Australian freight forwarding companies have recently issued warnings about cargo backlogs at Australian ports, caused by terminal strikes.

The months-long union movement against Qube at ports in Brisbane, Kembla, Melbourne, Adelaide, Darwin, and Fremantle has recently come to an end, as the Maritime Union of Australia (MUA) decided to lift the protected industrial action.

While this marks a positive step forward, "widespread delays in loading, unloading, and transporting cargo have resulted in significant backlogs, which are expected to impact the supply chain in the short term."

In fact, reports indicate that earlier last week, more than 12 vessels carrying cars (estimated to hold over 36,000 vehicles) were waiting at sea due to the standoff between unions and terminal operators.

Ronald Spahr, president of Australian freight forwarder ICE, warned that the timeline for resolving delays is “uncertain.” However, he noted that shipping companies would have the most accurate information about when vessels can enter ports. He urged businesses to “implement feasible strategies to enhance supply chain resilience,” as further industrial action is anticipated in the Australian shipping sector.

Spahr explained that ICE's mitigation strategies include identifying alternative routes and ports, advising clients to “consider delaying shipments and bookings where appropriate,” or using alternative modes of transportation such as air freight. He added, “Leveraging advanced technology to improve supply chain visibility and maintaining buffer inventory can provide significant advantages.”

He concluded: “Maritime operations are influenced by various geopolitical and local factors, so proactive planning is essential… In today’s dynamic global logistics environment, ensuring an uninterrupted supply chain requires a proactive approach.”

Previously, the Australian Shipping Industry Association called for reforms to Australia’s labor relations laws and policies, stating that “no group, institution, or entity should have the power to ‘hold the entire nation to ransom.’” The association is advocating for more strike notifications and staggered negotiation procedures to avoid prolonged stoppages across multiple ports simultaneously.

As a major terminal operator in Australia, Qube’s services span several key national ports, handling and transporting large volumes of import and export cargo. However, disputes between the union and Qube over wages, working conditions, and employee benefits led to an impasse, triggering the months-long strike action.