Rising tensions in the Middle East are beginning to ripple through the global car industry, with Mazda Australia warning that freight providers have already started changing how they price shipping.
Mazda Australia managing director Vinesh Bhindi said some freight companies moved quickly to increase prices after the conflict between Iran and Israel escalated.
“As soon as the war broke out, freight providers were very quick to say we’re now in an era of spot rates rather than contract rates, so the prices go up immediately,” Mr Bhindi said.
The change to spot pricing – where a real-time price is agreed ‘on the spot’ for a single transaction or short-term need could have significant implications for the car industry because almost every new vehicle sold in Australia arrives by ship.
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More than 1.2 million vehicles were sold in Australia in 2025, according to industry data, and practically all were imported from overseas manufacturing hubs including Japan, Thailand, South Korea and China.
Most automakers ship vehicles under long‑term freight contracts that fix transport rates for extended periods, giving manufacturers stability when planning production and setting vehicle prices.
But when freight providers move to spot pricing, shipping costs are negotiated shipment by shipment.
That means prices can fluctuate quickly, particularly during periods of geopolitical instability like the Israel-Iran conflict.
Bhindi said the industry has seen how quickly freight markets can shift during major global events.
“When I think about the pandemic period and what happened, anything’s possible,” he said.
During the COVID-19 pandemic, shipping disruptions and port congestion caused freight costs to surge dramatically and contributed to lengthy delays for new vehicles arriving in Australia.
Industry estimates suggest the cost of transporting a vehicle by sea jumped from around $800 to $1200 per car before the pandemic to as much as $3500 to $5000 at the height of the crisis.
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Those higher freight costs, combined with semiconductor shortages and supply chain disruptions, left some buyers waiting months or even years for new cars.
When asked about disruption, Mazda Australia said it does not expect immediate interruption to deliveries in Australia.
Most of its vehicles destined for the Australian market are shipped directly from factories in Japan and Thailand, routes that currently avoid some of the most volatile global shipping corridors.
“At this stage, standing here right now, we’re not expecting any immediate impact in Australia,” Bhindi said.
However, the shift towards spot pricing signals that freight markets may already be responding to mounting geopolitical uncertainty.
If shipping costs keep rising, analysts warn manufacturers will either have to absorb higher logistics expenses or pass some of the increases along the supply chain.
For now, automakers like Mazda are watching global developments closely.
“Anything can change,” Bhindi said.
