The Guardian - Waterfront operators’ soaring profit margins prompts concerns from competition regulator

Friday, December 15, 2023
As indicated in yesterday's member notice, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) are leading our industry's media coverage with no end in sight of the ongoing Protected Industrial Action (PIA) affecting national operations at DP World container terminals.

Following our coverage this week in the Australian Financial Review, we are grateful for yesterday's coverage in The Guardian with the reporter also seeking views on the recent Australian Competition and Consumer Commission (ACCC) Stevedore Monitoring Report.

Waterfront operators' soaring profit margins prompts concerns from competition regulator
  
EXTRACT:

Paul Zalai, the director of the Freight and Trade Alliance representing importers, exporters and other market participants, said stevedoring companies were recording landside revenues through rising terminal access charges.

"Stevedores are laughing all the way to the bank with their unregulated money tap," Zalai said.

"While it may not be collusion, it is definitely a case of follow the leader with stevedores taking turns to ratchet up the fee on transport operators who have no option but to pay to get access to container facilities."

Operations at DP World were recently disrupted by a major cyber-attack, as well as prolonged industrial action by port workers.

Zalai said that the high terminal charges set by stevedores, as well as the costs of delays linked to the industrial action, were resulting in higher consumer prices.

"These costs cascade down the supply chain, on the import side it will inflate consumer costs, and for exports, the costs will flow back to regional producers, farmers and local communities," Zalai said.

While we have an excellent relationship with a wide cross-section of trade, agriculture and mainstream media, we again remind members for the need of "real life" experiences highlighting the impacts to business and the wider economy - this is essential to maintain the momentum and interest for what appears will be a long, drawn out campaign.

Should any member or industry participant be prepared to go on the public record, please contact me at pzalai@FTAlliance.com.au on 0408 280123.

Paul Zalai - Director FTA | Secretariat APSA | Director GSF