Australia's Costly Supply Chains Raise Concerns

Australia’s supply chains are among the most expensive globally, costing up to three times more than those in other countries. The National Farmers’ Federation highlights underinvestment and extreme weather events as key factors driving costs, raising concerns about efficiency and reliability. Calls are growing for greater reliance on rail transport to reduce expenses and strengthen distribution networks.

Currently, Australia's transport infrastructure struggles with inefficiencies, particularly in road and rail freight. Without a standardised national rail network, businesses face inflated costs when moving goods over long distances. Cyclones and other climate-related disruptions further strain the system, exposing its vulnerability when supply routes are impacted.

Businesses are already feeling the pressure. A leading frozen food company recently faced major supply issues in Queensland following a cyclone, forcing them to diversify production across different growing regions. Preparing for future disruptions is becoming essential as weather patterns and global uncertainties continue to pose risks.

Beyond logistics, supply chain challenges affect Australia’s food security and broader economic resilience. With global shipping disruptions and geopolitical tensions growing, ensuring reliable trade routes and infrastructure is critical. Strengthening supply chain security could help safeguard the nation's long-term economic stability.

Source: The Australian, FreightAustralia, ExportFinance