AFR - Victorias epic battle to keep supply chains open

Saturday, August 8, 2020
Australian Financial Review (Jenny Wiggins and Simon Evans).

https://www.afr.com/companies/infrastructure/victoria-s-epic-battle-to-keep-supply-chains-open-20200807-p55jhe

EXTRACT

Importers and exporters of freight that manage depots at ports are also still agitating for more easing of restrictions.

"We understand and fully support the need for drastic measures to safeguard the community, however the restrictions to warehousing operations are making it impossible to maintain supply chains," said Paul Zalai, director of the Freight & Trade Alliance.

"While the government is rightly encouraging home deliveries and 'click and collect' services, they really need to understand that you can't keep e-commerce going without maintaining the requirement of staff to meet demand to pick, pack, label and ultimately deliver."

Importers and exporters met with government this week asking for an exemption to the two-thirds warehousing rule but were told they must comply with the requirement and were also informed that stringent audit, enforcement and penalty provisions applied, Mr Zalai said.

Neil Chambers, director of Container Transport Alliance Australia, said warehouses in the container transport logistics supply chain had low staff numbers relative to their size because they were used as temporary 'in-transit' storage before goods were delivered to distribution centres or customers' premises.

Container and transport logistics groups want warehouses with low staffing levels to be exempt from reducing employee numbers further.

Cutting back numbers of employees in lean warehousing operations may have unintended occupational, health and safety implications, Mr Chambers said.