Container logistics chain 'wheels have fallen off', says peak body

Truck turnaround times at the DP World West Swanson Terminal have blown out to over four hours, according to Container Transport Alliance Australia director Neil Chambers.

Transport operators had been left being unable to collect all available import containers, and export receivals have been disrupted, leading to more congestion in West Swanson Terminal.

"To say that the operating environment in the Port of Melbourne is 'very challenging' at present would be a gross under-statement," Mr Chambers said.

Australia's competition watchdog has warned disruptions and delays at the country's ports, including Melbourne, are becoming increasingly unpalatable for shipping lines.

The ACCC's 23rd Container Stevedoring Monitoring Report looks at the prices, costs and profits of container stevedores at the nation's ports.

Mr Chambers said the four-hour truck turnaround time took logistics companies back to the bad-old days of excessive queuing at DP World West Swanson.

"Transport operators either must wear that added operational cost or pass it onto the cargo interests through truck waiting time / demurrage charges," he said.

"That is not something anyone needs right now with more expensive, disrupted and clogged supply chains."

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"It also rankles transport operators who keep being faced with higher and higher landside terminal access fees, including the announcement by DP World in October of further increases to be implemented from January 2022," Mr Chambers said.

Quite rightly, transport operators and other landside logistics stakeholders were saying 'where are the commensurate productivity improvements?

"There aren't any."

The ongoing protected industrial actions by Patrick's workforce and the Maritime Union of Australia in pursuit of their Enterprise Agreement had also resulted in a significant reduction in available vehicle booking slots.

"Transport operators simply can't get sufficient slots and are asking Patrick to expend free time before import storage charges accrue." Mr Chambers said.

"Patrick's management has blamed the situation on the MUA as well as on the Fair Work Commission (FWC) for supporting the MUA, saying that the situation is 'outside of our control'.

"Therefore, Patrick is refusing to waive import storage charges."

He said Patrick had been in failed EA negotiations for almost two years.

Patrick was punishing importers by not extending free time for containers the cargo interests' transport operators couldn't physically pick up, because of the lack of available resources to do so at the strike-riddled terminal.

Mr Chambers said it was a prime example as to why Australia needed to change its industrial relations laws to recognise container logistics supply chains as an essential service that couldn't be disrupted through unconscionable strike actions

The federal government also needed to establish a Federal maritime regulator that assessed the practices of container terminals on demurrage (storage) charges, and other charging practices.

"Transport operators are reminding their customers that storage charges are part of the contract terms between the shipper, the shipping line and its contracted container terminal, and the consignee.

"Transport operators are not responsible for any storage liability which is beyond their control."

DP World West Swanson has issued a statement that "the convergence of multiple unavoidable events is exacerbating our ability to recover - we are exhausting all resources, both machinery and manpower."

Patrick Terminals has also announced that the MUA has withdrawn its current protected industrial actions until 10 December as a result of a conciliation session before the FWC.

"Our focus is now on ensuring our terminals return to normal on-schedule operations as quickly as possible and we are focused on supporting Australia's economic recovery," Patrick said in a statement.

"We continue to engage with the MUA on a daily basis in an effort to finalise an enterprise agreement."