ABC New Breakfast - Bridget Brennan interviews Paul Zalai on Red Sea implications for trade

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) are advocating for the introduction of regulation to provide a minimum prescribed period before the introduction of any new shipping line surcharge. 

Such an outcome would replicate US legislation that requires shipping lines to provide at least 30 days between the publication and effective date of change to a tariff that results in increased costs to shippers.

Note: the US Federal Maritime Commission is currently reviewing Special Provisions for accelerated application Red Sea Surcharges - a public hearing will be held 7 February 2024

FTA and APSA are of the view that such regulation would also be appropriate in an Australian environment to allow shippers the ability to adjust commercial arrangements against known landed costs.

By way of example, one exporter member alone advised FTA and APSA as of 4 January 2024, the early implementation of Red Sea related surcharges had cost this regional Australian producer USD230K with no chance to recoup costs from buyers.

A request for this legislative change; a continuation for our call to repeal of Part X of the Competition and Consumer Act; and the need for collective bargaining arrangements have been addressed by FTA and APSA in formal correspondence sent today to the Competition Taskforce (Treasury) - refer HERE (FTA / APSA LOGIN RQUIRED)

Adding momentum for reform, FTA / APSA had the opportunity to expose this matter in a live broadcast yesterday morning with Bridget Brennan on ABC New Breakfast - it was noted that shipping lines can achieve instant compensation for any unforeseen event, a luxury not available to exporters and importers.  



Recording available HERE

In addition to commenting on the Red Sea and Strait of Hormuz threats, the interview provided FTA / APSA the opportunity to express appreciation towards shipping lines for continuing to service Australia during these challenging times, and a special call out to freight forwarders and customs brokers for doing what you do best, keeping international trade moving.

Paul Zalai - Director FTA | Secretariat APSA | Director GSF