MUA – Protected Industrial Action Industrial Action – Hutchison Ports Sydney

We have received notification from Sydney International Container Terminals Pty Ltd t/a Hutchison Ports Australia Pty Ltd in relation to “Protected Industrial Action (PIA)” by the Maritime Union of Australia (MUA) at their Sydney terminal.

All employees of Sydney International Container Terminals Pty Ltd t/a Hutchison Ports Australia Pty Ltd who will be covered by the proposed enterprise agreement, who are employed at its operations at Port Botany, and who are members of the Construction, Forestry, Maritime, Mining and Energy Union – The Maritime Union of Australia Division, will engage in the following actions:

 

• A stoppage of work of 24 hours duration, commencing 06:00 Saturday 12th to 06:00 Sunday 13th June 2021
• A stoppage of work of 24 hours duration, commencing 23:59 Monday 14th to 23:59 Tuesday 15th June 2021.

The GPSM Transport Team will keep all clients affected by the stoppages informed on a case by case basis.

 

South China Ports in Crisis as Congestion Spreads

South China’s port congestion has gone from bad to worse – delays at Yantian are spilling over to nearby Shekou and Nansha ports.

Below is an article from our USA partners that highlights the current issues in Shenzhen area:

When the bottleneck began over two weeks ago, Hutchison-run Yantian International Container Terminal (YICT) blamed out-of-whack shipping schedules for suspending laden export operations.

Since then, however, multiple shipping lines, including Maersk, have blamed Covid-19 for causing the poor port productivity in the Pearl River Delta.

The company said yesterday: “The situation continues to deteriorate as more positive Covid cases have been confirmed in Shenzhen, where Yantian and Shekou ports are located, and in Guangzhou, where Nansha port is located.

“YICT yard density remains elevated with disinfection and quarantine measures being continuously implemented by local authorities.”

Maersk said it was now expecting delays of 14 days, with productivity at berths in the western area of YICT, where mainline vessels call, still only at 30%.

Export container gate-in times have been cut to three days of a vessel’s estimated time of arrival at Shekou, and to seven days at Nansha, the latter seeing heavy traffic congestion resulting in five-hour delays for empty container pick-up and laden container gate-in, says Maersk.

Stefan Holmqvist, MD of Norman Global Logistics Hong Kong, said: “Pandemic control efforts and cargo congestion are causing transport and logistics delays across the entire region.

“Substantial traffic jams are causing a shortage of trucking capacity, container pick-ups see delays of 10 hours or more and many hauliers require overnight time for haulage, storage and lifting, adding to costs.”

According to the latest AIS data from MarineTraffic, there are currently 36 vessels with a reported destination of Yantian at anchor, including 33 cargo ships. And with no sign of the situation improving, shipping lines have massively increased the number of Yantian port omissions.

Lars Jensen, CEO of Vespucci Maritime, said Hapag-Lloyd’s list of planned port omissions for Yantian over the next four weeks had quadrupled to 16, compared with just four only a few days ago. And he noted that Maersk’s advisory yesterday listing 40 vessel arrivals affected by the congestion was “quite an escalation” from just three days ago, when the shipping line said “several” vessels would be impacted, with cargo shifted to alternate sailings.

Given Yantian’s throughput of 13.3m teu last year and the current drop in productivity claimed by Maersk, Mr Jensen estimated there was around 25,500 teu a day the port had been unable to handle since the crisis began.

“Putting this in context, when Suez was blocked by the Ever Given, it impacted a daily flow of 55,000 teu. But that ‘only’ lasted six days. In Yantian, we are at 14 days and counting –and there is the impact on Nansha and Shekou,” he added.

“Every day increases the backlog of cargo. Once the ports re-open to normal operations we should expect a surge of cargo – at least to the degree there are even vessels available to handle this. This in turn will cause ripples of potential congestion at destinations with a lag time of some two-to-five weeks.”

We have received notification from Victorian International Container Terminal – VICT regarding “Protected Industrial Action (PIA)” by the Maritime Union of Australia (MUA) as follows:

12 hour stoppage from 18:00 on 11th June

12 hour stoppage from 18:00 on 12th June

12 hour stoppage from 18:00 on 13th June

12 hour stoppage from 18:00 on 14th June

12 hour stoppage from 18:00 on 15th June

12 hour stoppage from 18:00 on 16th June

 

The above action will have an effect on all port movements and will disrupt night-time deliveries to/from the VICT Terminal.

Our Transport Team will keep all clients affected by the industrial action updated on any alternative delivery arrangements on a case by case basis.

Patrick Sydney Terminal – Industrial Actions * EA Negotiations:

Patrick Sydney Terminal Manager, Bruce Guy, has confirmed that industrial actions are continuing for at least the next two weeks, in the form of bans on overtime, shift extensions and the performance of upgrades of duties.

The disruptions have been felt more on quayside operations with vessel disruptions last weekend and likely disruptions again this coming weekend, with berthing delays creeping up to approx. 2.5 days.

“There has also been some impacts on rail operations and at least one shift was impacted on road operations” Mr Guy commented.

Patrick Sydney Terminal is trying to manage vessel export receival periods closely to ensure that the Terminal doesn’t become too congested with export containers for vessels delayed from berthing.

Patrick confirmed that Enterprise Agreement (EA) negotiations continue at the national and local levels. Some progress is reported, but there are also “sticking points” between Patrick and the MUA. Patrick is disappointed that the MUA continues to take Protected Industrial Action (PIA) despite the continued negotiations. Patrick also can’t rule out an increase in industrial actions as the negotiations address the identified “sticking points”.

 

Hutchison Ports Australia – Sydney Terminal EA Negotiations:

HPA have confirmed that national level discussions continue with the MUA on the finalisation of a new Enterprise Agreement (EA). Reportedly, a “document is almost done” despite some last minute amendments which are being worked through. The negotiations, which started three years’ ago, are reported to be “coming to an end”. Senior Manager Terminal Operations, Jarrod Graham, also addressed concerns about a reduction in export slots at HPA Sydney Terminal.

The issue is that the HPA Truck Appointment System (TAS) doesn’t differentiate between slots for Direct Return of Empties (DRE) and full export slots. Hutchison has been taking in more DRE, mainly for Zim Line (Gold Star), and the Automated Stacking Cranes (ASCs) can only take in a finite amount of containers per hour.

Jarrod Graham mentioned that with the new Enterprise Agreement (EA), once finalised, the Terminal will move to continuous operations (with staggered meal breaks and shift changes) rather than the current situation where terminal operations cease. This should assist with slot availability and terminal performance.

 

DP World Australia has announced the addition of five new Rubber Tyred Gantries (RTGs) for DP World Sydney Terminal

Scheduled for delivery in April 2022, the machines will be 45% more fuel efficient, and will replace five previously commissioned RTGs as part of DPWA’s commitment to investing in infrastructure and sustainability throughout its operations.

With a total investment of approximately $15 million AUD, the new RTGs are part of DP World’s ongoing renewal of yard equipment at Sydney’s Port Botany Terminal for continued efficiency and enhanced performance across the Australian market

 

Delays and Congestion continues in Yantan Port, China:

Delays and congestion continue in Yantian after a number of port workers tested positive to COVID-19. The port extended its’ temporary closure on export laden containers to Monday this week however port productivity is still suffering serious congestion.

While some lines have omitted Yantian as a port call, there are still some 40 vessels awaiting berths to discharge and load. The port omissions will again throw schedules into disarray. It is expected the congestion will last for at least another week.

 

Order Early to avoid disappointment:

GPSM would suggest that all clients monitor stock requirements closely over coming months as we head into “Peak Season”.

Traditionally starting in August each year, all indications are that the peak is already underway and with congestion, empty equipment shortages and vessel schedules changing on a regular basis, it would appear this season could be more difficult that previous seasons.

Please note we are doing everything possible to secure equipment and bookings as soon as possible, however the above mentioned factors are not helping the situation.

We have been advised by our Asian partners that some lines are diverting much needed tonnage on the Australia/NZ trade to the highly lucrative Asia to Europe and USA trades where freight rates have hit an all-time record.

Some services to Europe-USA that were costing around USD 3,000.00/40ft a year ago and now USD 13,000.00/40ft container.

Please liaise with your GPSM Customer Service Team should you require assistance on any information or urgent bookings.

Who does this notice affect?

Stakeholders in the import and shipping industries—including Master Consolidators, vessel masters, freight forwarders, treatment providers, Biosecurity Industry Participants, importers, customs brokers, and principal agents— associated with shipping or importing goods that require increased intervention during the 2020-21 BMSB risk season.

 

What has changed?

On 1 June 2021, the department will cease it measures for the 2020-21 BMSB risk season.

Goods shipped or vessels departing from BMSB identified target risk countries on or after 1 May 2021, will no longer be subject to the BMSB seasonal measures including the Seasonal Pest Inspection (SPI) on arrival.

Good arriving in the first Australian port on or after 1 June 2021 will not be subject to BMSB Seasonal measures.

Importers are reminded that it is their responsibility to continue to ensure that any goods imported, are free of biosecurity risk material throughout the year, not just during periods of heightened seasonal measures.

All vessel masters and agents are reminded of their obligation to continue to report all insect detections in pre arrival reporting.

Melbourne will be plunged into another lockdown from midnight tonight 27th May, 2021, for 7 days following another COVID-19 outbreak in the state.

Can all clients please advise our Customer Service Team ([email protected]) if your Melbourne facilities will be open and able to receive/dispatch cargo?

We look forward to receiving your URGENT replies so that transport arrangements can be altered/maintained in the next seven (7) days.

Export Shipping Update

Numerous shipping lines are reporting a continuation of record export bookings from Australia at levels never previously seen on all trade lanes.

We understand CMA-ANL Group are fully booked to Papua New Guinea until September 2021, while their New Zealand, USA and South East Asian export services are also heavily booked.

CMA are advising us to book “months in advance to ensure the booking will be uplifted as planned, volumes we are encountering at present have never been seen before”.

OOCL Lines have reported they are also experiencing unprecedented booking levels with little immediate (if any) space available on most services. They have also advised the average berthing delay times in Australia at present as follows:

• Patrick Sydney and Melbourne terminals will face delays of approximately 4 – 6 days this week for off window vessels.
• Indicated delays are for this week’s vessels only and could change depending on labor absenteeism and final productivity.
• Brisbane could face delays of up to 4 days .
• DPW Sydney ( 3 days ) and Brisbane ( 4 days) is facing severe congestion due to late arriving A3 service vessels now clashing with other services and window vessels in Brisbane.
• Patrick Sydney have removed pro-forma move counts on the main China AAA service but could re-introduce move counts due to PIA.
• COR and sublet options will be explored with a view to minimizing delays if necessary.
• Upcoming Patrick MUA action will affect vessel schedules.
• Upcoming PIA action at VICT may cause some delays to ASAL and A3C services
• We are now also dealing with MUA protracted labor stoppages for the next 14 days.

Please advise our Export Team us as soon as possible of any export FCL booking requirements so we can investigate all options for all destinations.

Ocean Freight for most trade lanes out of China has been very high , especially for the China to Europe/USA/Africa trades, however, according to our agents in China the trade lanes to Australia are not as congested and rates are far more stable. Carriers do expect further equipment shortages by the end of May and with this may come higher Ocean Freight rates. Some carriers have again started to arrange blank sailings with reduced space capacity by using smaller vessels. These ploys are creating an artificial market rather than actual booking growth.

Whilst there has been a steady increase in May bookings, it’s too early to predict that our Peak Season has already started. Some carriers are predicting O/F increases ranging between USD 300/20’ and USD 600/40’. Whilst these early forecasts are normal, it remains to be seen if carriers actually go ahead and implement such increases.

Some shippers have already started shipping their Christmas bookings. Some lines are starting to reject bookings to Sydney favouring destinations ports like Melbourne and Brisbane due to congestion in Sydney.

We are in contact communications with our Chinese partners and will keep you updated as more information comes to hand.

Shippers , Customs Brokers and Freight Forwarders are becoming increasingly frustrated by the delays in document processing by AQIS ( Department of Agriculture, Water and Environment ) This is causing unnecessary delays in delivery schedules for Importers and in some case incurring unnecessary costs like wharf storage and container detention.

The Department has issued a notice explaining the situation and how they are trying to rectify this problem .

You can read more here https://www.agriculture.gov.au/import/industry-advice/2021/93-2021

Highlights from the Federal Budget 2021-22 see funding boost for Bio Securities as well as other areas.

Government has committed over $400 million in funding of various Bio Security programs. This is designed to assist importers who have faced delays with the clearance of their goods and facilitate faster clearance.

An additional initiative of over $100 million over 4 years to manage the Bio Security risks associate with Hitch – Hiker Pests such as Brown Marmorated Stink bug ( BMSB ) & Khapra Beetle , the program is designed for greater port surveillance .

Government has committed $2 Billion to deliver a new intermodal Terminal in Melbourne , either west or north.

The terminal is designed to help realize the benefits of dedicated east-coast inland freight line with Trains between the site and Brisbane expected by 2027.

Australian Anti – Dumping Duty System $5 million in funds designed to provide importers and local manufacturers Advice on whether goods are subject to “ anti- dumping duties “ .

Simplified Trade – Government has expanded funding of further $37 million over 3 years to support initiatives to modernize and improve Australia’s Tarde , including a review of the regulatory process and ICT systems that impact cross – border – trade.