ALC Government Relations Focus & Review | 20 Feb – 6 Mar 2026

Home Government Relations Focus Review 6 March 2026

CEO UPDATE

Dr Hermione Parsons, CEO ALC

Over the past fortnight the Australian Logistics Council (ALC) has continued to focus its policy and government relations work on the issues most directly affecting the performance, cost and resilience of Australia’s supply chains. During this period, ALC undertook 10 engagements across Commonwealth government, industry and peak bodies, alongside progressing key submissions and consultation processes. 

Recent geopolitical developments are a reminder that we work within global supply chains and Australia’s supply chains do not operate in isolation. Energy markets, geopolitical tensions and global trade policy flow directly through to the cost and reliability of moving freight. For Australia, where long disrupted supply lines and imported fuel underpin the freight task, these risks are particularly relevant. ALC is continuing to align its policy and advocacy work to these pressures, with a focus on fuel security, sovereign capability, resilient freight corridors, protected industrial land and trade settings that support efficient national logistics networks. 

In discussions with government, ALC has continued to emphasise several priorities: strengthening Australia’s fuel security and energy reliability, protecting industrial land and freight corridors, ensuring clear and predictable regulatory settings, and addressing transport workforce shortages already constraining freight capacity in parts of the system.

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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 | 9 MARCH - 20 MARCH

  • Supply chains as sovereign capability infrastructure
  • Industrial land and freight network protection
  • Fuel security and logistics resilience
  • National coordination of critical supply chains

Industry Workshop: Low Carbon Liquid Fuels Knowledge Lab

  • Low-carbon liquid fuels as a transition pathway for heavy freight
  • Scaling supply and distribution through the logistics network
  • Aligning decarbonisation with supply chain resilience and cost competitiveness

National Food Security Strategy

  • Food security is fundamentally a supply chain challenge
  • Protecting freight corridors and logistics land that underpin food distribution
  • Strengthening resilience in critical food supply chains

Government Dialogue follow up

  • Workforce capability across the modern supply chain
  • Addressing workforce shortages in critical freight roles
  • Aligning skills policy with the future of supply chains
  • Freight infrastructure investment and regional supply chain resilience

  • Regulatory barriers affecting freight rail competitiveness

  • Fuel security and freight costs in the current geopolitical environmen

For further details or to contribute to these discussions, please email Samantha.leighton@austlogistics.com.au

PREVIOUS ENGAGEMENTS

The Australian Logistics Council met this week with Minister for Infrastructure, Transport, Regional Development and Local Government the Hon Catherine King MP and advisers from the Department of Infrastructure, Transport, Regional Development, Communications and the Arts to discuss issues affecting Australia’s freight and logistics system.

Key points included: 

  • Supply chain productivity – the importance of integrated freight planning across road, rail, ports, airports and intermodal precincts, and protecting industrial land that supportslogisticsactivity. 
  • Road User Charges – the need fortimelyrelease of the framework so operators and investors have certainty. 
  • Freight rail – elements of the Safeguard Mechanism and current regulatory settings risk limiting rail’s competitivenessrelativeto road and should be reviewed. 
  • Workforce shortages – ongoing shortages of drivers, technicians and logistics staff are constraining freight capacity. 

ALC also invited the Minister to participate in a member roundtable on Road User Charges and to open the ALC Awards Dinner. 

The Australian Logistics Council attended the ACCC Performance Consultative Committee this week and highlighted several pressures facing the freight and logistics sector. 

  • Geopolitical tensions and fuel volatility are increasing global supply chain costs, which flow directly through to freight and the cost of moving goods across Australia.
  • The road freight sector is under significant strain. Insolvencies among small and medium freight transport companies have risen 157 percent over the past three years, alongside more than 28,000 truck driver vacancies. With the average driver now in their 50s, workforce shortages are becoming structural.
  • Trucks are increasingly sitting idle while SME operators continue to carry fixed costs, with flow-on impacts for freight capacity and cost of living across metro,regionaland remote Australia. 
  • Current regulatory settings are also working against the sector’s ability to respond. Complex driver licensing and overlapping regulations, along with elements of the Safeguard Mechanism, can unintentionally limit the shift ofappropriate freightonto rail, despite the opportunity to reduce both costs and emissions. 

The Australian Logistics Council met with representatives from the National Farmers’ Federation to discuss the strong link between Australia’s agricultural sector and the national freight and logistics system. 

Key points included: 

  • Food security – Both organisations noted that food securityultimately relieson fuel, people and the infrastructure that moves goods. While food is produced on farms, the system depends on reliable movement of inputs such as fuel and fertiliser and efficient freight connections to domestic markets and export gateways. 
  • Export competitiveness – With most Australian agricultural production exported, the performance of the freight network is closely tied to the sector’s international competitiveness.
  • Workforce pressures – Labour shortages across agriculture andlogisticsare emerging as a shared constraint, particularly in regional areas. 
  • Land use pressures – Competition for land between food production, energy development,housingand industrial uses is increasing pressure across parts of the supply chain. 
  • Freight access – Local government truck curfews were raised as an example of policies that can create unintended supply chain impacts if freight movements are restricted without considering system effects.

Both organisations noted the strong alignment between agriculture and logistics and the importance of continued collaboration on issues affecting Australia’s food system and supply chain resilience.

GEOPOLITICAL & TRADE UPDATE

Development
Tensions between the United States and Iran have sharpened again over the past fortnight, bringing renewed attention to the Strait of Hormuz. A number of tanker operators have reportedly slowed or paused movements through the corridor as a precaution while markets assess the risk environment.

Why it matters
Roughly 20 percent of global oil supply moves through the Strait of Hormuz. Even the possibility of disruption tends to push oil prices higher and lift shipping insurance costs. For Australia’s freight task, that flows quickly into diesel and aviation fuel pricing.

Further reading >

Development
Reports this week indicated a spike in fuel purchasing in parts of Australia as motorists anticipated higher prices linked to global oil market volatility.

Why it matters
Domestic fuel markets react quickly to global signals. Sustained increases in diesel or aviation fuel prices flow directly into freight costs and ultimately the cost of moving goods across the economy.

Further reading >

Development
Energy markets have been carrying a growing geopolitical risk premium in recent weeks. Analysts are warning oil prices could climb further if tensions in the Middle East escalate.

Why it matters
Australia imports the majority of its refined fuel. Movements in global crude markets translate fairly quickly into diesel and jet fuel prices, which directly affect freight operating costs across road, rail and aviation.

Further reading >

Development
The United States has signalled the possibility of new tariff measures following legal challenges to earlier trade actions. Governments and industry are now assessing potential impacts on global trade patterns.

Why it matters
When major economies adjust tariff settings, trade flows tend to move with them. Even where Australia is not directly targeted, changes in global trade settings can alter shipping demand, export competitiveness and port volumes.

Further reading >

Development
Australia announced additional sanctions against Russia to mark four years since the invasion of Ukraine, expanding restrictions on individuals and entities linked to the Russian state.

Why it matters
Sanctions regimes increasingly affect shipping, insurance, finance and trade documentation. For operators moving freight across jurisdictions, compliance requirements are becoming a more significant operational consideration.

SUBMISSIONS LODGED

The Australian Logistics Council provided a submission to the NSW Department of Planning, Housing and Infrastructure on the Draft Statewide Policy for Industrial Lands. The submission supports the development of a statewide industrial land framework but highlights that industrial precincts function as critical freight infrastructure underpinning port operations, rail freight, fuel supply chains and last-mile distribution. ALC notes that industrial land supply across metropolitan Sydney remains highly constrained, with limited serviced and development-ready land occurring alongside significant forecast growth in freight volumes. The submission examines risks associated with last-mile land erosion, infrastructure delivery gaps, reverse sensitivity impacts and inconsistent local interpretation of employment zones, which collectively threaten supply chain efficiency and investment certainty. ALC calls for industrial land classification based on freight function and network connectivity, coordinated infrastructure sequencing to ensure operational readiness, recognition of port and intermodal catchments as integrated logistics ecosystems, and stronger planning protections that enable 24/7 freight operations and long-term supply chain resilience.

View Submission >

OPEN SUBMISSIONS FOR ALC MEMBER INPUT

2027 Occupation Standard
Classification for Australia (OSCA)
update

SUBMISSION: 10 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:
20 February – 06 March 2026

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