As members may be aware, Patrick East Swanson Terminal has announced reductions in its night shift land-side road receival & delivery (R&D) operations commencing from 13 January.
We understand that this is due to the loss of business by Patrick in the competitive stevedore market, and a general slowdown in container volumes.
It is ironic that this decision to reduce service levels comes amidst the ever-increasing stevedore land-side Infrastructure Surcharges, with the market expecting Patrick to announce further fee increases for commencement in March 2020.
As highlighted to regulators, this is further evidence that the Infrastructure Surcharge increases are about making up for lost revenue from shipping lines, and not as much about investing in land-side interface productivity improvements, let alone maintaining existing service levels.
The Patrick decision has numerous land-side flow on effects as set out a joint media release prepared by Freight & Trade Alliance (FTA), the Australian Peak Shippers Association (APSA) and the Container Transport Alliance (CTAA).
JOINT MEDIA RELEASE available HERE (FTA/ APSA LOGIN REQUIRED)
Immediate impacts includes wharf transport operators having to change their own staffing, rostering and operational parameters after years of being encouraged strongly by the stevedores to embrace night shift operations.
Also, container detention fee free time issues will likely arise due to the reduction in the opportunities for import containers to be collected from the Terminal and processed through the land-side logistics chain through to empty de-hire in the timeframes set by the shipping lines.
We understand that CTAA led positive discussions with the Terminal about managing the impacts of the decision, and have agreed with Patrick to monitor the situation through January and meet to review the issues again in February. Despite this, the flow-on effects are real and concerning. |
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