Australian Supply Chain Stress Index
 

The Australian Supply Chain Stress Index is 67 out of 100 (High) as at 14 October 2026. That is the highest reading in the past 12 months. The pressure comes from diesel prices, freight costs and the cost of financing inventory, not from a shortage of goods.
 

What is the Australian Supply Chain Stress Index?

The Australian Supply Chain Stress Index is a monthly measure of supply chain risk for Australian businesses, published by Supply Logis. It combines 12 public indicators covering global shipping, energy, freight costs by mode (sea, air, road and rail) and domestic business conditions. Scores run from 0 (calm) to 100 (crisis).
 

Key figures this month:

• Index: 71 / 100, High. Supply chain sub-score 74; logistics sub-score 68.

• Diesel prices in Australia: 283.0c a litre national average, week to 11 October (Australian Institute of Petroleum), up from about 185c a year ago.

• Oil: Brent crude US$125.44 a barrel, official spot price on 6 October (US Energy Information Administration).

• Container shipping costs: the Shanghai Containerized Freight Index (SCFI) was 3,664 on 9 October, up 136% since October 2025. Shanghai is the main origin for Australian container imports.

• Road freight costs: carrier fuel levies are near 30% (Team Global Express road levy 30.2% from 12 October, against 10.5% a year ago). ABS road freight producer prices rose 17.6% over the year to the June quarter.

• Interest rates: the RBA cash rate is 4.60% after the 29 September decision, the highest since November 2011.

• Strait of Hormuz: 2.5 vessel crossings a day (1–4 October) against about 70 before the conflict (IMF PortWatch).

• Transport insolvencies: 825 transport, postal and warehousing companies entered external administration in the 12 months to September, up 6% (ASIC).
   

What changed since September

The index rose 4 points. Oil and diesel climbed again, road fuel levies rose from 25.1% to 30.2%, global supply chain pressure ticked up (NY Fed index 1.28, from 1.20), and the RBA raised rates for the fourth time this year. Physical supply held up: China’s supplier delivery times are normal, and Port of Melbourne handled 323,301 containers (TEU) in August, its busiest month of the past year.
 

What this means for your business

• Plan for cost risk, not just delay risk. Budget for higher freight costs and check how fuel surcharges are applied in your carrier contracts.

• Track diesel monthly. Diesel feeds into every road freight rate, usually within weeks.

• Re-cost your safety stock. At a 4.60% cash rate, holding extra inventory costs more, so weigh service levels against carrying cost.

• Check your carriers’ financial health. Transport insolvencies remain near record levels.
   

How to read the bands

• 0–25 Low: normal planning assumptions hold.

• 26–50 Elevated: review lead times and safety stock.

• 51–75 High: expect cost pass-through and some missed delivery windows.

• 76–100 Severe: activate contingency plans.
  
   

Frequently asked questions
 
What is the Australian supply chain stress index right now?
71 out of 100 (High) as at 14 October 2026, the highest reading in the past 12 months.
 
Why are freight costs rising in Australia?
Fuel and shipping. Diesel averaged 283c a litre in mid-October, container rates out of Shanghai are up 136% in a year, and road carriers are charging fuel levies near 30%.
 
Is there a supply chain disruption in Australia right now?
Goods are still flowing. Port volumes are strong and China’s deliveries are on time. The disruption is mainly to cost, driven by the near-closure of the Strait of Hormuz.
 
Why is diesel so expensive in Australia?
Australia imports most of its fuel, so diesel follows global oil prices and the Australian dollar. Oil has risen sharply since the Strait of Hormuz, which normally carries about a fifth of the world’s oil, was effectively closed in March 2026.
 
Will diesel prices go down in Australia?
Not until oil prices ease. Diesel follows Brent crude with a lag of a few weeks, and Brent was US$125 in early October with Hormuz still effectively closed. The weekly AIP diesel price is the best signal to watch.
 
How often is the index updated?
Monthly, around the middle of each month.
 
What data does the index use?
Only public sources: IMF PortWatch, the Federal Reserve Bank of New York, the US Energy Information Administration, China’s National Bureau of Statistics, the Shanghai Shipping Exchange, Drewry, Xeneta, the ABS, the RBA, NAB, ASIC, Jobs and Skills Australia, the Australian Institute of Petroleum, Port of Melbourne and published carrier fuel levies.