INDUSTRIAL ACTION AT DP WORLD

Ongoing Industrial Action at DP World Terminals:

Following is the updated advice received from Nicolaj Noes (DP World Australia Executive Vice President – Oceania) on the current status at DP World terminals, with industrial action continuing until 30 October, 2023:

 

Dear Customers,

I write to provide an important update on the current protected industrial action being undertaken by the CFMMEU-MUA DIVISION and its impact on our operations.

Since the inception of the bans by the CFMMEU-MUA DIVISON on 6th October 2023, there have been tangible disruptions across all our terminals. Exporters, importers, and the broader supply chain have felt the ripple effects of these disruptions, particularly in berthing arrangements and landside services, including road and rail operations.

However, we are fully committed to seeking efficient alternatives at DP World. We aim to ensure vessels are serviced proficiently, upholding our scheduling commitments.

Over the last six months of Enterprise Bargaining, we’ve approached negotiations in the spirit of collaboration and good faith. Our stance has been flexible, making concessions where they align with the broader interests of our business, our customers, and the Australian community. However, the CFMMEU-MUA DIVISON’s current stance has posed challenges. Recent discussions held in September 2023 brought limited progress. While we had scheduled further meetings for 17-19 October 2023, their continuation is contingent on the cessation of protected industrial actions, a condition the Union has not yet agreed to.

Our priority remains clear: serving the Australian public and ensuring service disruptions are kept to a minimum. In the spirit of transparency and community interest, we implore the CFMMEU-MUA DIVISION to engage in constructive dialogue. While we recognise the right of the CFMMEU-MUA DIVISION to take industrial action, its repercussions are felt by our hardworking employees and the wider Australian community.

In compliance with Section 414(2)(b) of the Fair Work Act 2009 (Cth), please be informed of the forthcoming protected industrial actions by members of the CFMMEU covered under the DP World Enterprise Agreements. These actions aim to advocate for claims concerning a proposed Enterprise Agreement.

For specific concerns:

Your understanding and patience during this period are greatly appreciated. Our commitment is unwavering, and we will continue to work towards ensuring seamless services for all our esteemed clients.

Warm regards,

Nicolaj Noes

Executive Vice President, Oceania

DP World Australia

 

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) once again urges all parties involved in the industrial dispute to work together on a quick resolution to minimize the impact on workers, freight and the nation.

GPSM Transport Team are constantly monitoring the situation in all states and will be in contact with customers that are affected by this industrial action.

Qantas Freight Terminals Backlogs

The beleaguered freight division of Qantas Airways said late last week that it could take another two weeks for some key cargo terminals in Australia to dig out from the logjam of shipments caused by a troublesome switchover to a new cargo management system. Data from the legacy system was supposed to be integrated into the new system but glitches in digital communications and cargo processing immediately cropped up on September 24th.

Nearly two weeks into the crisis, Qantas Freight is struggling to keep shipments flowing and says it will be up to two weeks before warehouse operations at the Sydney and Melbourne airports return to normal, according to a notice posted on their website.

Paul Zalai, director of the Freight & Trade Alliance, on Thursday criticized Qantas’ slow response and suggested angry freight forwarders would demand compensation for financial burdens resulting from multiday delays retrieving shipments.

Logistics providers say manual procedures have not successfully substituted for automated ones. Continuing challenges include the inability of the new system to communicate with X-ray scanning machines, breakdowns in messaging with Australian Customs for clearing imports to enter the country and difficulties tracking the location of shipments.

Qantas management on Friday urged freight forwarders to stop contacting employees they have relationships with seeking favours to expedite their cargo, saying “this in fact is creating duplication of effort across multiple channels and in fact counterproductive to assisting us clear cargo,” according to correspondence shared with members by the Freight & Trade Alliance.

GPSM will keep clients updated as further news comes to hand.

Further Industrial Action

Please see below statement issued by DP World Ports on upcoming and extended industrial action by CFMME Union:

IMPORTANT ANNOUNCEMENT REGARDING UPCOMING EMPLOYEE CLAIM ACTION

Dear Valued Customers,

We hope this notice finds you well. We have an important announcement regarding upcoming employee claim action that may impact our services.

As per the outcome of the Protected Action Ballot No B2023/920, which was declared on 26 September 2023, we are obligated to inform you about the following actions, in accordance with Section 414(2)(b) of the Fair Work Act 2009 (Cth):

    • Starting on Friday 13 October at 0600, all members of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in a work stoppage lasting 8 hours.

 

    • Starting on Friday 13 October at 1400, all members of the CFMMEU whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in a work stoppage lasting 4 hours.

 

    • Starting on Friday 13 October at 1800, all members of the CFMMEU whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in a work stoppage lasting 2 hours.

 

    • Starting on Friday 13 October at 2000, all members of the CFMMEU whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in two consecutive work stoppages, each lasting 1 hour.

 

  • Starting on Friday 13 October at 2200, all members of the CFMMEU whose employment is covered by the terms of the DP World Sydney Enterprise Agreement 2020 will engage in a work stoppage lasting 8 hours.

The below sets out the majority of the bans that have been notified. There are a number of other bans which have also been notified:

 

Please note that during this period, there will be no provision of a bus escort at Port Botany. Additionally, the action will exempt cargo care, but only to the extent required to monitor containers on the usual basis.

We understand that this may cause inconvenience, and we assure you that we are working diligently to minimize disruptions to our services. We will make every effort to resume normal operations as soon as possible after the action has concluded.

The employee claim action being taken is in support or advancement of claims made in respect of a proposed Enterprise Agreement.

We appreciate your understanding and patience during this time.

Please note that GPSM Transport Team will be in direct contact with clients that may be affected by the various industrial actions to reschedule pick-ups and deliveries.

Disruption at Australian Ports

Attached notice from industry body, Freight & Trade Alliance ;lists all industrial action at DP World Terminals expected to be actioned in the coming week.

In addition, Patricks Terminal in Sydney have announced an 8 hour operations shut down from 6am until 2pm on Thursday 5th October, 2023.

Attachments:

The GPSM Transport Team will be in contact with any customers that will have deliveries affected by these industrial disruptions.

US Government shutdown averted till 17th November 2023

The Globe Mail reports that the U.S. Congress was able to pass a bill, in both Houses, and get it to the White House for Presidential signature before midnight, 30 September 2023.

The Globe article states:

The threat of a federal government shutdown suddenly lifted late Saturday as President Joe Biden signed a temporary funding bill to keep agencies open with little time to spare after Congress rushed to approve the bipartisan deal.

The Globe article goes on to state:

After chaotic days of turmoil in the House, Speaker Kevin McCarthy abruptly abandoned demands for steep spending cuts from his right flank and instead relied on Democrats to pass the bill, at risk to his own job. The Senate followed with final passage closing a whirlwind day at the Capitol.

It should be noted that this bill only extends government funding to Friday 17 November 2023

Trade with USA may be Impacted Oct 1st 2023

US GOVERNMENT POTENTIAL SHUT DOWN DRAWS NEAR

IFCBAA has overnight been involved in communications with the NCBFAA (National Customs Brokers and Forwarders Association of America) on this issue.

Both organisations have reciprocal organisation membership with each other, on behalf of their respective members.

Given the now high likelihood of a US Government shutdown this Sunday night (US ET), NCBFAA has issued a joint industry statement, which advocates for all US government agencies involved in international trade to remain open.

At this stage, it appears that an essential services policy may see a number of main border clearance processes in the US remain open, however the full scope of that situation applying across all relevant government agencies involved ininternational trade remains unclear, with high risks of stoppages and ongoing delays, being likely

Unless a surprise solution is agreed upon and rushed through today (Friday) US ET, then the NCBFAA is of the view that this impasse could possibly take several weeks for a resolution to be achieved.

This raises high prospects of significant disruption and delays being experienced in the servicing of cargo at major ports, airports and related precinct areas throughout the US from Sunday night.

Attachments:

Joint Trade Industry Statement Regarding a Potential Government Shut Down on October 1st.pdf

Illegal logging Forms now required for each shipment

The Department of Agriculture, Fisheries and Forestry have advised they now require consignment specific declarations in regards to Illegal Logging.

In the past Annual Declarations were acceptable , however effective immediately we will require a declaration on the Importer’s letterhead as per the attached template to this newsletter.

The Illegal Logging community protection question is a consignment specific lodgement question.

An answer to this question requires the importer to confirm that they have complied with the legislated due diligence requirements for that consignment.

It is for this reason that annual declarations of compliance with due diligence requirements are not acceptable.

Also attached is a fact sheet and below is a link for your suppliers:

https://www.agriculture.gov.au/agriculture-land/forestry/policies/illegal-logging/overseas-suppliers

Attachments:

Illegal-logging-laws-importer-responsibilities.pdf

FURTHER EXTENSION OF THE ADDITIONAL CUSTOMS DUTY ON RUSSIAN AND BELARUSIAN GOODS

The Australian Government has extended the additional duty on goods that are the produce or manufacture of the Russian Federation (Russia) or Belarus for twenty four months to 24 October 2025.

The measure is temporary and the extension is a response to Russia’s continued illegal invasion of Ukraine and the continued support provided by Belarus for this invasion. The measure is necessary for the protection of Australia’s essential security interests. Russia’s actions, supported by Belarus, are a gross violation of international law, including the Charter of the United Nations. They violate Ukraine’s sovereignty and territorial integrity and undermine the rules-based international order. Australia is committed to upholding these principles, which are essential to international, regional and domestic stability and security.

The removal of Most Favored Nation (MFN) treatment previously accorded to goods imported from Russia and the increase in duty is in line with the increases imposed and maintained by the United Kingdom, New Zealand and Canada.

Attachments:ACN 2023_42 – Further extension of the additional customs duty on Russian and Belarusian goods

IMPORTED FOODS ALLERGEN LABELLING TO TAKE EFFECT 25TH FEBRUARY 2024

ATTENTION FOOD IMPORTERS:

Please note mandatory changes which will affect the import of all Imported foods , you should familiarise yourself with this prior to the mandatory implementation by 25/2/24

IFN 12-23: Changes to mandatory allergen labelling (updated) on Imported Foods

 

Date of effect: 31 August 2023

Attention

Food importers.

Purpose

To remind food importers of regulatory changes to mandatory allergen declarations on food labels that come into effect on 25 February 2024.

Key points:

  • On 25 February 2021 the Australia New Zealand Food Standards Code (FSANZ) was amended to introduce new mandatory allergen warning statement requirements.
  • The new requirements include that allergen information must be declared:
    • in a specific format and location on food labels, and
    • using simple, plain English terms in bold font.
  • The three-year transitional period to comply with new requirements ends on 25 February 2024. All food packaged and labelled after this date, must comply with the new requirements.
    • Food packaged and labelled before 25 February 2025 can continue to be sold for up to 2 years.
  • These changes will assist consumers find allergen information on food labels more quickly and easily and allow them to make safe food choices.

Key points:

 

Mandatory Allergen warning Statements

https://www.foodstandards.gov.au/code/proposals/Pages/P1044PlainEnglishAllergenLabelling.aspx

Allergen labelling

https://www.foodstandards.gov.au/consumer/labelling/Pages/allergen-labelling.aspx

 

Attachments:Food Industry guide to Allergen managment and labelling 2023

UPDATED COSTS

Increased Airline Terminal Handing Costs:

Airfreight Cargo Terminal Operators (CTO’s) have announced they will again increase handling fees at all terminals in Australia effective from 1st September, 2023 This is the second increase in the last 2 months.

The revised costs amount to $ 0.02/kg on handling, with an increase of $ 2.00 for Airway Bill fees., updated rates have been added to the GPSM rates portal.

 

LCL Trucking Charges:

When import/export LCL depots introduced time slot bookings some 12 months ago it was hoped it would see an end to the long queues we encountered every day. Despite us having to pay a booking fee for every truck, this has not led to any improvement in the ranks at the LCL depots, in most cases it has made the delays in loading longer.

GPSM has conducted an audit on all LCL import pick-ups and export drop-offs over the last 3 months and have found the delays encountered have added some 3-4 hours per load idle time to our operational costs.

We will be increasing the cubic metre rate by $ 1.00 per cbm/1000kgs and we will be increasing our minimum LCL trucking charges in all states by an average of $ 10.00 per shipment to assist in covering the shortfall, we believe this is a fairest way of spreading the costs involved. Our trucking costs have not increased for some two (2) years despite many cost increases being absorbed over that period.

The new LCL trucking charges will be introduced effective from 7th September, 2023.

 

Panama Canal Shipping Delays:

We are seeing several publications advising that due to drought conditions the water level in the Panama Canal has dropped, resulting in vessel movement restrictions on a daily basis.

On average, these delays are presently adding an around 2-3 days to transit times on services to/from the USA East Coast ports. Vessl operators have also been advised that the maximum vessel draught has also been reduced by some 10%, leading to less containers/tonnage being moved on vessels transiting the Canal.

Authorities are trying to add additional water to the lock system but in drought conditions this will be a slow process.