What the escalating cost of sea freight means for Australian beef

Australia in some years exports close to 80 per cent of its beef and sheepmeat production. This is the largest export exposure that any major red meat producer has in today's international market, apart from New Zealand. The red meat industry in Australia is underpinned by the ability of the processing and export sector to place such a high percentage of our production on export markets while seeking a premium return. As a high quality supplier that is a long way from most major export markets and having access to an efficient, cost-effective and reliable global sea freight service becomes an essential parameter in the overall export formula. To deliver our exports to the world has, in past years, required up to 90,000 food grade TEUs or 20ft equivalent containers a year. The cost of obtaining those containers when you need them and then moving them to your international customer in a timely manner has an important influence on the pricing mechanism that ultimately determines what ...