For Australian drinks businesses importing from Europe, the past few years have provided a constant reminder of how quickly events on the other side of the world can affect freight costs, transit times and ultimately the availability of products on Australian shelves.
There are, however, some reasons for optimism as we move through 2026.
One of the most significant developments is the cautious return of container shipping services to the Suez Canal. Following more than two years of disruption in the Red Sea, major carriers have begun announcing the resumption of selected services through Suez, rather than routing vessels around the Cape of Good Hope. For European–Australian trade, this could be an important development. The Cape route adds significant sailing distance and transit time, while also tying up vessel capacity for longer periods. A broader return to Suez would potentially shorten transit times, improve schedule efficiency and, over time, release additional capacity into global shipping networks. However, businesses should be cautious about assuming an immediate return to “normal”. Carrier decisions remain closely linked to the security situation in the Red Sea and Middle East, and shipping lines are likely to continue taking a measured approach to reinstating services.
At the same time, there is another positive development for businesses trading between Australia and Europe: the conclusion of negotiations for the Australia–European Union Free Trade Agreement. The agreement represents a significant step forward in the Australia–EU trading relationship and is expected to progressively remove tariffs on the vast majority of goods traded between the two markets. For the drinks sector, there are also specific developments relating to wine, including updated arrangements around permitted grape varieties and winemaking practices.
For Australian wine producers, European market access is an obvious opportunity. For Australian importers and distributors, the agreement could also create opportunities to reassess sourcing strategies and the landed cost of European products as the new arrangements take effect. These two developments highlight an important point for drinks businesses: the cost of international trade is influenced by much more than the headline ocean freight rate. Transit times, vessel availability, inventory requirements, currency movements, customs duties, tariff concessions and clearance processes can all have a material impact on the final landed cost of a product.
The current environment therefore presents an opportunity for businesses to review their supply chains rather than simply wait for freight markets to settle. Understanding which products qualify for preferential tariff treatment, reviewing customs classifications and origin documentation, reassessing inventory buffers and maintaining flexibility around routing can all help businesses take advantage of improving conditions while remaining protected against further disruption.
After several years of exceptionally challenging global supply chains, 2026 may finally be giving the industry some reasons for optimism. The key will be making sure businesses are positioned to take advantage of those improvements without assuming that volatility has disappeared.
Harders is a Silver Partner of the Drinks Association.