Shipping company amends contracts after ACCC investigation

Northern Australian shipping and logistics company, Sea Swift Pty Ltd, is to amend its transport contracts after action by the ACCC.

Sea Swift’s services include shipping essential supplies to remote coastal communities in Northern Australia.

The ACCC was concerned that elements of Sea Swift’s contracts with customers were anti-competitive and could significantly increase the cost of living in communities, including to First Nations Australians. The company has acknowledged the ACCC’s concerns that its conduct may breach competition laws.

Removing restrictions

As a result of the ACCC’s investigation, Sea Swift has undertaken to amend its contract terms to remove restrictions stopping other suppliers of scheduled sea freight services in the Northern Territory and Far North Queensland from competing for customers and entering the market.

“Sea freight is literally a lifeline for many remote communities in supplying fresh produce and medical supplies. We had significant concerns about the impact that restrictions on competition in the supply of sea freight services can have on people living in remote communities, including First Nations Australians,” ACCC Commissioner Luke Woodward said.

“If remote businesses have only one supplier of essential services or goods, that supplier has few restrictions on the price it can charge, and consumers are often charged a higher price than they would in a competitive market.”

“This work forms part of our engagement with the National Indigenous Australians Agency (NIAA) to support remote communities having reliable access to affordable food and other essentials,” Mr Woodward said.

‘Misused its market power’

“The amended contract terms will give customers the flexibility to use alternative freight service providers, including the option to transport smaller, ad hoc volumes by sea or road.”

The ACCC was concerned that, by entering into long-term exclusive agreements with staggered end dates, and with some requiring customers to let Sea Swift match any competitor’s proposal, Sea Swift misused its market power and engaged in prohibited anti-competitive exclusive dealing conduct.

“We considered that these contracts could have prevented other freight service suppliers from growing large enough to viably compete, and that Sea Swift’s conduct had the substantial purpose, effect, or likely effect of substantially lessening competition,” Mr Woodward said.

The ACCC has accepted a court-enforceable undertaking from Sea Swift that it will amend its existing and future contracts to remove any anti-competitive clauses. The company will also inform customers in emails and on its website of the details and implement a compliance program.

Background

Sea Swift is a freight service provider which transports general cargo by sea on regular, scheduled services to remote communities in the Northern Territory and Far North Queensland. Since September 2025, Sea Swift has been the sole supplier of regular, scheduled sea freight services on most of the routes in these regions.