Rates of assistance for freight costs

The rate of assistance for freight costs you will receive under the TFES is based on the sea freight cost disadvantage.

This means the difference between the freight cost of transporting by sea or road.

The rate of assistance is calculated by measuring the wharf to wharf cost of a standard 6.1 metre container, or 20 foot equivalent unit (TEU), between northern Tasmania and Victoria, and the equivalent cost to transport across a road distance of 420 kilometres.

Adjustments are made to freight costs where goods are transported in any of the following ways. They're:

  • transported on routes other than between northern Tasmania and Victoria
  • shipped in transport units other than a TEU
  • shipped other than on a wharf to wharf basis.

Where freight carried represents less than a full container load (LCL), freight costs will be assessed at an LCL rate of assistance, that is a pro-rata TEU rate of assistance.

The amount of assistance paid will not exceed the wharf to wharf, or adjusted wharf to wharf, freight bill paid by the shipper. The maximum amount of assistance payable for goods shipped to mainland Australia is $855 per TEU. The maximum amount of assistance payable for goods transhipped is $700 per TEU.

Goods from King Island and the Furneaux Group, going to markets not currently covered by the Scheme, are eligible for an additional 15% loading per TEU.

When we have assessed your claim you will be notified in writing of the amount of assistance you will receive. This will be paid into your bank account. If you have a query relating to our assessment, you can email the TFES support team or phone us on 131 158.

Rates review

To ensure the rates of assistance reflect current freight costs, the Scheme is reviewed every year by the Department of Infrastructure, Regional Development and Cities.

Page last updated: 17 February 2020