Why Cleaner Seas Are Making Shipping More Expensive
The push towards lower-emission shipping is accelerating. Stricter IMO carbon-intensity requirements, mandatory vessel efficiency ratings and investment in alternative fuels are shaping carrier behaviour. Operators are slow-steaming, switching to cleaner (but costlier) fuel blends and reconfiguring fleets — all of which carry significant operational cost. These costs are now filtering through the freight market, including to Australian importers and exporters.
What Rising Sustainability Costs Mean for Local Businesses
Australian SMEs are seeing bigger surcharges and slower transit times as carriers adapt to meet environmental targets. Importers of retail goods, machinery and raw materials absorb higher BAF/CAF and “green-adjustment” fees. Exporters — particularly those moving lower-margin agricultural or bulk commodities — are finding freight ratios creeping up, squeezing margins in markets already sensitive to price. For SMEs with thin buffers and limited warehouse space, slower transit intensifies cashflow pressure.
How SMEs Can Stay Ahead of the Clean-Shipping Cost Curve
- Request transparent surcharge breakdowns so costs are fully understood and predictable.
- Adjust production and shipping calendars to account for slower vessel speeds.
- Leverage multi-month rate agreements to protect against surcharge volatility.
- Integrate sustainability moves (carbon reporting, greener packaging) to align with the global shift.
Source: IMO Emissions Compliance Framework & Australian Maritime Energy Transition Brief (2025).
Disclaimer – Market data is from public sources we consider reliable but has not been independently verified; accuracy is not guaranteed