Logistics News

Hobart shipping calls fall prey to higher costs

Swire Shipping withdraws freight service but pledges minimal disruption

 

Hobart’s near-three years as a renewed commercial port has hit the seawall with Swire Shipping ending its direct service.

The move follows an “exhaustive internal review”, the China Navigation-owned, Singapore headquartered, liner shipping service has told customers.

“This has been a very difficult decision to take,” Swire Shipping GM Jeremy Sutton says.

“The steep escalation in charter and bunker costs has made the service commercially unviable.

“We would like to thank the Tasmanian business community, our valued customers, staff and service providers for their support over the last two years.” 


Read how Swire Shipping gave Hobart back its freight port status, here


Swire Shipping’s final voyage between Hobart and Melbourne will be completed next month.

“In the meantime, Swire Shipping will work with customers to minimise any inconvenience arising from this decision,” the company says.

Though there were reports of a lack of cargo for the service in 2016, they have not been repeated and all Hobart cargo will now need to be trucked or railed to and from Tasmania’s northern ports, making land transport infrastructure that much more important for southern businesses.

 

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