Lyla Lindsey
Australia's maritime history is a rich tapestry of trade and exploration, with the First Fleet of 11 British ships marking the beginning of European colonisation in 1788. Today, thousands of large commercial ships operate in Australian waters, with 99% of imports and exports transported by sea. However, the number of Australian-flagged merchant ships has declined over the years, with foreign-flagged ships becoming more prevalent due to cost and efficiency concerns. This shift has raised questions about the oversight and environmental impact of foreign-flagged vessels. Port development has also played a crucial role in accommodating larger container ships and managing trade growth, with ports facing challenges to keep up with demand.
| Characteristics | Values |
|---|---|
| Number of merchant ships in Australia 30 years ago | 100 |
| Current number of merchant ships in Australia | 14 |
| Percentage of imports and exports transported by sea | 99% |
| Number of cargo berths in Melbourne | 69 |
| Number of ships waiting at anchor in Melbourne in the 1960s | 20 |
| Size of vessels in major East/West trades | Over 18,000 TEU |
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What You'll Learn
The Royal Australian Navy (RAN) fleet
The RAN's surface combatant force consists of three destroyers and seven frigates. The submarine force, also known as the Royal Australian Navy Submarine Service, operates the Collins-class submarines. The RAN also has amphibious warfare assets, including two Canberra-class landing helicopter dock ships and the Bay-class landing ship HMAS Choules, which was acquired in 2011.
For patrol and border protection, the RAN operates three Armidale-class and six Cape-class patrol boats. Additionally, two Huon-class vessels are used for minehunting and clearance, while two Supply-class replenishment oilers provide replenishment at sea. The final remaining Leeuwin-class vessel, Melville, is used for survey and charting duties.
The Osborne Naval Shipyard in South Australia has been the main supplier of 'Tier 1 combatant' vessels to the RAN for over 30 years. They have constructed the Collins-class submarine fleet and the Hobart-class destroyer fleet. Osborne will also supply the RAN with the under-construction Hunter-class frigate vessels and nuclear-powered submarines through the AUKUS partnership.
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The decline of Australian merchant ships
Australia is an island continent where 99% of imports and exports are transported by sea, with thousands of large commercial ships operating in Australian waters. However, in the past 20 to 30 years, there has been a dramatic decline in Australian-flagged and crewed ships. Over this period, many Australian companies have made the decision to phase out Australian-flagged ships and replace them with those owned and crewed by foreign companies. This has resulted in the Australian merchant fleet declining from about 100 ships to just 14.
One of the few Australian-flagged ships left is the MV Searoad Mersey II, which operates in the Bass Strait between mainland and Tasmanian ports. Australian-flagged ships must abide by Australian laws regarding employment conditions, safety, taxation, and environmental regulation. A foreign-flagged ship, on the other hand, operates under the rules of the country where it is registered.
Foreign-flagged ships, also known as "flags of convenience" ships, are more attractive to shipowners because they can avoid the costs of more stringent regulations and tax regimes in their home countries. However, these ships are more likely to have unscrupulous owners and crews working under unsafe and exploitative conditions. Allowing foreign-flagged ships in Australian waters poses risks to the maritime environment and can result in disasters like the grounding of the Chinese coal carrier Shen Neng I in 2010, which caused significant damage to the Great Barrier Reef.
To address the decline of Australian merchant ships, the Australian Labor Party has proposed creating a "strategic fleet" of up to a dozen privately-owned ships that can be requisitioned by the government during times of national need. While there are rules in place to impose Australian standards on all ships operating in Australian waters, the relaxation of laws granting "temporary" licenses to foreign ships has contributed to the decline of the Australian merchant fleet.
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The introduction of container ships in 1969
In the early 1960s, ports in Australia, such as Melbourne, struggled to keep up with the increasing size and number of conventional ships, resulting in congestion and delays. This challenge was addressed with the introduction of containerisation in 1969, which revolutionised the shipping industry.
The first regular container services in Australia commenced in 1969 with the arrival of the "Encounter Bay" in March. This ship had a capacity of 1,572 Twenty-Foot Equivalent Units of containers (TEU) and replaced approximately two conventional vessels on the UK-Australia service. The "Encounter Bay" marked the beginning of international container trade for Australia, connecting the country to global markets.
Around the same time, Overseas Containers (London) Ltd and the Australian company Associated Steamships Pty (ASP) announced plans to build new cellular container ships. This led to the formation of consortia, bringing together multiple shipping lines to operate on a larger scale. The introduction of containerisation required significant investment and infrastructure changes, including the development of dedicated container terminals and the expansion of existing ports.
The Port of Fremantle, for example, underwent a transformation with the construction of the 12 Berth Container Terminal and the installation of a 62-tonne lifting capacity container crane. This enabled the port to handle the increasing container traffic, setting a record of 132,093 TEU in 1991-92. The arrival of hybrid container ships, such as the "Anro Australia," further enhanced trade opportunities between Australia and Asia.
The impact of the introduction of container ships in 1969 extended beyond port infrastructure, influencing work ethics and boosting commerce and industry in Australia. This shift towards containerisation improved efficiency, reduced handling requirements, and facilitated the establishment of regular and reliable shipping services at stable rates.
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The First Fleet
The site of the new colony was named Sydney Cove, and the colony was established as New South Wales, a penal colony and the first British settlement in Australia. The majority of people travelling on the First Fleet were convicts, and they had been tried and convicted in Great Britain, almost all of them in England. Many had come to England from other parts of Britain, especially Ireland, and at least 14 are known to have come from British colonies in North America.
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The growth of transshipment options
The most significant shift in port development occurred in the mid-1960s when major ports had to prepare for the introduction of purpose-built, cellular container ships on the Europe-Australia trade route. This change in port infrastructure and work ethics had a profound impact on commerce and industry.
The increase in transshipment options has led to greater competition and strained the traditional Conference agreement with shippers. The binding shipper contracts, dual rates, and rebate system of the Conference services could not withstand the rising competition. As a result, there has been a shift towards discussion agreements and service agreements between individual shippers and shipowners or groups of shipowners.
Additionally, the growth in transshipment options has contributed to the decline of Australian-flagged ships. Over the years, Australian companies have phased out Australian-flagged and crewed ships in favor of foreign-owned and foreign-crewed ships to reduce costs and remain competitive. This has resulted in a decrease in the number of Australian merchant ships from about 100 three decades ago to just 14 today. However, there are concerns about the potential environmental and safety risks associated with foreign-flagged ships, and adequate oversight is necessary to mitigate these risks.
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Frequently asked questions
As of May 2025, the Royal Australian Navy (RAN) fleet consists of 33 warships and 12 non-commissioned vessels.
The RAN fleet includes destroyers, frigates, submarines, landing helicopter dock ships, patrol boats, minehunting vessels, replenishment oilers, and a training ship.
Australia's merchant fleet has declined over the years, with the number of ships decreasing from about 100 to just 14. This is due to Australian companies replacing Australian-flagged ships with foreign-flagged ones to reduce costs and remain competitive.
There are potential environmental and safety risks associated with foreign-flagged ships. The Australian Maritime Safety Authority must provide adequate oversight to ensure that foreign-flagged ships do not pose a threat to the maritime environment and have well-trained crews and proper working conditions.
The First Fleet consisted of 11 British ships that transported over 1,400 convicts, sailors, and settlers to Australia in 1787, marking the beginning of European colonisation in the country.
