Supply Chain Resilience: Managing the Australian Port Strikes fallout

The recent strikes at Australian ports have underscored a critical lesson for businesses relying on global logistics: the importance of building resilience in supply chains. While the strikes themselves have now ended, the impact continues to ripple through industries that depend on the efficient movement of goods between Australia, ASEAN, and beyond. As a freight forwarding company specializing in ASEAN-Australia logistics, we believe that now is the time to rethink how businesses can better prepare for the inevitable disruptions that come with our interconnected global supply chain. In this article, we’ll explore key strategies for strengthening your supply chain, drawing lessons from the strikes that caused significant delays at major Australian ports.

Background

2024 saw Australian ports – including Brisbane, Kembla, Melbourne, Adelaide, Darwin and Fremantle, significantly affected by strikes initiated by the Maritime Union of Australia (MUA) against terminal operator Qube. These strikes were part of a long-running dispute that began in April 2024, when contract negotiations between the MUA and Qube broke down. The MUA accused Qube of deliberately delaying the negotiation process and called on the government to intervene, arguing that Qube was attempting to bypass collective bargaining agreements.

What followed was a backlog of goods, long delays, and shipping vessels left stranded off the coast, including over 36,000 vehicles waiting to be unloaded. The ongoing issue between the MUA and Qube has also led the industry association to call for reform, suggesting that the notice period for strikes be extended from three days to at least 21 days. This extended notice period would provide businesses with a crucial window of time—14 days of sailing time to or from South East Asia (Vietnam, Indonesia, Brunei, etc.), six days for cargo staging, and an additional buffer day. This proactive approach would allow businesses to adjust their plans ahead of time, minimizing the impact of future strikes.

The Importance of Resilience in Supply Chains

For businesses that depend on timely shipments from Australia, this situation presented a significant operational challenge. For industries like automotive manufacturing or electronics that may or may not require out of gauge shipping, delays like these could mean production bottlenecks, missed sales opportunities, and costly delays in product launches.

The Australian port strikes have made it clear that supply chain resilience is no longer just a nice-to-have attribute; it’s a necessity. Resilient supply chains can adapt to disruptions, minimize risk, and continue functioning even when faced with unexpected events like labor strikes, geopolitical tensions, or natural disasters.

When disruptions occur, businesses with fragile supply chains may struggle to meet customer demands, leading to lost revenue, customer dissatisfaction, and supply shortages. On the other hand, resilient supply chains enable businesses to quickly pivot, find alternative solutions, and continue delivering value despite the challenges.

Risk Mitigation

While the strikes themselves have ended, the ripple effect of those delays will continue to be felt in the coming weeks, making it even more critical for businesses to prepare for similar disruptions in the future.

We can clearly see that businesses can’t afford to be reactive when it comes to supply chain management. Instead, proactive planning and strategy development are essential in mitigating the risks posed by disruptions in maritime transport.

One of the key lessons from the Australian port strikes is the importance of diversifying logistics strategies. Overreliance on a single route, port, or mode of transport can leave businesses vulnerable to delays when disruptions occur.

Diversifying Shipping Routes and Ports

Australia’s major ports are highly interconnected, but they are also susceptible to delays caused by strikes or other disruptions, especially one on such a scale. By considering alternative ports for unloading goods—whether in Australia or neighboring countries—businesses can reduce the risk of getting caught in a logjam.

Singapore, for example, plays a critical role as a key transshipment hub for ASEAN-Australia trade. It offers flexibility, allowing goods to be re-routed quickly through a high-volume, efficient port system. Shipping through Singapore can help businesses sidestep potential delays at Australian ports while maintaining smooth logistics operations.

Further Reading: How Australian Businesses Can Leverage Singapore for Global Trade Success  

Exploring Alternative Modes of Transport

While sea freight is the primary mode of transport for large shipments, alternative options like air freight can provide much-needed flexibility. Air freight, while more expensive, offers significantly shorter delivery times and greater reliability during times of port congestion. For businesses with time-sensitive deliveries, like those dependent on cold chain logistics, air freight may be the best solution to ensure goods reach their destination on time.

By collaborating with a reliable freight forwarder, businesses can optimize their logistics strategies, switching seamlessly between sea and air options, depending on the urgency and cost considerations of each shipment.

Further Reading: 8 Things You Should Know About Air Freight in Australia

Building Strategic Relationships with Freight Forwarders

Supply chain resilience isn’t just about route or mode diversification; it’s also about building strong partnerships with trusted freight forwarders. A reliable partner can guide you through disruptions, provide actionable advice, and help you implement contingency plans when things go awry.

Freight forwarders like Arc Freights are experts at navigating the complexities of global logistics. We stay informed about the latest geopolitical trends, labor disputes, and port activities, and we use this knowledge to offer proactive solutions for our clients. Freight forwarders are also well positioned to provide a one-stop logistics solutions for most, if not all, industries.

From facilitating door-to-door sea freight, to tackling the complicated procedures of customs clearance, and safeguarding your interests with cargo insurance, our job is to make sure that your shipments stay on track—no matter what disruptions may arise.

Conclusion

In today’s dynamic global supply chain environment, disruptions are inevitable. However, businesses that prioritize resilience and proactive planning can minimize the impact of delays and keep operations running smoothly. The lessons learned from the Australian port strikes serve as a valuable reminder that building resilience requires proactive planning, diversification, and strong partnerships.

As a trusted freight forwarder specializing in ASEAN-Australia logistics, Arc Freights is here to help businesses strengthen their supply chain resilience. Contact us today to discuss how we can help you build a more resilient supply chain and keep your goods moving smoothly, no matter what the future holds.

Arc Freights is Australia’s leading Freight Forwarder offering QUALITY & RELIABLE logistics services in more than 140 countries. Having plied our expertise in ASEAN for nearly two decades, we are the trusted partner for logistics between Australia and Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. With expert knowledge, advanced technology, and a commitment to reliability, we provide seamless logistics management that helps you focus on what matters most—growing your business.