Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) today (27 September 2019) wrote to the CEO of Fremantle Ports raising awareness of the "infrastructure fee charge" regime that is embodied in the administration and operational policies of stevedores / Container Terminal Operators (CTOs) around Australia.
FTA sought a strong message from the Port to shipping lines and CTOs that their actions and methods of operation need to be with the contracted parties and not the road transport operators who have no say on where they go to collect or deliver containers and are being forced to pay these charges or not be able to perform their duties.
Below is an extract of the FTA submission :
In the case of CTOs we have seen these fees increase on average 50% per year over the last two financial years along the east coast ports. It would be fair to say the only reason that the Fremantle operators have not done likewise is they for some time have had no signed tenure arrangements. With this, as we believe, being about to change with the signing of new leases we would like to ensure that these new agreements have in place some restraint on the terminals increasing charges at will for what many would say little improvement to the services they deliver to the road transport operators.
FTA along with other industry associations have argued the rationale and line of charging these fees with the Australian Competition & Consumer Commission (ACCC) and the terminals with no satisfactory outcomes. The response from the ACCC was essentially that this was a state-based matter. One has to be concerned at that given the companies charging these fees operate on a national level.
Whilst Freight Victoria has instigated a review of Port pricing transparency, and FTA, have had preliminary talks with the Minister for Ports in NSW, as well as the NSW productivity commissioner, we seek your support here in WA to generate some sort of constraint on the potential surge in these prices with the signing of leases.
The argument from industry has been across many fronts and should you be available we would be happy to further discuss the following:
As we understand CTOs and Empty Container Parks (ECPs) operate under contracts, liner service agreements we believe with the CTOs, to manage the discharge, loading, delivery to the nominated carrier and receipt of export containers on behalf of the shipping lines. In the case of ECPs the receival of empty containers, release of empty container and maintenance again on behalf of the shipping lines.
Why then are the shipping lines not being charged for services under these contracts – the transport carrier has no contract with either party, save for the carriers access agreements which unfortunately have clauses agreeing to charges over which they have no control and if they do not sign they are refused access.
As mentioned above increases have been 50% or more year on year across the east coast and without some line in the sand the same can be expected here in WA when leases are signed
The increases for Patrick this year were Brisbane ($71.50 increase of 86.9%), Melbourne ($82.50 73.86%), Sydney ($77.50 88.56%), Fremantle no change
- Actual improvement to road transport interaction
Whilst we have seen investment in shipside infrastructure, new cranes, at most ports, the actual equipment used to service road transport carriers remains, in the main, the same and no real improvements in service to same.