Coastal Shipping in Australia: A Smarter Way to Move Freight

What is coastal shipping in Australia?

As Australia's road and rail networks face mounting pressure from congestion, driver shortages, and capacity constraints, coastal shipping is a strategic solution for businesses seeking alternatives to traditional domestic freight modes.

Instead of using over the road or rail options for transporting domestic goods, coastal shipping uses Australia’s extensive coastline and domestic ocean services to deliver an efficient, reliable, and sustainable shipping option. The Australian government estimates coastal freight currently represents around 17% of Australia's domestic freight movement, as such the mode is evolving from an alternative into a core component of modern supply chains.

Making the case for coastal shipping

Australia's vast geography and concentrated coastal population centres create unique logistics challenges. Moving goods from the manufacturing and import hubs of the east coast of Australia to Perth and other western destinations has traditionally relied heavily on over the road and rail movements. 

But as these networks approach capacity and face operational pressures, coastal shipping offers compelling advantages: 

• Greater resilience, keeping freight moving even when road and rail networks face disruption from floods, bushfires, or other natural disasters
• A flexible network structure, with predictable coast-to-coast sailings and intermodal connections that support all kinds of freight
• Cost efficiency from lower per-container movement costs and reduced exposure to fuel price volatility
• Added flexibility with modal options like full container load (FCL) and less than container load (LCL) services based on volume needs
• Substantially lower CO₂ emissions compared to equivalent road or rail routes
• Reduced product handling and damage leading to lower waste

Understanding the coastal network

The C.H. Robinson coastal network covers all major Australian ports with predictable and consistent transit times. Intermodal container depots (ICDs) are becoming central to the coastal model, transforming how businesses manage container logistics.

These facilities allow container return, staging, and final mile coordination outside congested port zones. Many businesses now treat ICDs as their inland port, using them for transload, crossdock, and deconsolidation before final delivery.

Connecting international imports with domestic distribution

While international ocean freight and domestic coastal services operate as separate modes, many importers increasingly use coastal shipping as a secondary domestic leg once containers are discharged at their main gateway port. For instance, imported goods arriving in Melbourne or Sydney may be repositioned by sea to Fremantle, rather than moving by road or rail.

Companies consolidate international shipments at east coast distribution centres, then load full containers for Perth or Fremantle. Because there is no customs clearance involved in domestic coastal movements, containers can be loaded to maximum capacity regardless of how many consignments or different shippers are included. This approach allows businesses to avoid congestion at inland transport hubs, reduce trucking kilometres and associated costs, and improve sustainability outcomes.

Is coastal shipping right for you?

Coastal shipping presents a compelling range of benefits, particularly for businesses seeking to enhance supply chain efficiency and environmental performance. See if your company’s goals align with the top benefits of coastal shipping. If so, it is worth considering whether coastal shipping could be the right fit.

Meeting sustainability goals just got easier

According to Ports Australia, coastal shipping produces around one-fifth of the carbon emissions of equivalent road or rail movements. This substantial reduction in emissions makes coastal shipping an increasingly attractive option for companies looking to meet carbon-reduction targets and improve the environmental performance of their supply chains.

Lower freight handling means lower potential damage

Beyond lower fuel burn, coastal services have less physical freight handling than rail, where shunting and frequent coupling movements can increase product damage. Reduced damage means less waste, fewer product write-offs, and a lower overall environmental footprint.

When disruption strikes, coastal delivers

Disruption to inland transport networks is becoming more frequent and more complex, not just in Australia, but globally. Road and rail corridors can be affected by a wide range of events including driver shortages, industrial action, road accidents, rail derailments, and planned or emergency infrastructure projects. Severe weather events—such as floods, bushfires, and storms—add further pressure by closing highways and restricting rail access, sometimes for extended periods.

Major flood events in eastern Australia show how quickly overland freight routes can become impassable. During these periods, shippers can maintain delivery continuity by repositioning containers via Sydney and Melbourne ports, keeping supply chains running when overland routes are inaccessible. The predictability of weekly sailings and access to multiple discharge points ensures consistent flow of product even amid major transport interruptions.

Industries that lead the way with coastal shipping

Many businesses across industries are treating coastal shipping as floating inventory, using predictable transit times to optimise stock positioning rather than over-committing to destination warehousing. For example, the Melbourne services provide a seven-day direct route or a fourteen-day service via Sydney for strategic inventory management. 

While coastal shipping suits a broad range of companies, certain sectors have emerged as particularly strong adopters:

• Beverage: Both alcoholic and non-alcoholic beverage companies have embraced coastal shipping. Product damage rates are significantly lower via coastal shipping compared to road transport, which is a critical advantage for the beverage sector and other industries shipping saleable products.
• Fast-moving consumer goods (FMCG): Retail and industrial businesses with high-volume, predictable demand patterns for FMCG find the ease of coastal shipping particularly valuable as well.
• Construction: Because construction items typically involve heavy, bulky loads with less time-sensitivity, they also align well with coastal capabilities, timelines, and prices.

How technology enables sustainable shipping in Australia

As many organisations aim higher with their emissions and sustainability targets, digital technology is proving to be a game-changer—especially when it comes to coastal shipping. With today’s advanced visibility platforms, businesses can seamlessly track emissions for each container or TEU moved along the coastline and beyond. This delivers the hard data needed to factor sustainability right into freight procurement choices and ESG reporting, all while supporting greener supply chain decisions.

Rather than wrestling with info from a bunch of different sources, coastal shipping users can now view every shipment milestone—from booking and departure to final delivery—in one unified system. Real-time container tracking, instant exception alerts, and easy-to-read dashboards take the guesswork out of logistics.

Top providers, like C.H. Robinson, offer these integrated platforms with live updates and streamlined billing, making it simple to stay on top of coastal and global freight while monitoring environmental impact.

The future of coastal shipping in Australia

Despite compelling advantages, awareness and perception remain barriers for coastal shipping integration. Some businesses default to road and rail without fully understanding modern coastal network capabilities. However, these challenges are easing as the mode proves itself commercially and environmentally viable. The market is maturing and coastal is no longer viewed as niche, but as a core part of a domestic logistics strategy, especially for high-volume FMCG, retail, and industrial organisations.

The next five years will see coastal freight's share grow, driven by the pressures of urban congestion and emissions reduction targets. As road and rail networks approach capacity, many shippers will increasingly look to shift non-time-critical freight to see where it is more cost-effective, scalable, and sustainable. With more integrated coastal-ICD networks available, this adoption is becoming easier and more practical.

Implementing coastal shipping services

Successfully integrating coastal shipping in your supply chain, organizations should follow a structured approach tailored to their unique logistics requirements. Here is a practical guide to implementing coastal shipping within your supply chain.

1. Assess freight needs

Start by mapping your current domestic freight movements to identify routes where coastal shipping could reduce costs, emissions, or transit time. Consider consulting with logistics providers that can model different scenarios and demonstrate the potential impact on your supply chain. Analyse current domestic freight flows to identify which shipments are suitable for coastal transport. Look for non-time-critical, high-volume goods that can benefit from more sustainable and cost-effective shipping modes.

2. Select a trusted provider

Research transportation providers with a proven coastal network, transparent pricing, and comprehensive service offerings. The right provider will have a dedicated account management team that provides scheduled quarterly business reviews, simple door-to-door pricing structures, and emissions calculations to support your ESG reporting.

3. Set continuous improvement goals

Work closely with your chosen provider to synchronize inland transport, port operations, and last mile delivery. Implement ongoing monitoring and reporting practices, leveraging digital tools to track emissions and ensure your operations meet compliance requirements and internal objectives.

Ready to explore coastal shipping?

Embracing coastal shipping offers a strategic opportunity to future-proof your supply chain against rising pressures from urban congestion and sustainability demands. By taking a structured approach and working with reliable providers, it is possible to unlock cost savings and achieve environmental goals.

As the logistics landscape continues to evolve, those that adapt early will be well positioned to benefit from more resilient and scalable freight solutions. Consider coastal shipping not just as an alternative, but as a key component of your long-term logistics strategy.

Still have questions? Learn more about our coastal shipping services and connect with our ocean experts to discuss how coastal freight can strengthen your supply chain.