FTA / APSA ADVOCACY ACKNOWLEDGED
As outlined in our previous commentaries, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) welcomed the Australian Competition and Consumer Commission (ACCC) Container stevedoring monitoring report 2019-20 (released on 4 November 2020) that clearly supports our advocacy addressing the need for reform to stevedore-imposed Infrastructure Surcharges / Terminal Access Charges (TACs).
A NATIONALLY COORDINATED APPROACH
A key finding in the report states "The ACCC is concerned that the benefits of greater competition between stevedores to provide services to shipping lines will be eroded by increasing TACs, although any regulation of these charges is a matter for state and territory governments".
This key finding aligns to that of the Deputy Prime Minister in his response to the FTA/APSA formal submission titled Status report - Container Stevedore Imposition of Terminal Access Charges. The Deputy PM made the following points: - support for our advocacy, noting the operational and cost implications for exporters and importers caused by Infrastructure Surcharges;
- acknowledgement of our positive engagement on broader freight and trade policy matters during COVID-19;
- clear articulation that stevedore pricing reform is a state government responsibility (negating arguments from the states pointing back to the Federal Govt to lead); and
- reference to the ACCC to ensure that stevedores involved vertical integration operations do so on a 'level playing field' with others in the supply chain and do not use Terminal Access Charges for commercial advantage / offset pricing.
In recent weeks, FTA / APSA has subsequently written to state ministers making reference to key findings of the ACCC report and reiterating our position that stevedores should be forced to either absorb operating costs or pass these on to their commercial client (shipping lines). This outcome would give shipping lines the choice to absorb costs or pass these onto shippers (exporters, importers and freight forwarders) through negotiated freight rates and associated charges.
Please refer below to related correspondence::
The Hon Mark Bailey MP (Minister for Transport & Main Roads – QLD)
The Hon Andrew Constance MP (Minister for Transport and Roads – NSW)
The Hon. Melissa Horne MP (Minister for Ports and Freight – VIC)
The Hon Alannah Mac Tiernan MLC (Minister for Regional Development; Agriculture and Food; Ports – WA)
In what is a positive development, FTA/APSA yesterday received formal advice that the state governments have agreed to engage with industry to provide a national approach to the matter.
As determined at the Ministers at the Infrastructure and Transport Ministers meeting held on Friday 20 November (refer to the 14th Infrastructure and Transport Ministers Meeting Communique), the National Transport Commission (NTC) will lead reform and the development of 'voluntary national guidelines' to apply to stevedore infrastructure and access charges (both their introduction and increase) at Australia's container ports.
The aim of this approach is to provide greater certainty and transparency for both stevedores and landside transport operators and support continued investment in terminal facilities.
FTA/ APSA ADVOCACY RESPONSE
While we look forward to engagement with the NTC, FTA / APSA remain sceptical as to whether a 'voluntary' arrangement will adequately protect the interest of the international trade sector and will continue advocacy with state governments that regulation is required to wind back and eradicate Infrastructure Surcharges.
In parallel to collaboration with the NTC, and in response from outcomes of the APSA Committee of Management meeting held yesterday afternoon, FTA/APSA will also take a renewed focus on Terminal Handling Charges (THCs) administered by shipping lines, being a bundled fee incorporating charges from port authorities and stevedore fees.
While the ACCC report clearly shows that stevedore charges to shipping lines are declining (with an offset by an increase in Infrastructure Surcharges), feedback from members are that these savings are not being passed on by shipping lines with a commensurate reduction in THC. |
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