The Land - Rural exporters plea for help as Port Botany dispute hurts trade

The Australian Peak Shippers Association chief executive Paul Zalai sent a letter to Patrick today, obtained by The Land, outlining its concern the dispute should be resolved as soon as possible.

"Vessels are now by-passing Port Botany, discharging goods interstate and leaving importers to organise and pay significant logistics costs to move freight across state borders back to Sydney; and . delays in cargo receipt are affecting 'just-in-time' orders and threaten to leave consumers short of product as we enter the peak demand retail season," Mr Zalai said.

"Those with cargo discharged in Sydney are now subject to extensive delays at the port itself and are facing 'Sydney congestion surcharges' imposed by four international shipping lines ranging from USD 285 to 300 per twenty-foot equivalent unit (TEU);

"We understand that these surcharges have been initiated to cover operating costs including $25,000 per day for vessels waiting offshore to berth.

"These surcharges have been implemented without any consultation and with insufficient lead times negating the ability for importers and exporters to factor in 'landed costs' in contractual arrangements."

Mr Zalai said he was very concerned at the damage the dispute will do to rural industries.

"A major blow is that the new congestion surcharges significantly reduces (and in some cases eliminates) margins, crushing the ongoing commercial viability for many reliant on international export revenue; and . adding salt to the wounds are the cascading costs for waiting times for trains, staged storage of containers and related logistics costs directly attributable to the port congestion."