Australia's international goods trade is a significant component of the nation's economy, with imports accounting for approximately 16 per cent of GDP and exports comprising around 20 per cent. The vast majority of this trade, a staggering 99 per cent by volume, is facilitated by shipping. In the 2018-19 period, the sheer scale of this trade was evident in the statistics: over 6,000 cargo ships made nearly 34,000 calls to Australian ports, which handled a massive 1.7 billion tonnes of freight, including 5.1 million containers. The total value of the cargo moved during this period was a remarkable $573 billion, underscoring the critical role that shipping plays in supporting Australia's economic prosperity.

Coastal trading, which involves the transportation of cargo between Australian ports by ship without traversing international borders, is an integral component of the domestic freight and logistics system. Despite the growth in the domestic freight task over the past four decades, the total volume of cargo moving between Australian ports has remained relatively stagnant. Consequently, the share of coastal trading in the domestic freight task has declined substantially, with road and rail capturing most of the demand growth.

According to recent estimates, coastal trading accounted for a modest 14 per cent of Australia's total domestic freight task in 2020-21, compared to 28 per cent for road and 56 per cent for rail. Moreover, coastal trading's share of the total maritime logistics trade is even more limited, at less than 3.5 per cent.

The cargo volumes transported via coastal trading have remained steady, at approximately 50 million tonnes per annum, over the past decade. In contrast, international sea freight tonnages have experienced significant growth, increasing by nearly 65 per cent over the same period.

Coastal trading primarily involves the transportation of bulk cargo, with intrastate movements in Queensland, particularly the transportation of alumina ores from Weipa to Gladstone, accounting for over 25 per cent of the total tonnage in 2018-19. Furthermore, the top ten trade routes were responsible for more than  55 per cent of the total coastal cargo tonnages moved in 2018-19.

Coastal shipping is a vital component of the supply chain, offering an efficient means of transporting cargo for onshore industries. To ensure the long-term viability of this sector, it's essential that the coastal trading regime strikes a delicate balance between protecting Australian shipping interests and avoiding unnecessary regulatory burdens that could stifle the movement of cargo.

The ideal investment and regulatory framework should be flexible and adaptable, acknowledging the dynamic nature of the shipping industry. This approach will enable the system to support onshore industries in leveraging shipping to their advantage. Moreover, the regime should be designed to accommodate the diverse needs of various stakeholders, including cruise vessels, superyachts, and the offshore oil and gas industries.

A key consideration is the need for a framework which engages the private sector and an approach that fosters opportunities for businesses in the maintenance industry. Furthermore, the maritime industry should prioritize the welfare and skill development of seafarers, ensuring that they possess the necessary expertise to excel in their roles. This, in turn, will help to cultivate a highly skilled workforce, comprising professionals such as pilots, harbour masters, and regulators, who are essential for the future growth and prosperity of the industry.

The importance of coastal shipping in facilitating the efficient movement of goods around Australia cannot be overstated. As a vital component of the nation's transport network, coastal shipping offers a cost-effective and environmentally efficient solution for transporting bulk commodities and other cargo over long distances.