Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have prepared the following report using practical efforts to ensure that the commentaries are accurate, generally using source intelligence and publicly available data.

COMMENTARY - CONTAINER DETENTION

There is no argument that container detention fees serve a purpose to incentivise the return of container assets to shipping lines for re-use.

The point of contention is in circumstances that are outside of the control of the shipper (importer / exporter), freight forwarder or transport operator to return containers within prescribed times, particularly if the delays are as a direct result of shipping line (or their contracted parties such as empty container parks) failing to deliver a service to meet this requirement.

The blatant disregard for fair container detention practices administered by many foreign owned shipping lines over the last few years has resulted appropriate responses in recent Productivity Commission and Australian Competition and Consumer Commission (ACCC) reports. This issue, alongside other key reform areas highlighted in the independent government commissioned reviews, now lie with the federal government to provide a formal response.

Hopefully our politicians,who are clearly working closely with the US on defence and trade matters, also have a close look at the US legislative reform agenda.

In addition to the ability to impose a civil penalty, a new rule within the Ocean Shipping Reform Act (OSRA) of 2022 requires shipping lines to refund importers and exporters for illegal overcharges and potentially for other violations of the US Shipping Act.

In an Australian context, we similarly require 1) penalties to be in place for unfair administration of container detention charges; 2) refunds to be paid by shipping lines for unfair administration of container detention charges; and 3) compensation to be paid for unfair administration of container detention charges and associated costs.

Following our recent engagement with government officials in Canberra, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) will be ramping up our advocacy on this important matter to put the spotlight on the high costs fuelling inflationary pressures throughout Australian supply chains.

Paul Zalai - Director FTA | Secretariat APSA | Director GSF

MARCH 2023 - SNAPSHOT

Drewry's composite World Container Index decreased by 2% to $1,756.83 per 40ft container as at 23 March 2023 2023.
Maersk, OOCL, Hapag Lloyd and CMA CGM have reported reduced container volumes for 2022 and are forecasting further reductions in 2023.
Import freight rates from China have hit lows and are expected to hold stable until after Chinese Labor Day - speculation exists that rates may increase with an anticipated increase of blank (cancelled) sailings to reduce supply.
Rate restoration charges are being announced for some trade lanes to maintain services.
While the larger foreign owned shipping lines have a healthy bank balance achieved via multi-billion dollar profits achieved during the pandemic, a genuine threat exists for the commercial viability of niche shipping lines.
On a global scale, a surge of new vessels will be delivered in coming months replacing aging fleets that were retained to support increased demand during the pandemic.
Vessel scrapping in the first two months of 2023 is a already double the total number of vessels scrapped in 2022.
The Port of Melbourne reported a total of 219,606 TEU in February 2023 - an 18% decline on February 2022.
Overall, port operating conditions are improving in Australia with delays for "on/off window" vessels decreasing and empty container parks less congested.
Hutchison Ports have provided a notice of intention to increase landside charges effective 22 May 2023 at both their Brisbane and Sydney stevedore operations.
The US Ocean Shipping Reform Act (OSRA) has an additional Federal Maritime Commission (FMC) Rule - in addition to a a civil penalty, a refund of a charge is payable for any breach of the Shipping Act, commission regulations or order.
Wan Hai Lines incurred at USD$950,000 fine from the US Federal Maritime Commission (FMC) as well as agreeing to refund charges in a detention and demurrage case which dates back to 2021.
World Shipping Council release details of their proposal and are seeking feedback on new global measures for the avoidance of contamination of sea containers by invasive pests and cargoes - Verified Pest Prevention (VPP) declaration.
Committees under the International Maritime Organisation (IMO) are considering proposals for some chemicals and other products that are to be added to the definition of dangerous goods.
Media coverage suggests that the IMO will increase carbon reduction targets in coming months with growing speculation that this will translate to substantial increases in BAFs paid by forwarders and shippers.
Maersk intends to wind up its Coastal Connect service in New Zealand due to ongoing supply chain disruptions.
ANL's APR Service, which connects North Queensland to South East Asia, is set to receive its second upgrade of the year with the addition of a Gladstone call.
In line with the projected increase in trade with the sub-continent, SeaLead Shipping offers a new service connecting major ports in Australia directly to India and Pakistan.

GLOBAL SHIPPERS FORUM (GSF) WORKING GROUPS

As members will recall, the Australian Peak Shippers Association (APSA) has a board presence on the Global Shippers Forum (GSF) performing an important role of representing shippers' (importers and exporters) interests and that of their national associations in Asia, Europe, North and South America, Africa and Australasia.

GSF's policy positions are determined by its Policy Council. At its most recent meeting in February 2023 the Council decided to establish new working groups to guide its work in three specific areas:

1. Container Cleanliness Working Group
2. Surcharge Suppression Working Group
3. Container Shipping Performance Working Group

Please contact Paul Zalai at pzalai@FTAlliance.com.au if you have an interest in participation in any of the above working groups

MSC - VESSEL DETENTION

FTA / APSA have today received the following commentary from MSC in response to our enquiry as to any residual operational impacts following a recent vessel detention:

MSC representatives have been meeting with the Australian Maritime Safety Authority (AMSA) during March 2023 and are collaborating closely to address the regulator's concerns about the maintenance of the container ship MSC KYMEA II.

The vessel was recently introduced to the MSC fleet and has been undergoing improvements since one of MSC's ship management companies became its operator.

MSC takes safety and environmental performance extremely seriously and is taking rapid corrective action over deficiencies. MSC will ensure that safety standards are met, both for MSC KYMEA II and for any other MSC-operated container ship that would call at an Australian port.

MSC looks forward to continuing the constructive engagement with AMSA on matters relating to the MSC KYMEA II.

INTERNATIONAL SHIPPING LINE UPDATES

Week 9 (as at 28 Feb 2023)
Week 10 (as at 7 March 2023)
Week 11 (as at 14 March 2023)
Week 12 (as at 21 March 2023)

FTA / APSA LOGIN REQUIRED

AUSTRALIAN PART X SHIPPING NOTICES

APSA is the designated peak shipper body granted status by the Federal Minister for Infrastructure and Transport under Part X of the Consumer & Competition Act to represent the interests of Australian shippers generally in relation to liner cargo shipping services. Notices have been received and are available to members' reference HERE (FTA / APSA LOGIN REQUIRED)

FTA / APSA IN THE MEDIA

13 February 2023 : The Weekly Times - Supply chain cost crunch eases with zero freight rates
17 February 2023 : The Weekly Times - Freight charges rise as cost of living bites

Tom Jensen - Head of International Freight & Logistics - FTA / APSA