Stock and Land - Port of Melbourne dispute adding hundreds of dollars to export costs

Implications of the failed bargaining between DP World and the union was highlighted in a detailed article referencing APSA member Mark Lewis from Riordan Grains (cost to grain exporters through Melbourne) and FTA / APSA.

QUOTE:

"Shipping lines are charging additional fees due to the industrial action and are not able to help mitigate delays by offering alternate services, particularly to Asian destinations," he said.

"The lack of predictability of shipping schedule is also seeing many exporters, who rail from regional centres direct to the wharves, now moving and storing their loaded containers at nearby port facilities."

This was adding transit delays, double-handling costs and additional truck movements, Mr Zalai said.

"Trains often operate on a 'take or pay' method, meaning you either use the slot or pay for it anyway," he said.

"The decision for our regional exporters then becomes whether to double handle the container at the port and pay for storage or pay for the empty train slot and rail it again the following week."

Mr Zalai said the FTA had not yet had a response from the federal government.

He said members were "hammering" the FTA, letting it know the impact of the dispute.

"We just want the issue resolved," he said.

"We are not siding with the unions, or the employer, we just need business continuity and to have our wharves open.

"The government is very proud to talk about free trade agreements, trade liberalisation and having a better relationship with China, which is all fantastic and very important, but I think it counts for nothing if we can't get our boxes (containers) on and off ships."

Stock and Land - Port of Melbourne dispute adding hundreds of dollars to export costs