Author: GPSM

Increase in Adelaide Port Charges:

Flinders Terminal in Adelaide have followed all the other ports Australia wide and will increase their Port Infrastructure Levy from 1st April, 2024 to AUD 245.00 per container.

The revised costs will be added to GPSM rate portal.

Motorway Toll Charges:

Tollway charges have all increased again in February as part of the regular 6 monthly price review process in Sydney, Melbourne and Brisbane.

GPM have been absorbing those regular cost increases for the last 2-3 years but regret we cannot continue doing so, rates are being progressively updated through March and April 2024 in our trucking rate module on the web.

We trust you understand these costs are out of pocket expenses and we need to recoup those outgoings to remain as a viable and reliable transport operator.

*Update* ICS Messaging Delays

ABF Cargo Support confirms there are issues at the moment with ICS messaging and have issued the following notice:

Please be advised that we are currently experiencing delays with EDI messaging.

Clients should expect to experience delays with EDI messages responses.

The issue is being investigated as a matter of priority.

ABF apologises for any inconvenience caused.

BREAKING NEWS:

DP World Secures Four-Year Agreement with Maritime Union, Ending Industrial Action

DP World has reached a significant in-principle four-year agreement with the Maritime Union of Australia, facilitated by the Fair Work Commission, marking the end of all industrial action.

This development comes as a relief to the logistics and shipping sectors, promising stability and improved operations.

The agreement replaces the previous contract that expired in September 2023. It includes key provisions aimed at ensuring fair compensation, enhanced safety measures, effective fatigue management, along with guarantees of job security and work-life balance for employees.

Nicolaj Noes, Executive Vice President at DP World Oceania, expressed his satisfaction with the outcome: “This agreement is a testament to our commitment to our workforce and to providing uninterrupted services to our customers. We are now focused on moving forward, restoring the supply chain operations, and working collaboratively with our employees to rebuild confidence among our customers and make a positive impact on the national economy.”

DP World expresses its appreciation to the Fair Work Commission, various government entities, industry groups, small and medium-sized enterprises, and its customers for their backing during the negotiation phase, underlining its commitment to revitalising and improving supply chain functions across Australia.

Shipment Insurance Update:

We have bee notified by a few clients over the last 24 hours that their Insurance Underwriters have notified them of a change in their Marine Insurance coverage on any shipments moving near the Red Sea or the Suez Canal.

We would recommend that all clients check with their Insurers to see if they could be impacted by a change in coverage. It is important to note that GPSM are not involved in Marine Insurance coverage nor do we have any control over actions taken by shipping lines who despite advising that most of their services are avoiding the Middle East conflict area and transiting to/from Europe via Cape of Good Hope, may at any time decide to alter that decision and divert vessels via the Red Sea or Suez Canal.

Please note that GPSM will not be liable for any claims, damages or losses as a result of the change in policy by insurers or shipping lines during the current conflict.

Australian Port Infrastructure Levy Charge:

Terminal operators have announced an increase in the Port Infrastructure Levy charge as advised in an earlier GPSM Newsflash, from 1st February 2024 the new cost for Sydney, Melbourne and Brisbane will be $ 245.00 per container, the GPSM rate portal will reflect the new charges from that date.

DP World Status:

No change to the current status at DP World Terminals, the Maritime Union of Australia has however advised of on-going Protected Industrial Action now extended until 3rd February, 2024.

Government is still insisting it will not get involved in the dispute in an attempt to broker a deal, instead again advising both parties to seek a resolution via Fair Work Australia.

How much longer does industry need to put up with this strike action and work bans, it has been ongoing now for some 18-20 weeks and neither party appear prepared to make any compromises to their demands?

 

VICT Terminal Melbourne:

Protesters have forced the complete closure of VICT Terminal in Melbourne over the weekend and since, due to security concerns.

Police are still present at the scene whilst a ZIM Line vessel remains at berth, however VICT’s CEO Bruno Porchietto has advised that they are hopeful they will be able to open the gates at some point today subject to conditions.

 

Airfreight Arrival Charges:

Cargo Terminal Operators have announced another cost increase effective 1st February, 2024, the airline handling fee will increase by AUD 0.02/kg and the Airline AWB fee will increase by AUD 4.00 per shipment. The new charges have been uploaded to the GPSM rate portal and will appear on all invoices from 1st February, 2024.

 

Panama Canal Update:

Services from USA and Canada East Coast ports remain disrupted, both Maersk Line and Hapag-Lloyd have announced the following routing change to NZ and Australia to avoid the now long delays for Panama Canal passage:

From US West Coats, containers will ship by vessel to Manzanillo, Panama, be offloaded and railed or trucked to Bilbaoin Colombia where they will load to NZ and Australian ports. Naturally transit times will be impacted by around 10-14 days being added to the journey but better than the possible 2-3 week delays via Panama Canal, albeit with restricted Canal access

 

Red Sea Update:

Rebel attacks are continuing in the Red Sea, last weekend another tanker was targeted by a missile attack. Commercial shipping is generally avoiding the Suez Canal and transiting via Cape of Good Hope, the change in route is adding some 10-14 days to transit times from Europe, Scandinavia, UK and Mediterranean ports to Australia and NZ.

The situation at Australia’s Port Terminals is far from resolved, both DP World and The Maritime Union have been calling for Government to intervene in the dispute but Government have not been willing to get involved to date, rather suggesting the two parties should negotiate a settlement via Fair Work Australia.

The Protected Industrial Action have now been in place for almost 5 months, the fact the dispute is still unresolved clearly highlights a sad reflection on our Industrial Arbitration system.

The cost of the disruptive action to the Australian economy is estimated at $ 84 million per week.

 

DP World Update:

The MUA has notified DP World of additional Protected Industrial Action (PIA) at each of its terminals through to 30 January 2024.

The PIA continues the 2-hour stoppages three times every 24-hours through to 30 January 2024 at all of DP World’s terminals.

It also includes bans on loading trucks and trains at every DP World terminal from 0600, this Friday, 19 January through to 0600 Saturday, 20 January 2024 (0700 to 0700 in Fremantle).

The 2-hour stoppages effectively turn into 3-hour stoppages as no slots are being allocated in the hour time-zone beforehand to try to ensure that all trucks are serviced before the gates close for each stoppage.

Even then, there are reports of futile trips with trucks being escorted from terminals before being serviced in the time-zones leading into the stoppages.

Federal Industrial Relations Minister, Tony Burke, is scheduled to meet with Nicolaj Noes and his management team at DP World this Thursday morning to discuss the dispute.

At that meeting it is anticipated that DP World will urge the Minister to use his powers under the Fair Work Act to terminate the industrial action and order the dispute into arbitration within the Fair Work Commission (FWC) on the grounds of the economic damage being imposed on the Australian economy.

However, the CFMEU, of which the MUA is a division, has urged the Minister to stay out of the dispute, saying that to do so would be “dangerous territory”, and that DP World “could afford to pay” the union’s demands.

We will keep all clients updated on developments as further news comes to hand.

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received the following from James Hookham, Director Global Shippers Forum (GSF), proving a reaction and expectations of the impacts following the air strikes in Yemen over-night.

The latest event that have dramatically shifted the calculations on the Red Sea situation – while avoiding commentary on the political and military aspects, James has provided the following points as to what it could mean for shippers and supply chains reliant on this route :

1. The risks of retaliatory strikes on merchant shipping in the Red Sea area are now extreme, and all carriers can be expected to divert their ships away from the Red Sea and Suez Canal route, if they haven’t already;
2. A working assumption must be that avoidance of the Red Sea and diversions around the Cape of Good Hope will now be the rule rather than the exception, unless or until there is a political settlement which specifically includes the cessation of actions against merchant shipping in the Red Sea;
3. Therefore, all else being equal, shippers (i.e. importers in North America and Europe) should expect a one-off adjustment to schedules and port calls over the next few weeks but after that service patterns should settle into the new longer routes and adjusted port calls, with some stability returning to predicted arrival times of ships and delivery of containers;
4. The same will apply to east-bound sailings, which may affect the availability of empty containers in Asia in the short-term. But, again, this should stabilize over time;
5. Rates on affected trades will inevitably adjust to the higher costs incurred, bearing in mind the greater fuel burn, additional crewing time, insurance and chartering costs. But offsetting these to some extent will be the very substantial savings made in Suez Canal transit fees. These are of several hundreds of thousands of dollars for a typical container ship and these savings should be accounted for by shipping lines when justifying their surcharges and higher rates;
6. The narrative now being heard is that because the Red Sea is effectively closed to shipping, Asia-Europe/USEC shipping rates are going to repeat the sustained spike of 2020-22 (and, by implication, shipping lines will get another big profit windfall). GSF does not believe this is supported by the circumstances. There is no chronic shortage of shipping capacity in the way there was during the Covid pandemic, and there is substantial new capacity expected to be delivered throughout the first half of 2024. Demand for shipping space is also stable, if not declining;
7. Furthermore, the cost increases that will be incurred by shipping lines diverting around Africa are known and finite and should not be talked up into a second shipping crisis on the scale of the first one in 2021. Shippers should check demands for payment of additional surcharges, given that the first vessels affected by the diversion are only just arriving at their destination ports. (The first diversions commenced between 13-15 December, and not every vessel immediately diverted);
8. There have already been substantial increases in quoted spot rates on Asia Europe/USEC trades, but it is important to distinguish between rates that are quoted in hope by carriers and those that are actually being paid in cash by shippers; and
9. Shippers commencing contract renewal negotiations over the next few weeks should avoid being ‘locked-in’ to rates based on currently quoted spot prices. Following a satisfactory resolution of the situation, costs and rates on affected trades can be expected to ‘normalise’ even quicker than they did in 2022. Although it may seem a dim prospect today, this eventuality should be provided for in any agreements made with carriers for 2024-25.

The next few days are critical in whether the Red Sea situation is contained or develops into a much longer-term regional conflict, which would have much wider and profound consequences for international trade. GSF will continue to report and interpret events from a shipper’s perspective.

 

Paul Zalai – Director FTA | Secretariat APSA | Director GSF

Copyright © 2024 Freight & Trade Alliance (FTA) Pty Ltd, All rights reserved.

DP World Terminals Update:

MELBOURNE

At 7.00am AEDT this morning, DP World Port Botany released the following detail :

Due to protected industrial action DPW WST will not open for road operations on Friday 12th Jan from 0600hrs, until Friday 12th Jan 1400hrs.

Slots in these zones will be cancelled.

The road is proposed to reopen at 1400hrs Friday 12th Jan.

Further updates will be provided this afternoon as information becomes available, please check the daily 1-Stop Notifications. We are actively working to reduce service disruptions and will keep you updated.

 

SYDNEY

At 6.50am AEDT this morning, DP World Port Botany released the following detail :

This morning DPW has attempted to engage employees in full R&D operations, this has not been accepted by CMMFEU members who have refused to work as required by DPW.

DPWA management apologises for impact this has on our customers’ business and we appreciate your patience as we actively try to resolve this situation.

GPSM will continue to keep all clients updated with latest information on the Protected Industrial Action instituted by The Maritime Unions.

Current DP World Situation:

Below is an industry Newsflash that gives the latest update on what is happening in the DP World vs Australian Maritime Union dispute, as well as the various interviews and publications that have run articles on the work the Freight Industry in general has been involved with in trying to bring this matter to public attention.

If this situation is not resolved quickly the situation is likely to get a lot worse, GPSM will continue to update all clients as further news comes to hand.

FTA / APSA feature on Channel 7 “Sunrise” – threat of waterfront disruption escalates

MEDIA UPDATE  13

Today marks the final day of the current round of bargaining between DP World and the Maritime Union of Australia (Tuesday 9 January to Thursday 11 January 2024), with Protected Industrial Action (PIA) scheduled to resume tomorrow through to Monday 22 January 2024.

In response to the DP World advice about docking workers’ pay for taking PIA (effective tomorrow, Friday 12 January 2024), alarming overnight media speculation suggests the union’s PIA may escalate to include delays to servicing arriving vessels for 16 hours and not to work on some ships indefinitely.

If true, will this force the hand of DP World to take more drastic action?

When Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) interviewed Nicolaj Noes (Executive Vice President Oceania – APAC of DP World) on 5 December 2023, the option of a lockout of employees was not ruled out.

 

It is important to note that this was a strategy deployed by Svitzer tug operator last year when Nicolaj was CEO. In terms of the Svitzer experience, it had the desired result of forcing Fair Work Commission (FWC) intervention with independent arbitration.

This is a high risk strategy should it be deployed by DP World.

While they may well get the same positive outcome as the Svitzer experience, what would happen next should a lockout of employees be deployed by DP World without FWC or federal government intervention?

Would we face an escalation of crippling disruption experienced in infamous 1998 Patrick waterfront dispute?

Putting this speculation aside, FTA / APSA will continue to pressure the federal government and FWC for intervention.

For members’ reference, FTA / APSA were again active in the media yesterday highlighting the implications on Australian trade, the broader economy and the ‘cost of living’ as a result of the failed bargaining process to date – this included a live interview on Channel 7 ‘Sunrise’, ABC Perth, leading agriculture publication Stock and Land, and highly respected US publication Journal of Commerce..

ABC Perth – Christian Horgan interviews Nicolaj Noes (DP World) and Paul Zalai (FTA/APSA) – recording HERE

Channel 7 Sunrise – Mark Beretta OAM interviews Paul Zalai (FTA / APSA) – recording HERE

Journal of Commerce – Australian shippers face worsening delays from DP World-dockworkers dispute

Reaching an international audience, JOC referenced FTA / APSA before quoting an anonymous APSA member (you know who you are, thank you).

QUOTE:

Paul Zalai, director of the shippers group Freight & Trade Alliance said international vessel delays now vary from two to five weeks.

Highlighting the impact on shippers, a senior executive at a major grain and pulses exporter said not only are cargo owners having to deal with the uncertainty of freight delays, but they’re also being charged substantial extra costs by carriers.

“Vessel schedule changes and omissions have the biggest impact on us,” the source told the Journal of Commerce. “With shipping lines having container availability issues for food-quality boxes, we have to take what we can when we can.

“When terminals close due to union action or carrier schedules change, the containers are either stuck in our own yard, returned to already full storage yards or sent to port where they can be moved back to storage yards,” he added. “All of this double, triple handling comes at a cost.”

He said attempts to recoup the additional costs are ongoing, “but progressing very, very slowly.”

Stock and Land – Port of Melbourne dispute adding hundreds of dollars to export costs

Implications of the failed bargaining between DP World and the union was highlighted in a detailed article referencing APSA member Mark Lewis from Riordan Grains (cost to grain exporters through Melbourne) and FTA / APSA.

QUOTE:

“Shipping lines are charging additional fees due to the industrial action and are not able to help mitigate delays by offering alternate services, particularly to Asian destinations,” he said.

“The lack of predictability of shipping schedule is also seeing many exporters, who rail from regional centres direct to the wharves, now moving and storing their loaded containers at nearby port facilities.”

This was adding transit delays, double-handling costs and additional truck movements, Mr Zalai said.

“Trains often operate on a ‘take or pay’ method, meaning you either use the slot or pay for it anyway,” he said.

“The decision for our regional exporters then becomes whether to double handle the container at the port and pay for storage or pay for the empty train slot and rail it again the following week.”

Mr Zalai said the FTA had not yet had a response from the federal government.

He said members were “hammering” the FTA, letting it know the impact of the dispute.

“We just want the issue resolved,” he said.

“We are not siding with the unions, or the employer, we just need business continuity and to have our wharves open.

“The government is very proud to talk about free trade agreements, trade liberalisation and having a better relationship with China, which is all fantastic and very important, but I think it counts for nothing if we can’t get our boxes (containers) on and off ships.”

FTA / APSA MEDIA COVERAGE REFERENCING PROTECTED INDUSTRIAL ACTION

9 JAN 2024 : Daily Cargo News – MORE MUA PIA, DPW CALLS FOR GOVT INTERVENTION

9 JAN 2024 : Farm Weekly – Ongoing wharf dispute is resulting in multi-million dollar costs

8 JAN 2024 : Australian Financial Review – DP World to dock pay in escalation of waterfront battle

8 JAN 2024 : Triple M Network, SBS and Channel 10 – Industrial dispute impacts on small business

5 JAN 2024 : Australian Financial Review – Australian grape growers fear export hit from port dispute

5 JAN 2024 : Sydney Morning Herald – Shoppers warned to expect empty shelves, delays if ports strike continues

4 JAN 2024 : Australian Financial Review : Australian grape growers fear export hit from port dispute

4 JAN 2024 : ABC Radio National – Breakfast – Australia”s response to Houthi attacks on shipping in the Red Sea

4 JAN 2024 : SBS – Disruption to trade is threatening innocent lives

3 JAN 2024 : 2GB Sydney – Red Sea conflict having impact on Australian trade

2 JAN 2024 : The Australian Financial Review : Industrial action at ports ‘bigger problem’ than Red Sea attacks

2 JAN 2024 : The Australian : Australian trade flowing from Asia is safe but eventually Red Sea disruptions will hit home

28 DEC 2023 : The Australian Business Journal – Global Trade Faces Uncertainty as Red Sea Tensions and Port Strikes Threaten Supply Chains

27 DEC 2023 : SMH: Send navy to the Red Sea for sake of local economy: Dutton

27 DEC 2023 : News.com.au – Price hike fears over Red Sea shipping chaos, crippling port strikes

27 DEC 2023 : The Australian – Price hike fears over Red Sea shipping chaos, crippling port strikes

21 DEC 2023 : The Australian – Red Sea call ‘leaving our allies in the lurch’

19 DEC 2023 : Stock and Land – Red Sea freight blockage has potential to disrupt all supply chains

19 DEC 2023 : Australian Financial Review – Freight, oil climb as Red Sea attacks shut down shipping

17 DEC 2023 : ABC News – UK and US shoot down more Houthi drones in the Red Sea as shipping companies pause operations

 

MEMBER FEEDBACK

We again wish to remind members that while we have an excellent relationship with a wide cross-section of trade, agriculture and mainstream media, we need of “real life” experiences highlighting the impacts to business and the wider economy – this is essential to maintain the momentum and interest for what appears will be a long, drawn out campaign.

Should any member or industry participant be prepared to go on the public record, please contact me at [email protected] on 0408 280123.

Paul Zalai – Director FTA | Secretariat APSA | Director GSF

Copyright © 2024 Freight & Trade Alliance (FTA) Pty Ltd, All rights reserved.