flows. Simultaneously, the elimination of the U.S. “de minimis” rule and expansion of Section 232 tariffs on metals, vehicles, and copper are reshaping cost structures for Oceania exporters. Carriers are responding with blank sailings, aggressive GRI tactics, and shifting capacity to Southeast Asia corridors, aiming to cushion weak demand and rate pressure.

On the ground, Australia and New Zealand face diverging economic paths: the RBA holds rates steady amid resurging inflation, while the RBNZ cuts more aggressively to counter contraction. Regional logistics firms are moving cautiously, prioritizing smart growth and resilience over expansion. A new UAE-Australia trade agreement promises cost relief, while stricter biosecurity (BMSB), weather events like Typhoon Ragasa, and dual-use export controls in China continue to test freight planning.

Airfreight remains disrupted, with rates from China spiking due to Golden Week, rail bottlenecks, and typhoon impacts. Despite early surges, peak season momentum is weak and structural overcapacity persists. Meanwhile, new routes like Guangzhou–Darwin bring opportunity for direct uplift into Australia. On the ocean side, transpacific spot rates continue to slide while COSCO’s Singapore transshipments face multi-week dwell times. New Southeast Asia–China services show shifting network strategies and alternative growth lanes.

Locally, compliance requirements are ramping up across multiple fronts—from customs data accuracy and HS code validation to fumigation certifications and carrier service alignment. Whether dealing with Auckland terminal congestion or U.S. shutdown delays, the key theme is clear: shippers must plan ahead, stay nimble, and remain laser-focused on risk mitigation across sourcing, pricing, and routing.

Business Tip

Now is the time to revisit your “landed cost” assumptions.  Many of the trade, tariff, and capacity shifts currently underway—especially in the U.S., China, and intra-Asia—are changing the real cost-to-serve your destination markets. Whether you’re an importer or exporter, outdated cost models can leave you underpricing or overpromising. Use this month to audit duty exposure, update your checkout logic (for DDP/DDU), and re-confirm your transit assumptions with forwarders. Customers may forgive a surcharge—they won’t forgive missed delivery promises.

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

Spotlight

Our digital presence just got a major upgrade.

The new KLN Oceania website was designed to make your experience smoother and more intuitive, with faster access to everything that matters in logistics and freight forwarding.

From services to insights, everything is now just one click away. Explore the future of logistics with KLN Oceania.

Market Trend

Since the pandemic, logistics has been anything but stable: the Red Sea/Suez risk persists, U.S. tariffs intensify, and now the boardrooms of global carriers are focused on USTR-imposed fees on Chinese-built and operated vessels, set to begin 14 October 2025. Below is a refined narrative with the latest facts and caution points.

What Is Actually Proposed & Confirmed

• On 17 April 2025, the U.S. Trade Representative (USTR) finalized a “revised plan” to impose phased fees on vessels that are Chinese‑owned, operated, or built, to take effect 14 October 2025.
• The fees are structured such that the fee will be $0 for the first 180 days of implementation, then start at $50 per net tonnage (NT), increasing gradually over the next three years.
• For Chinese-built vessels, the fee will be the higher of (i) per net tonnage fee, or (ii) per container.
• Some exemptions are built in:
  • Vessels below a size threshold or capacity,
  • Ships arriving empty or in ballast,
  • Certain U.S.-flagged or U.S.-owned vessels,
  • Vessels operating short-sea trades or intra‑Gulf routes.
  • Also included: a “remission incentive” for vessel operators who order a U.S.-built vessel equal or larger — potentially suspending or mitigating the fee for up to 3 years.

Important nuance: The final USTR plan is less aggressive than earlier proposals. Many of the most extreme fees in original drafts were softened after industry feedback.

Chinese Shipbuilding & Market Share — What the Data Shows

• China continues to dominate new vessel orders. In the first eight months of 2025, Chinese shipbuilders secured 53% of global ship orders by tonnage.
• However, that share is down from a peak of ~72% in 2024, as global orders slip and some shipowners react to policy pressures.
• China’s backlog remains strong. For H1 2025, completion volumes were ~24.13 million DWT, and order backlogs grew ~36.7% year-on-year.

This suggests dominant capacity, but a degree of fragility if incentives or penalties shift further.

Container Shipping Recession: Are We Already in One?

Speculation is mounting across the industry that container shipping may already be in a recession, despite mixed signals across trade volumes and freight rates. Analysts are weighing the current slump in spot rates, weak cargo demand, overcapacity, and macroeconomic headwinds—like inflation and ongoing trade tensions—as signs that the market may be in a downturn rather than just a correction.

Key routes like Asia-Europe and transpacific have seen double-digit drops in rates over the past few months. With shipping lines continuing to chase volume over margins, blank sailings are increasing and contract rate negotiations remain under pressure. While some players see a bounce-back in 2026 as new alliances stabilize and geopolitical shifts open alternative corridors, others warn the slowdown could extend further if demand doesn’t pick up.

For importers and supply chain professionals in Oceania, this environment may translate into short-term cost opportunities—but with longer lead times and unpredictable space allocations.

US Tariffs Update: De Minimis Eliminated, Section 232 Tariffs Expanded — What It Means for Oceania

The United States has tightened multiple trade measures through mid–late 2025 that materially affect Oceania shippers—especially those exporting metals, vehicles/parts, and B2C parcels. The most consequential change is the end of the US$800 “de minimis” exemption, which now brings duties, taxes and fees onto nearly all low-value imports.

Recap of Impact on Oceania Trade & Logistics

• De minimis eliminated for low-value shipments

Effective 29 August 2025, the US has suspended duty-free de minimis treatment for goods at or below US$800 from all countries. All such shipments—postal and commercial—are now subject to applicable duties, taxes and fees, with stricter data requirements (e.g., COO and value) on manifests and declarations. Early impacts include sharp slowdowns and operational friction in cross-border eCommerce flows.

What this means: Oceania e-tailers should expect additional landed costs, longer processing, and a need to adjust pricing/checkout logic, HS classification, and duty pre-payment workflows.

• Steel & aluminium tariffs raised to 50% (Section 232)

Since 3 June 2025, US Section 232 tariffs on steel and aluminium (and some derivatives) have doubled to 50% on a global basis (limited carve-outs exist, e.g., a distinct treatment for the UK).

What this means: Australian and New Zealand exporters of base metals, machinery, fittings and fabricated components face materially higher landed costs. Small, irregular orders are increasingly uneconomic without price adjustments or consolidation.

• Copper products face a 50% tariff (Section 232)

From 1 August 2025, many semi-finished copper and intensive copper-derivative products are subject to a 50% tariff.

What this means: Mining supply chains and industrial exporters shipping copper-bearing inputs/components into the US will see significant duty exposure. Expect tighter scrutiny on classification to determine whether goods fall within covered HTS ranges.

• Automobiles & parts: 25% Section 232 duties

US tariffs of 25% now apply to imported passenger vehicles/light trucks and a defined set of key auto parts (with staged effective dates in April/May 2025). Certain USMCA-compliant vehicles may pay the tariff only on non-US content, but the duty burden is still substantial.

What this means: Oceania OEM/aftermarket suppliers into the US should review bills of materials, origin rules, and consider regionalization strategies or alternate routings.

• Additional new measure announced: heavy-truck imports

On 7 October 2025, the US announced a separate 25% tariff on imported medium- and heavy-duty trucks, effective 1 November 2025.

What this means: If you export specialty trucks/chassis or upfit units to the US, assume new duty costs from November.

Operational Effects to Expect (Q4 2025)

• B2C parcel friction and modal shifts

Expect sustained disruption to postal/express flows, more formal entries, and pressure to pivot toward consolidated LCL or DDP solutions with accurate landed-cost calculation at checkout.

• Space, booking and cost volatility

Front-loading around policy dates, plus carrier capacity rebalancing toward higher-volume lanes, can spill over into Oceania–US services. Watch for equipment tightness, schedule variability, and knock-on detention/demurrage exposures.

• Compliance intensity

US authorities and integrators are enforcing tighter data standards (COO, accurate value, precise HS codes). Misclassification risks penalties; transshipment won’t avoid duties if origin/substantial transformation doesn’t change.

Recommendations for Exporters & Freight Planners

• Re-price and re-configure eCommerce

Bake duties/taxes into checkout for all US orders (no de minimis). Implement HS code validation, duty/tax calculators, and clear DDP/DDU terms to minimize delivery exceptions.

• Tighten classification & origin controls

Conduct an HS/valuation audit across SKUs—particularly for copper, steel, aluminium, vehicles/parts. Validate Rules of Origin for any FTA claims and confirm if Section 232 overrides apply.

• Consolidate to reduce per-unit costs

For small orders, shift from postal/express to scheduled LCL with pre-clearance and robust documentation. Forecast 2–4 weeks out to secure capacity and mitigate peak surcharges.

• Scenario-plan for Section 232 exposure

Model duty impact by product family; evaluate US or North American assembly/finishing, supplier shifts, or alternative materials where feasible.

• Communicate proactively

Update US customers on landed-cost changes, possible lead-time extensions, and any temporary surcharges. Align service-level agreements (SLAs) with the new customs reality.

Poland–Belarus Border Reopens, but Supply Chain Risks Persist

After months of heightened tension, the Kukuryki-Kozlovichi border crossing between Poland and Belarus has officially reopened, restoring a critical land route for freight between the European Union and Eurasia. This reopening is a welcome relief for many supply chains that had faced costly diversions and delays through alternative routes.

However, the move comes with caution: underlying geopolitical tensions remain unresolved, and logistics companies continue to weigh the risks of operating in the region. Additional permits, customs inspections, and security concerns remain elevated, especially for eastbound shipments transiting Belarus toward Russia or Central Asia.

Despite the reopening, many shippers are maintaining alternate routings via Romania, the Baltics, or even Sea–Rail options through China, citing unpredictability and risk exposure.

For importers relying on overland Europe–Asia routes, the message is clear: diversification of routing and proactive risk planning are still essential, even as traditional lanes reopen.

Shift from “Just‑in‑Time” to “Just‑in‑Case” Strategy Amid Airfreight Volatility

In the current market situation, a lot of companies are starting to reconsider tight inventory models in light of persistent airfreight cost risks and capacity constraints. While airfreight rates have seen short-lived rebounds, Flexport’s data shows that relying on just‑in‑time shipments leaves importers vulnerable to sudden surcharges, spot shortages, and rate spikes. The recommendation is to accept a modest increase in holding costs—building buffer inventory—to reduce dependence on costly emergency air freight.

For importers in Oceania, this means:

• Gradually increasing safety stock for critical SKUs
• Partnering early with forwarders to secure air or alternative space
• Aligning procurement and logistics teams to smooth demand forecasts
• Reassessing carry cost vs freight premium trade-offs

In the current state of the market, supply chains must balance cost-efficiency with risk mitigation in 2025’s unstable trade environment.

US Government Shutdown Disrupts Supply Chains

The U.S. federal government entered a shutdown on 1 October 2025, marking the first such event in nearly seven years. With no appropriations passed for the 2026 fiscal year, several federal agencies—including those critical to international trade—have ceased or reduced operations.

Implications for Supply Chains:

• Delays in Customs Processing: Expect slower response times from U.S. Customs and Border Protection and associated federal agencies due to reduced staffing levels.
• Licensing and Permits: Processing of permits and trade licenses may be delayed, particularly those requiring agency review or inspection.
• Limited Communications: Exporters and importers may face limited access to guidance and communication from U.S. regulatory bodies.

This shutdown follows the longest one in U.S. history, which occurred between December 2018 and January 2019. While contingency plans are in place, logistics and customs clearance delays are likely—particularly for businesses trading with or through the U.S.

We recommend importers and exporters review their U.S.-linked shipments, communicate proactively with local agents, and prepare for administrative delays where federal approval or review is required.

US Firms Turn to FTZs to Offset Tariff Risks

As new tariffs take hold under the Trump administration’s revived trade policy, US importers are turning to bonded warehousing and Foreign Trade Zones (FTZs) to soften the blow. The surge in front-loading earlier this year has now been followed by growing interest in strategies that allow importers to delay, reduce, or even avoid tariffs.

FTZs are gaining traction because they let companies store goods without paying duties until the goods enter the US market—or not at all, if re-exported. This flexibility is proving especially valuable in today’s volatile tariff environment, where new levies are being imposed unpredictably. These zones provide a hedge for importers looking to maintain cost competitiveness despite shifting trade rules.

With uncertainty around reciprocal tariffs—like the recent 15% duty slapped on New Zealand exports—more firms are expected to explore FTZs as a strategic buffer.

Developments in Oceania

Australia’s Economic Outlook

In late September, the Reserve Bank of Australia (RBA) opted to hold the cash rate at 3.60%, citing ongoing inflation risks despite prior cuts earlier in 2025. The decision reflects a cautious “wait‑and‑see” stance: the RBA is closely watching the upcoming quarterly inflation print and labour market data before acting.

Inflation has seen renewed upside pressure. In August, headline CPI jumped ~3.0 % year-on-year—one of the fastest rates in a year—largely driven by a sharp increase in electricity costs and housing-related expenses. Underlying inflation (trimmed mean) sits around 2.6 %, suggesting that while price pressures aren't across the board yet, they’re creeping into core categories. Meanwhile, inflation expectations among consumers rose to 4.7% in September, up from 3.9% in August—raising concern that inflation could become more entrenched.

On the demand side, NAB’s “The Forward View” report remains relatively optimistic, noting that Q2 household consumption strengthened, supporting their outlook for gentle acceleration in GDP. They maintain forecasts for rate cuts in November and February, and see a “terminal” rate near 3.1% by early 2026. That said, the upside inflation surprise has cooled enthusiasm among some economists, who now place lower probability on a November cut. Consumer sentiment has fallen for a second straight month: the Westpac–Melbourne Institute index slipped ~3.5% in October, reflecting greater pessimism about finances and the short-term outlook.

Taken together, the picture suggests Australia is at a delicate inflection point: inflation risks are re-emerging, and room for further cuts may be limited unless data turns decisively soft.

New Zealand’s Economic Developments

In early October, the Reserve Bank of New Zealand (RBNZ) surprised markets with a 50 basis point cut, lowering the Official Cash Rate to 2.5%. This more aggressive move underscores deep concerns about ongoing economic weakness. The RBNZ cited subdued inflation and slack demand as factors justifying the cut, and flagged the possibility of additional easing if conditions worsen.

The backdrop for this decision is challenging: Q2 2025 GDP data suggests that New Zealand’s economy contracted more sharply than expected, renewing pressure on policymakers to act. Meanwhile, inflation remains within target but is being driven by higher housing rates, rent, and local taxes—elements the central bank sees as likely to ease over time under a weak demand environment.

Further structural reforms are in motion: the RBNZ has announced plans to establish a Financial Policy Committee (FPC), intended to strengthen its macroprudential oversight. The FPC will include internal and external members and should be operational by early 2026. This step follows parliamentary reviews of banking competition and credit constraints.

Trade & Industry Highlights

Trade pressures continue to be a source of uncertainty. For Australia, the inflation surge adds a domestic layer to existing external risk from tariffs and slowing global demand. The RBA’s hesitation to cut more aggressively underscores how trade shocks and input cost volatility now complicate monetary policy.

In New Zealand, the deeper-than-expected contraction and steeper rate cut may stimulate short-term demand—if credit conditions respond. But export sectors remain vulnerable, especially amid lingering U.S. tariff pressures and volatility in key commodity markets.

Cautious Expansion for Aussie Logistics Firms Amid Cost Pressures

Rising operational costs are forcing many Australian logistics companies to take a more cautious and strategic approach to expansion. As reported in early October, labour shortages, elevated equipment prices, fuel cost volatility, and tightening margins have slowed the pace of infrastructure investment and network growth across the industry.

Rather than large-scale expansions, many operators are now focusing on improving efficiency, resilience, and digital capability, with capital being allocated to fleet renewal, automation, and warehouse optimisation instead of greenfield development. This signals a broader industry trend of “smart growth” over aggressive scaling.

While some major players continue to pursue national footprint strategies, especially in retail and e-commerce segments, the general sentiment is conservative — prioritising profit stability and service reliability in a highly inflationary and volatile economic environment.

This mirrors what KLN Oceania has seen among our partners and competitors, reinforcing the value of scalable, flexible solutions for customers navigating uncertain times.

Ocean Freight Updates

• Carriers' booking utilization sits at 85%-95% to both AU and NZ, with irregular blank sailings and cargo rolling. 

  We are into the peak, and the vessel space is tight—book in advance.

• COSCO shipments to AU Transshipment via Singapore keep waiting times around 2-3 weeks in SIN, under their FIFO operational policy.
• Blank Sailings are expected with an average 10-13% capacity cut for the rest of October 2025.

Carriers Prepare Rate Hike Tactics with Blanked Sailings Ahead of Contract Season

Carriers are reportedly planning an “aggressive push” in pricing as the contract season approaches. Many intend to blank more sailings and cut capacity to force upward pressure on rates—even amid soft market demand. Hapag-Lloyd, for example, has already signalled new FAK base costs as part of this push.

This strategy is not limited to just one or two lines. Major carriers across alliances are said to be readying similar moves to defend margins and reshape supply-to-demand balances in their favor.

What Importers Should Watch For:

• Sudden blanked sailings with limited notice, disrupting booking plans.
• Steep General Rate Increases (GRIs) or surcharges layered onto base rates.
• Reduced space flexibility as containers get reprioritised for contracted volume.
• A more volatile rate environment—locked-in contracts may offer stability in contrast.

It’s a crucial time to negotiate, forecast accurately, and stay alert to carrier announcements.

Spot Rates Continue to Slide Across Main East–West Ocean Trades

Spot container rates on major east‑west routes fell again this week, extending a broad downward trend. According to Drewry’s World Container Index (WCI), the Shanghai‑Rotterdam route dropped about 7%, while Shanghai‑Genoa fell nearly 9%. Meanwhile, transpacific rates from Shanghai to Los Angeles were down 5%, and Shanghai–New York eased by 3%.

These declines come as China observes its Golden Week holiday—pausing many port operations—and demand softens post front‑loading. Some carriers are preparing to introduce new FAK (Freight All Kinds) rates from mid‑October in response to ongoing pressure.

Importers should expect a continued soft rate environment into Q4. It’s wise to lock in space early, stay alert for blanked sailings, and avoid assuming a rebound will follow the early-year rate surge.

Carriers Expand Services to Tap Growing China‑Southeast Asia Trade

Freight carriers are ramping up services in response to escalating trade flows between China and Southeast Asia. For instance, Evergreen, Wan Hai, and Yang Ming have launched a new North China–Indonesia route from 31 October 2025, linking ports such as Dalian, Jakarta, Singapore, Kaohsiung and Port Klang. This joint service positions the route to better accommodate the shifting trade patterns.

Meanwhile, major lines like Hapag‑Lloyd and CMA CGM are also boosting their intra‑Asia presence with new feeders—such as a Vietnam–Cambodia–China (VCS) service—and additional port calls, aligning with the broader Gemini cooperation strategy. Their goal: strengthen coverage and mitigate rate pressures amid uncertain demand trends.

These moves reflect a broader realignment: ASEAN has overtaken the EU as China’s largest trade partner for the first time, driving urgency in route development across the region. For Oceania exporters and importers, the expanded connectivity could offer more flexible routing, improved transit reliability, and backup capacity, especially when transpacific corridors remain under volatility.

China’s Retaliation to U.S. Port Fees Likely to Be Symbolic, Not Disruptive

China has announced retaliatory measures against the U.S. Trade Representative’s (USTR) new port call fees targeting Chinese‑built and Chinese‑operated vessels. Beijing plans to amend its maritime regulations so it can respond in kind.

Industry analysts suggest the retaliation is unlikely to meaningfully disrupt shipping operations. While the USTR fees—set to begin 14 October 2025—pose a financial burden on Chinese carriers, they will not deter U.S. imports or trigger broad supply chain disruption. Instead, the Chinese response appears more political than practical.

Carriers are already adapting. Several lines are redeploying non‑Chinese built vessels on U.S. trade routes, and some are shifting Chinese ships to non‑U.S. services to mitigate exposure. The global shipping network is expected to absorb the changes, with most impacts absorbed through margin adjustments rather than significant market churn.

Chittagong Port Imposes Sharp Tariff Hikes After Decades

Chittagong Port Authority (CPA) has enacted its first significant tariff increase in nearly 40 years, implementing average rises of 40–41% across port services. Several charges have increased even more drastically—berthing fees in the first 12 hours have doubled, while some 36‑hour berth overstay fees surged up to 900%. Container handling costs jumped from Tk 11,849 to Tk 16,243 per 20‑foot container. These new tariffs were approved via a gazette on 14 September 2025 but were temporarily suspended; collection is now set to resume midnight, 14 October 2025.

The overhaul affects 23 core service categories within Chittagong’s 52‑head tariff structure. Import charges have increased by Tk 5,720 per container, export charges by Tk 3,045, and individual operations like loading/unloading will see added costs of nearly Tk 3,000 per container. Tugboat, pilotage, quay crane, and other fees also underwent sharp revisions.

Industry response has been swift and fraught: traders and exporters warn the hikes will erode competitiveness, particularly for Bangladesh’s garment sector, which routes roughly 80% of exports through this port. Many argue the increases were imposed without adequate consultation and question whether services have improved to justify such steep cost escalations.

For companies importing via Chittagong or using it as a transshipment hub, this means factoring in higher port service fees and potential congestion. Review your supply chain margins, freight contracts, and alternate port options now.

Ocean Freight Snapshot (October 2025)

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

Air Freight Updates

Airfreight Rates from China Surge Amid Golden Week, Typhoon Disruptions, and Rail Chaos

Airfreight rates ex-China are experiencing a sharp spike in early October as multiple overlapping disruptions impact available capacity and fuel demand volatility. The Golden Week holiday (1–7 October) has significantly reduced factory output and truck availability, while Super Typhoon Ragasa caused widespread flight cancellations and delays across Southern China, particularly in Guangdong and Hong Kong.

Compounding these issues, rail freight between China and Europe has also been affected by recent derailments and congestion on critical inland routes, pushing more cargo to shift to air as shippers rush to meet pre-Q4 deadlines.

Spot airfreight rates from Shanghai to Europe and the US have increased by as much as 30% week-on-week, with forwarders reporting tighter capacity, longer booking windows, and more last-minute premium surcharges.

Shippers with urgent or time-sensitive cargo should plan ahead, explore multimodal options, and lock in bookings early as market conditions remain volatile into mid-October.

Airfreight Peak Season Fizzles Amid Long-Term Rate Pressure

Airfreight markets are entering Q4 2025 with muted expectations. According to Transport Intelligence’s latest rate tracker, the typical seasonal spike has proven short-lived. While brief demand surges were seen in early September, market analysts now predict a fragmented and sluggish finish to the year. Structural challenges such as overcapacity, persistent rate volatility, and shifting trade lanes are undermining the traditional peak season cycle. Rates have been unable to sustain momentum, and signs point to continued softness through Q4 unless macroeconomic or geopolitical shifts change course.

China Southern Confirms Direct Guangzhou to Darwin Flights Beginning December 2025

China Southern Airlines will begin operating non‑stop flights between Guangzhou and Darwin, starting 3 December 2025, with three weekly services during the northern hemisphere winter season. The route will utilise a Boeing 737 MAX 8 and yield approximately 52,000 seats annually.

This connection is expected to enhance trade, tourism, and education ties by providing more direct access to China and linking Darwin into China Southern’s global network via its Guangzhou hub.

Air Freight Snapshot (October 2025)

Customs, Inland Transport, Terminal and Regulation Updates

Super Typhoon Ragasa Disrupts Supply Chains Across East Asia

Super Typhoon Ragasa has caused severe disruption across key supply chain corridors in East Asia, including China, Hong Kong, Taiwan, South Korea, and Japan. With sustained winds exceeding 200km/h, Ragasa forced the temporary closure of multiple ports and airports last week, including Shekou, Yantian, and Taichung, as well as suspensions of air cargo operations in Hong Kong and Taipei.

As of early October, most terminals are in recovery mode, but backlogs remain due to vessel rollovers, missed port calls, and suspended feeder services. Major carriers have issued force majeure notices for impacted sailings, with blanked sailings likely in the coming weeks.

Key impacts to note:

• Delays expected across East Asia export hubs, especially China–Oceania lanes
• Possible equipment shortages as empty container repositioning is affected
• Feeder vessel delays in intra-Asia networks
• Congestion at transshipment hubs, including Singapore and Busan

Customers are encouraged to provide advance forecasts and remain flexible with routings and departure dates.

Expect Delays: China’s New Export Controls Disrupt Outbound Cargo

If you're sourcing goods from China, expect potential delays and added compliance risks.

As of October 2025, China has tightened regulations around dual-use cargo—goods that could have both civilian and military applications. This includes a wide range of items like electronics, telecom parts, automotive components, and aerospace materials. The result? Increased scrutiny at Chinese customs, extended inspection times, and a higher risk of held or rejected cargo.

For Australian and New Zealand importers, this means:

• Longer lead times for shipments departing China
• Last-minute delays or holds at origin, especially for high-tech or industrial cargo
• Greater documentation and classification requirements from your Chinese suppliers
• Risk of non-compliance if goods are misdeclared or improperly classified under China’s updated export laws

Forwarders and exporters in China are reporting frequent reviews and tighter enforcement, which is slowing down outbound logistics. If your suppliers are not familiar with the new regime or haven’t yet adjusted their processes, your cargo could be caught in the bottleneck.

What you can do:

• Urgently speak to your suppliers about the new rules
• Ensure all goods are correctly classified and supported by accurate paperwork
• Allow buffer time in your ordering and shipping schedules
• Flag sensitive or dual-use goods early with your freight forwarder or customs broker

This policy shift is part of broader geopolitical tensions and supply chain decoupling trends. Proactive communication with your suppliers and logistics partners will be key to avoiding disruptions.

New UAE-Australia Trade Deal Brings Duty-Free Benefits and Easier Compliance

As of 1 October 2025, the Australia–United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) is officially in force. This means most UAE-origin goods can now enter Australia duty-free, supporting greater trade between both nations.

In addition, the Australian Border Force has waived the need for Certificates of Origin under CEPA and AANZFTA in certain cases. If you're an Australian Trusted Trader (ATT) or working with an Approved Exporter, you can claim preferential tariff rates with a simple Origin Declaration — no extra paperwork needed.

These changes offer both cost and time savings for qualifying importers. If your business trades with the UAE, now is the time to review your documentation processes.

To view the official notices:

• ACN 2025/27
• ACN 2025/28

Port of Auckland Operational Update – October 2025

Container Terminal Operations

Port of Auckland has entered a high-demand period, with operational strain driven by workforce availability challenges—particularly during the school holiday period. This is currently affecting window performance and creating extended processing times and delays.

In response, the port has:

• Adjusted staff rosters
• Prioritised key service areas
• Strengthened coordination with logistics partners

Multi-Cargo (MC) Terminal Update

• Container & Breakbulk Yard: Started the month operating at 25% capacity, expected to scale to 100% during the month as operations ramp up.
• Bledisloe North Wharf: Construction preparation is underway. Expect minor disruptions as light poles are repositioned and the northern roadway is re-aligned and repainted.

If you have any time-sensitive cargo or delivery requirements, we recommend allowing for potential delays and coordinating closely with your freight partners.

BMSB Season: Updated Fumigation Requirements for New Zealand-bound Cargo via ANL, CMA CGM, and CNC

As part of enhanced biosecurity measures for the 2024–25 Brown Marmorated Stink Bug (BMSB) season, ANL, CMA CGM, and CNC have updated their fumigation requirements for cargo moving into New Zealand.

These changes apply to targeted high-risk cargo categories and reflect compliance with the Ministry for Primary Industries (MPI) regulations. Cargo that is subject to mandatory treatment must now be fumigated using approved methods before departure, with valid MPI-compliant documentation presented at origin.

To avoid delays, ensure that:

• All fumigation is completed by MPI-approved providers
• Certification is issued prior to loading
• All treatment documents meet current BMSB seasonal standards

These requirements are in effect immediately and apply to all bookings with ANL, CMA CGM, and CNC lines. For further operational details, consult the carrier’s website or speak with your KLN Customer Service contact.

You can read the full requirements here.

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.