CEO UPDATE
Over the past fortnight, ALC has remained engaged with the Australian Government through weekly fuel security briefings as pressure continues across pricing, distribution and network capacity. The Government has introduced short-term relief, including halving fuel excise, reducing the Road User Charge to zero, and deferring the scheduled increase, delivering a 32.4 cent per litre reduction for operators.
Coordination across jurisdictions has also increased, with fuel security settings activated and early work underway on prioritisation frameworks. ALC continues to provide direct input, grounded in member experience.
These measures provide some relief, but they do not change operating conditions.
Capacity remains tight across road, rail and terminals. Regional supply is uneven, and pricing pressure continues to move through the network. Operators are absorbing that pressure.
This is not just about supply volumes. It is about how the system is functioning. Diesel moves diesel. Without a working freight transport network, fuel does not move where it is needed.
ALC has reinforced this position through Ministerial briefings and National Fuel Council engagement. Fuel, food and freight operate as a single system, and performance under pressure is what determines resilience.
The focus now is ensuring policy settings reflect how the system actually operates.
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UPCOMING MINISTERIAL & GOVERNMENT MEETINGS
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UPDATES ON PREVIOUS SIGNIFICANT MEETINGS
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POLICY SUBMISSIONS
WORK IN PROGRESS
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POLICY SUBMISSIONS
LODGED
UPCOMING ENGAGEMENTS | 17 APRIL – 1 MAY
1. Select Committee on Productivity in Australia
The Australian Logistics Council is attending the inquiry to bring a freight and supply chain lens to Australia’s productivity challenge.
Productivity is shaped by how efficiently goods move across the economy. Constraints in freight transport – across infrastructure, regulation, workforce availability and land use – are directly limiting performance, including ongoing shortages in critical roles such as heavy vehicle drivers.
The inquiry’s focus aligns with these pressures. ALC will provide practical input on where changes to infrastructure use, regulatory settings and workforce capability can lift productivity, and reinforce the need for freight and logistics to be recognised as a core economic sector underpinning national performance.
The Australian Logistics Council has been invited to appear at the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport public hearing on local government funding.
This invitation provides an opportunity to give further context to ALC’s submission and to represent the role of freight and logistics in supporting national productivity, resilience and supply chain performance.
The hearing will take place on 1 May 2026, with ALC CEO Dr Hermione Parsons appearing as a witness.
3. The Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development, Communications and the Arts, The Hon Chris Bowen MP, Energy and Climate Change Weekly Australian Government – Fuel Security Roundtable
4. Weekly State Government Fuel Security Briefings – New South Wales
5. Weekly State Government Fuel Security Briefings – Queensland
6. Weekly State Government Fuel Security Briefings – Victoria
7. Freight Supply Chain Group, Great Western Highway temporary road closure briefing – Transport for NSW
For further details or to contribute to these discussions, please email Samantha.leighton@austlogistics.com.au
PREVIOUS ENGAGEMENTS
ALC continues to engage with the Australian Government and industry as fuel market conditions remain volatile, and pressure remains across the supply chain.
ALC attends a weekly roundtable briefing with the Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government, which brings together fuel suppliers, freight operators and logistics stakeholders to provide an update on current conditions.
The Australian Government remains at Stage 2 of the National Fuel Security Framework. At a national level, it was reported that supply is holding. Fuel import shipments are locked in through May, and domestic refineries are running at capacity.
There’s been an improvement in distribution over the past week. Retail fuel outages have come down, with around 5 per cent of sites experiencing some form of stockout. Diesel shortages are closer to 2.5 per cent nationally, with regional areas still feeling it more than metro. Easter demand didn’t spike as expected, which helped take some immediate pressure out of the system.
Price is still the issue. Global markets are driving this, particularly out of Asia, and that’s flowing straight through to bowser prices in Australia. The excise reduction is starting to show up, but it’s uneven and slower than people expected. A lot of fuel in the system was bought at higher prices, so operators are still carrying that cost.
The Australian Government has put some support on the table. The Australian Taxation Office is offering flexibility on tax obligations, and there’s now a zero-interest loan program through the National Reconstruction Fund aimed at critical supply chain businesses. The intent is to keep businesses moving and, where possible, lift domestic supply.
That helps with cash flow. It doesn’t deal with what’s already built up. That pressure is still sitting with operators, particularly in road freight.
Aviation is steady for now. Supply is consistent, and forward visibility is improving, but costs are biting hard. Similarly, airports are generally stable overall, with some concern about what the next supply window will look like, particularly in regional locations as we move into May and June.
Rail is in a better position than it was a few weeks ago. The network has recovered from recent disruptions, and there’s capacity if it’s needed. There are early discussions underway about how rail could step up if things tighten further. That’s a positive shift.
Road freight transport is where the pressure is most visible. Smaller operators are doing it tough. Cash flow is tight, costs are high, and there’s uncertainty about how long this will run. There are also reports of poor behaviour towards drivers and fuel distributors, which is only making a hard situation worse.
Public transport operators aren’t reporting shortages, but they’re exposed. The fleet is almost entirely diesel. Diesel prioritisation is at the front of mind, especially with people shifting to public transport as costs rise.
There’s no appetite for any change to fuel specifications, particularly sulphur content, given the impact on Euro standards 4, 5, 6 engines and maintenance.
There’s also a workforce angle starting to come through. Operators are exploring ways to help staff get to work, but Fringe Benefits Tax is getting in the way, which has been raised with the Australian Government.
One of the more constructive parts of the discussion was around what comes next. There’s a growing recognition that this isn’t just about getting through the next few weeks. ALC has proposed collaborating with the Australian Government on practical freight rail initiatives to alleviate pressure on the system where capacity already exists. Our proposal has been well received, but it needs to be worked through properly with the necessary experts – most members of the ALC Council’s Freight Rail Taskforce – involved.
More broadly, there’s a balancing act playing out. Short-term measures are helping keep things moving, particularly on the roadside. But there’s a risk if we lean too far into those short-term measures; it may make it harder to use more efficient parts of the system, like rail.
The Australian Government has been clear. There’s not a lot of money to move, so the focus is on targeted, short-term action. They’re relying heavily on real-time input from industry to guide decisions, and that’s going to continue.
But as supply chain experts, we understand the medium- and long-term consequences of the current global supply chain disruption and will continue to pose questions about Level 2, 3 and 4 regarding fuel prioritisation.
2. Nicole Rosie, CEO, National Heavy Vehicle Regulator – Quarterly Industry Briefing
The National Heavy Vehicle Regulator (NHVR) has commenced work to update heavy vehicle access notices ahead of the mid-2026 rollout of reforms under the National Transport Commission (NTC) to the Heavy Vehicle National Law (HVNL).
These reforms will deliver increased mass and length allowances—widely expected to lift productivity across road freight and improve network efficiency.
NHVR is revising 23 access notices that will become non-operational under the new law (e.g. those referencing Concessional Mass Limits, which will be removed). A further 62 notices require amendment but are more complex, particularly where changes impact road managers and require formal approvals.
These updates will continue post-commencement of the new law. Access notices are the mechanism that determines where and how higher productivity vehicles can operate. Any lag or inconsistency in updates risks limiting the practical benefits of HVNL reforms at rollout.
Clarity on mass definitions and network access will be critical to avoid operational ambiguity for operators.
Industry input:
NHVR has called for industry feedback to prioritise which notices should be updated first, signalling a narrow window to influence how quickly productivity gains are realised on key freight corridors.
3. NSW State Government – NSW Motorways, Industry Reference Group
The first NSW Motorways Customer Reference Group (CRG) meeting brought together industry, freight, taxi, and community representatives to provide input into motorway operations and customer outcomes. The session confirmed a clear shift in focus from individual issues to system-level performance, particularly how customers interact with tolling, communications, and network changes.
A central theme was the establishment of the Customer Advocate function. This role is designed to move beyond handling complaints and instead identify repeat issues, analyse root causes, and drive practical improvements across the system. There is a strong emphasis on building trust in the new function and using industry engagement to test and refine changes early.
Communications and customer understanding emerged as a consistent pressure point. While tailored information is being developed for different user groups, its effectiveness is limited by timing, reach, and clarity. Stakeholders highlighted that information is often released outside existing communication cycles, reducing uptake. More fundamentally, messaging does not always reflect how customers interpret it in practice. This was evident in discussions on road signage, where confusion between “bus lanes” and “bus-only lanes” highlighted a gap between technical design and real-world understanding.
Customer awareness is also constraining system performance. Examples were raised of motorists unknowingly incurring toll costs due to outdated account details or lack of engagement with digital systems. While recent improvements, such as notifications when vehicle ownership changes, are a step forward, they reinforce the broader issue: system settings alone are not enough if users are not aware of them.
There are also clear gaps in industry engagement. Initiatives designed for heavy vehicle operators have seen limited uptake, not due to design issues but because awareness has not reached the intended users. This reinforces the need for more targeted, sector-specific engagement, particularly across freight transport operators.
From a freight perspective, the discussion aligns with broader system pressures we are seeing. Network changes, pricing, and compliance settings are increasingly intersecting with how freight moves through urban environments. Without clear communication and early engagement, these changes risk unintended impacts on operational efficiency.
The CRG provides a direct line into how these issues are being considered and addressed. It will be an important forum to ensure freight transport impacts are understood early and reflected in system design, communications, and implementation.
4. The Australian Government, Fuel Relief Measures and National Fuel Supply Settings
Over the past two weeks, the Government has shifted from announcing fuel relief to putting it into effect and stepping into the market where needed.
From 4 April, the fuel excise reduction and removal of the Heavy Vehicle Road User Charge started to flow through pricing and contracts. On 7 April, the ATO updated fuel tax credit rates, which required operators to adjust claims and, in many cases, fuel surcharge arrangements. These changes are now reflected in day-to-day operating costs across the freight task.
The Government has also increased oversight of fuel pricing. The ACCC has issued warnings to retailers to pass through the excise reduction and has expanded daily monitoring across the country. Fuel businesses have been asked to explain pricing decisions, particularly where surcharges remain high. This is direct intervention to ensure the relief is applied in practice.
On supply, the Government has moved to use its fuel security settings. This has included releasing a portion of national reserves, adjusting fuel standards to increase available supply, and standing up a coordination mechanism to track and manage fuel flows. These steps are aimed at maintaining supply as conditions tighten.
Between 11 and 16 April, the Prime Minister held discussions with Malaysia and Brunei to secure additional fuel supply. This is a direct effort to supplement domestic supply through government engagement rather than relying solely on the market.
On 15 April, a fire at the Viva Energy refinery in Geelong disrupted one of the country’s key fuel production sites. In response, the Government has moved to secure additional imports and indicated it will escalate fuel security settings if required. The incident has highlighted the reliance on a small number of domestic facilities.
There are also signs that the excise reduction has not been fully passed through in all cases. This has reinforced the need for continued ACCC involvement.
Across this period, the Government has taken a more active role. Relief measures are in place, pricing is being monitored, and supply is being managed. The remaining pressure point is distribution. Whether diesel fuel can be moved where it is needed will determine how effective these measures are.
GEOPOLITICAL & TRADE UPDATE
Shipping has resumed, but the network is still out of position
Development
There is some movement back through Hormuz, but operators are still cautious. A number of services are still running longer routes while they work through backlogs and reposition vessels.
Why it matters
Reopening a route does not fix the network. Ships and containers are still in the wrong place. Cargo is arriving in waves, not steady flows.
For Australia, that means longer lead times and less reliable supply chains, even if the risk headline improves.
Implication for ALC advocacy
The issue is now recovery. The system needs to handle variability without creating bottlenecks here.
Freight capacity is still tight, and costs are holding
Development
Capacity has not come back into the system. Longer routes and disrupted schedules are still limiting how often vessels can turn around. Surcharges linked to fuel and risk remain in place.
Why it matters
This is keeping rates up. It is no longer a spike. Costs are flowing into contracts and pricing decisions.
For Australian businesses, higher landed costs are now part of normal conditions.
Implication for ALC advocacy
Freight costs need to stay in the conversation. This is a competitiveness issue now.
The Viva refinery fire has tightened an already constrained fuel system
Development
The fire at Viva Energy’s Geelong refinery has taken local refining capacity offline at the same time global supply is under pressure. Australia is relying more heavily on imports to fill the gap.
Why it matters
Australia already has limited refining capacity. Losing part of it increases exposure to global markets.
That means more reliance on imported fuel at a time when shipping and supply are less reliable. For freight operators, it shows up as higher diesel costs and less certainty around supply.
Implication for ALC advocacy
This is a clear example of how domestic and global risks combine. Fuel resilience needs to be looked at across the full chain, not in parts.
Diesel is still driving cost across the freight task
Development
Diesel remains elevated and volatile. Supply has stabilised in parts of the market, but pricing is still being driven by global conditions and local constraints.
Why it matters
Diesel moves the freight task. When it rises, costs move quickly through transport, agriculture and retail.
Regional areas are still feeling it first.
Implication for ALC advocacy
Fuel needs to stay front and centre. Availability, pricing and distribution all matter.
Ports and inland networks are now dealing with uneven volumes
Development
Cargo is still arriving in clusters rather than steady flows. Ports and intermodal terminals are seeing peaks followed by gaps.
Why it matters
Freight systems rely on consistency. When volumes surge, congestion builds and turnaround times slow.
For Australia, this is where global disruption becomes a local issue.
Implication for ALC advocacy
The focus needs to stay on the full network. Ports, road and rail need to work together under pressure.
Container availability is still uneven
Development
Containers are still out of position due to longer routes and disrupted cycles. Availability is tightening on some export trades.
Why it matters
Exporters feel this first. Bookings get harder, timing becomes less predictable and costs rise.
For Australia, this affects agriculture and perishables.
Implication for ALC advocacy
Equipment flows need to stay part of the conversation, not just vessels and ports.
The impact is now visible at retail level
Development
Retailers and suppliers are passing through higher delivery costs. Smaller operators are under the most pressure.
Why it matters
This is where it becomes visible. Freight costs move into pricing and margins quickly.
For Australia, this is feeding into cost of living.
Implication for ALC advocacy
This helps anchor the argument. Supply chains are directly linked to affordability.
Upstream pressure is still flowing through production
Development
Shortages in petrochemical inputs are still affecting production across Asia.
Why it matters
These inputs sit behind a wide range of goods. When supply tightens, costs rise and availability drops.
Australia sees this through imports and construction materials.
Implication for ALC advocacy
Supply chain resilience needs to include inputs, not just transport.
The economic impact is now clear
Development
Higher fuel, freight and input costs are feeding into business conditions and broader economic pressure.
Why it matters
When costs rise across the system, the effect compounds.
For Australia, this is showing up in pricing, margins and business confidence.
Implication for ALC advocacy
Freight and logistics need to stay positioned as core economic infrastructure.
Food supply risk is still in the background
Development
Pressure on fuel, fertiliser and freight continues.
Why it matters
Agriculture sits across all three. When they move together, costs rise and supply becomes less predictable.
For Australia, that affects both exports and domestic pricing.
Implication for ALC advocacy
Food supply needs to stay part of the logistics discussion.
ALC IN THE NEWS
Is it time to consider the electrification of trucks – ABC 730 REPORT
How Australia can protect against future fuel shocks – AUSTRALIAN FINANCIAL REVIEW
Federal bargain hungry public warned of long tail to fuel shock – AUSTRALIAN FINANCIAL REVIEW
Bargain-hungry public warned of long tail to fuel shock – THE CANBERRA TIMES
Sky News Australia – Kieran Gilbert Report
SUBMISSIONS LODGED
2027 Occupation Standard Classification for Australia (OSCA) update
The Australian Logistics Council (ALC) has made a submission to the Australian Bureau of Statistics (ABS) on the Occupation Standard Classification for Australia (OSCA) 2027 update, calling for improved recognition of the operational complexity, skill intensity and emerging roles across Australia’s supply chain and freight logistics sector. The submission highlights gaps in current classifications, including the underrepresentation of critical occupations and the absence of emerging roles in areas such as automation, digital logistics, sustainability and cybersecurity. Strengthening OSCA will support more accurate workforce data and better inform policy, skills investment and migration settings.
OPEN SUBMISSIONS FOR ALC MEMBER INPUT
National Hydrogen
Regulatory Guidebook:
Pipelines
SUBMISSION: 13 APRIL
Rail Safety National Law –
Consultation Regulatory
Impact Analysis
SUBMISSION: 4 MAY
Consultation Regulatory Impact Analysis Statement (C-RIS) on implementing a forward-looking cost base for heavy vehicle charges
SUBMISSION: 21 MAY
For further details or to contribute to these discussions, please email: policy@austlogistics.com.au
Issued by:
Samantha Leighton,
Head of Government and Industry Affairs
Period:
04 April 2026 – 17 April 2026
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