Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) is starting the new year the same way we finished 2023, by continuing to lead 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, this exposure is essential to increase public awareness of the cause of increased costs and delays for international trade.

Over the last few weeks, it is the Red Sea hostilities that is particularly capturing the media's attention. This is likely to continue for some time with overnight news that Maersk is again pausing all transits through the Red Sea / Gulf of Aden until further notice.

While making ongoing commentaries on the Red Sea / Suez disruption, FTA / APSA have been successful in also drawing attention to domestic issues affecting international trade and the need for reliable and controlled cost trade gateways at Australian stevedore operations.

28 DEC 2023 : Australian Business Journal - Global Trade Faces Uncertainty as Global Trade Faces Uncertainty as Red Sea Tensions and Port Strikes Threaten Supply Chains
27 DEC 2023 : SMH: Send navy to the Red Sea for sake of local economy: Dutton
27 DEC 2023 : News.com.au - Price hike fears over Red Sea shipping chaos, crippling port strikes
27 DEC 2023 : The Australian - Price hike fears over Red Sea shipping chaos, crippling port strikes
21 DEC 2023 : The Australian - Red Sea call 'leaving our allies in the lurch'
19 DEC 2023 : Stock and Land - Red Sea freight blockage has potential to disrupt all supply chains
19 DEC 2023 : Australian Financial Review - Freight, oil climb as Red Sea attacks shut down shipping
17 DEC 2023 : ABC News - UK and US shoot down more Houthi drones in the Red Sea as shipping companies pause operations

We are pleased to advise that we received further coverage overnight weaving in commentary about the Red Sea and the PIA in The Australian Financial Review and The Australian.

The Australian Financial Review : Industrial action at ports 'bigger problem' than Red Sea attacks

EXTRACT:

Freight and Trade Alliance director Paul Zalai estimates industrial action taken by maritime unions in Australia against stevedore DP World is costing the local economy about $20 million per day.

"The Red Sea is significant, and it's causing a lot of concerns, but ultimately industry will adapt to it ... The bigger problem is what's happening here, the implications for both importers and probably even more so for exporters is quite devastating," he said.

"It's all going to translate to increasing costs, cascading down the supply chain and ultimately to consumers."

Strikes and work bans at ports across Australia have been ongoing since early October, leading to a backlog of tens of thousands of containers and causing weeks-long delays.

The Red Sea dispute would only compound problems being faced by those working to import white goods, furniture, pharmaceuticals and food, Mr Zalai said.

Australian export commodities are also being stranded, with some ships so delayed they are forced to "cut and run", dropping their imports and departing before they can load local products to catch up to international sailing schedules.

"This is having a devastating impact on producers, especially those with current and emerging seasonal peaks such as grapes and other horticultural products," Mr Zalai said.

The Australian : Australian trade flowing from Asia is safe but eventually Red Sea disruptions will hit home

EXTRACT:

There are delays of between and 10 and 14 days with vessels going around the Cape of Good Hope rather than the Suez Canal and Red Sea … and it's a bit of moving story at the moment," Freight and Trade Alliance director Paul Zalai told The Australian.

"And in terms of Australia, it depends what commodities you are importing or exporting, and if you are dependent on Italian leather lounges or exotic French cheeses out of Europe you are going to be experiencing those delays.

"So for those products coming out of the Mediterranean and European ports there will be significant delays and extra costs and this will have a knock on effect."

Mr Zalai said many importers could also start to horde products and keep higher supplies at hand, as opposed to the normal ''just in time' supply at hand, to see local warehouses fill up and warehouse space could become scarce, and therefore more expensive for companies - which would likely be passed on down the line to customers.

MEMBER FEEDBACK

We again wish to remind members that while we have an excellent relationship with a wide cross-section of trade, agriculture and mainstream media, we 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

The Australian Financial Review : Industrial action at ports ‘bigger problem’ than Red Sea attacks