Canberra seeks Aussie-flagged cargo fleet to secure trade

SYDNEY - Australia is commissioning the first three vessels in a "strategic" commercial shipping fleet it is forming to secure its trade against future wars or disasters – a costly move that has stirred debate about whether the country can rely on global shipping.

- Jonathan Pearlman

The government revealed on Dec 4 that it will commence a five-year trial with three vessels in 2025, with a view to eventually establish a fleet of 12 ships to ensure that Australia has access to fuel and other critical supplies in times of crisis.

Australian Minister for Transport Catherine King said the vessels could be requisitioned by the government "in times of need, crisis or national emergency – such as natural disasters or conflict". Under normal circumstances, the vessels will ply on a commercial basis.

"Covid-19, natural disasters and other challenges have underlined the importance of a resilient domestic maritime sector, one that can keep meeting our needs even through such disruptive events," she said in a statement.

In the wake of the pandemic, the government has made a series of moves to protect supply chains in areas deemed vulnerable or sensitive.

It has committed to a four-year A$49.5 million (S$42.4 million) programme to protect diesel fuel supplies. It has also introduced a 10-year programme to ensure steady supplies of lithium, nickel, cobalt and silicon by providing up to A$7 billion in tax credits for processing and refining of these critical minerals domestically.

But analysts have mixed views on whether Australia needs to protect its commercial shipping sector.

Ms Louise McGrath, head of Industry Development and Policy at AI Group, the country's main employer group, told The Straits Times there was "no evidence that ships won't come to Australia in a crisis".