DP World Terminals vs CFMEU Union:
The Protected Industrial Action continues at all terminals around the country, DP World have received further advice from the Maritime Union of Australia (MUA) division of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) in terms of work bans and stoppages associated with the PIA for the period Monday 18 December to Sunday 31 December 2023.
The bans and stoppages will continue as they have done for the past 6-8 weeks and the parties being affected most are importers, exporters and the general public. The cost to the industry has been horrendous, trucking companies have had to pay drivers overtime and weekend penalty rates in order to move their clients containers to and from the ports, these are additional costs not budgeted for by truckers or importers and exporters and these unwanted extra costs are affecting everyone’s bottom lines. On the other hand, Government appears to be doing little to try and resolve the situation despite Freight Forwarders and Trucking Associations pushing for some action apart from the two party conciliation which clearly is not working.
The GPSM Transport Team will continue to keep all clients fully updated by the disruptions on our ports during this difficult period.
More port cost increases for 2024:
While the DP World dispute rages on, the port terminals have announced a range of exorbitant landside fee increases that will take effect from 1 January 2024.
Included in the mix are many increased fees for trucking companies in the form of fines and port infrastructure levies as well as surcharges for late slot arrival, bulk container runs, over-length vehicle fees, etc, etc.
Increases in Terminal Access charges have also been announced, particularly impacting Australian east coast container terminals, although they have now been postponed for implementation on 1st February, 2024. The cost levels are being added to the GPSM rate portal.
Red Sea Vessel Movements suspended:
Several shipping lines have diverted their vessel from passing through the Bab al-Mandab Strait crossing the Red Sea following attacks on commercial vessel by Yemen based Houthi rebels.
The Strait is at the entrance to the Red Sea, the approach lane to the Suez Canal.
Asia-to-Europe shippers are facing huge increases in sea freight costs Ocean carriers are already adding war-risk surcharges to shipper invoices, but with the situation deteriorating daily, shipping lines will increasingly look to re-route vessels around the Cape of Good Hope, rather than transiting the Suez Canal.
Delays at Panama Canal:
Panama Canal draught restrictions on one side of the world and rebels attacking shipping transiting the Red Sea enroute to the Suez Canal on the other side, are giving ocean carrier ship managers sleepless nights. According to an industry source, diversions of carrier proforma loops are being scaled up as more services avoid the two waterways.
The water level in the Panama Canal is at all time lows with little hope of rain increasing the level soon, delays for transiting the canal are growing week by week as authorities restrict the vessel draught being allowed to transit.
GPSM wished to thank all our clientele for their continued support throughout 2023 and look forward to again servicing your needs in 2024, we wish you a safe and happy Xmas and a prosperous New Year.