Further to our member notice titled State Governments - ramping up to take action on stevedores, we are heading towards state governments regulation to stop the use of stevedore-imposed Infrastructure Surcharges.
As outlined in our member notice on 30 March 2020 titled DP World Infrastructure Surcharge COVID-19 Measures, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) has continued its advocacy to:- prevent increases in stevedore imposed Infrastructure Surcharges (now more appropriately referred to as "Terminal Access Charges"), particularly during the current COVID-19 pandemic; and
- introduce regulation to remove the imposition of Terminal Access Charges with stevedores to recover operating costs via their commercial clients (shipping lines).
APSA MAINSTREAM MEDIA
Further to our report on developments in NSW, we are pleased to see the Australian Financial Review is again putting the spotlight on this matter in yesterday's article titled NSW steps up pressure on stevedores over port fees.
This follows the commentary from the Hon. Melissa Horne Minister for Ports and Freight (Victoria) who shared our concerns as reported in The Age on 30 March 2020 titled 'Unacceptable': Minister slams DP World's plan to hike import fees saying "This decision is unacceptable," and "Especially at a time when everyone should be pulling together to keep freight moving."
BREAKING NEWS
In what is no doubt the most significant development in our advocacy activity, we received formal correspondence yesterday from the Hon Melissa Horne, Minister for Ports and Freight stating "I, like you, was disappointed to learn that DP World is to increase its access charges again for importers at the Port of Melbourne for the second time in four months at short notice."
Key points raised:- The timing of this decision was particularly disappointing, coming at a time when Victoria is experiencing unprecedented pressures and disruptions across the port supply chain as a result of the COVID-19 crisis
- if voluntary standards did not improve pricing transparency, it was open to the Victorian Government to consider mandatory standards
- DP World's decision runs counter to our commitment to pricing transparency, and points clearly to the need for the new standards that the Victorian government is developing.
- DP World has been asked to explain the rationale for the price increase they have announced, and have raised my concerns with the timing of the announcement during the COVID-19 crisis and so soon after the last increase in these charges.
FTA / APSA COMMENTARY
Precedent would suggest that DP World will ignore any state government waning and will proceed with price increases scheduled for Melbourne and *Brisbane on 1 May 2020 and Port Botany on 8 May 2020 -
*FTA / APSA has also exchanged correspondence with the Hon Mark Bailey - Minister for Transport and Main Roads (Queensland).
It will be a big call for DP World to again snub state governments warnings at time where state governments are clearly rallying to give essential support to Australian exporters and importers.
FTA / APSA ADVOCACY POSITION
FTA / APSA is reminding regulators of our ongoing advocacy position in anticipation that state governments will introduce mandatory standards pertaining to port pricing,
While clearly an improvement on the current unregulated regime, a statutory monitoring process to oversee further price increases is NOT the answer. Incremental increases on an already high base of stevedore charges would continue the devastating impacts on Australian trade.
Our regulators need to protect shippers by forcing stevedores to cease this practice.
Stevedores should be given appropriate notice to allow negotiations of charges with shipping lines. This outcome would allow market forces to take effect leaving an open and competitive environment to determine appropriate price for services without the need for further government monitoring or intervention. |
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