CTAA e-News 18th November 2019

Monday, November 18, 2019

CTAA eNews - 18 November 2019


This CTAA e-News is sponsored by CTAA Alliance Partner: AEI Transport Insurance

AEI has produced a neat GLOVE-BOX ACCIDENT GUIDE, to prompt heavy vehicle drivers on what to do, and what to record, in case of an accident.

 Download a copy of the GUIDE: 
Here
Stevedore Infrastructure Charges - Advocacy

DP World Terminal Access Charges and VBS Fee Increases:

DP World has announced significant stevedore infrastructure fee increases (now dubbed "terminal access charges") and a Vehicle Booking System (VBS) fees hike (up 40%) for commencement from 1 January 2020 in all ports.

This includes a 447% increase to terminal access charges in one fell-swoop in the Port of Fremantle, despite DP World not having finalised lease negotiations with the State-owned port authority, Fremantle Ports.

This unilateral decision while lease negotiations are ongoing should be incentive enough for the WA Government to swiftly regulate these unfettered costs.


Read More

Update on Advocacy:

CTAA has been working very closely and jointly with Freight & Trade Alliance (freight forwarders) and the Australian Peak Shippers Association (exporters and importers) to ramp up advocacy efforts seeking regulatory intervention.

The most up-to-date summary of these efforts across Australia can be found:  
Here

Commentary:

While transport operators foot the stevedores' bills initially (and carry the significant cash-flow burden & risk), ultimately the cargo interests are now paying twice for the same stevedoring services:
  • Once as stevedore infrastructure fees (terminal access charges) are passed through; and;
     
  • Again for the same services through high foreign shipping line imposed port fees / terminal handling charges (THCs).  These port fees have remained high despite shipping lines having enjoyed a 40% reduction in stevedoring charges (on average) for terminal lifts since 2009/10 (ACCC Container Stevedoring Monitoring Report 2018/2019).
Will any State Government act, or even eventually the Federal Government?

The answer is still very unclear, despite the massive, unfettered stevedoring fee increases since 2017.

For instance, the landslide fees in Melbourne will have increased by over 2,800% in two years once the DP World fee hike occurs in January 2020..  Meanwhile foreign shipping line port fees / THCs levied on Australian importers & exporters remain very high.


What is clear though is that the landside logistics landscape, environment, and viability is being irrevocably affected by these, and other imposed external price shocks.  As a result, some export commodities are being marginalised to the point of no return.

Less cargo in the future will mean less revenue for stevedores and shipping lines ... and the proverbial drainage down the sink-hole of Australian containerised export viability could accelerate.
ACCC Container Stevedoring Monitoring Report 2018/19

The first few lines of the ACCC Media Release accompanying the latest ACCC Container Stevedoring Monitoring Report (2018/19) says it all:  

"Higher infrastructure charges imposed on truck and rail operators at ports helped the container stevedoring industry increase average revenue per container lift for the first time in seven years, according to the (Report).

Revenues generated by the infrastructure charges rose by 63 per cent in 2018-19 on the previous year, the report shows. These revenues helped to offset an 8.1 per cent decline in average quayside revenue because of competition between stevedores and increasing bargaining power of the shipping lines."


Read More & Download Report

NTI Marine Project - CTAA Port Supply Chain Awareness Workshops

CTAA has been pleased to be working with NTI Limited to raise the awareness of NTI staff and their insurance broker network across Australia about container transport logistics.

We've conducted our unique Awareness Workshops in Sydney, Adelaide, and Fremantle exclusively for NTI, with Brisbane and Melbourne to come this week and next week.

We've had tremendous feedback, and hope that the marine and transport insurance brokers who have participated now have a greater understanding of container logistics operations through Australia's container ports.


Read More on NTI Marine Project
BITRE "Waterline" Report No. 63

Together with the annual ACCC Container Stevedoring Monitoring Report (see above), the "Waterline" Report series compiled by the Federal Bureau of Infrastructure, Transport & Regional Economics (BITRE) provides a useful snapshot and statistics on container stevedoring and container landside logistics.

BITRE Waterline No. 63 (Oct 2019) provides the latest statistics on quayline and landside container logistics productivity and costs.


Read More
Biosecurity Treatment Conditions - DAWR Sessions

DAWR is hosting a series of industry information sessions to advise treatment providers (specifically methyl bromide and sulfuryl fluoride fumigators, and heat treatment operators) as well as any other interested stakeholders on:

  • complying with the department's treatment methodologies  
  • how to avoid non-compliance
  • new approved arrangement (AA) conditions
  • Brown marmorated stink bug (BMSB) specific treatment requirements
CityDateTimeLocation
SydneyThursday 21 November1.00 pm – 4.00 pmNovotel Sydney Airport (previously Mercure Sydney Airport)
MelbourneFriday 22 November9.00 am – 12.00 pmMantra Tullamarine Hotel
AdelaideMonday 25 November1.00 pm – 4.00 pmThe Lakes Resort Hotel
PerthTuesday 26 November7:30 am – 10:30 amCrown Perth Convention Centre
BrisbaneWednesday 27 November8:00 am – 11.00 amNovotel Brisbane Airport Hotel

Read More & Register to Attend Here
Secon Freight Logistics Turns 50!!

Valued CTAA Alliance company, Secon Freight Logistics, held a wonderful dinner on 29 October to celebrate its 50th Anniversary.

Founder, Maurie Considine, together with MD, Brendon Considine and CEO, Steve Nailer, recounted the past, present and bright future for this progressive container logistics company.   

The key word of the night was "happiness".  Steve Nailer said "we are reshaping our business strategy and culture by ensuring everyone in our supply chain is happy – be that your customer's dock manager, your staff or anyone in the community."

This new era for Secon started as the dream of Terry Considine, who was Secon's CEO until he suddenly passed away in 2014.

"It was Terry's dream, and we are now living his legacy," Brendon Considine said.

"Watching this become reality is my dream."

The event closed by officially launching It's In Our Blood, Maurie Considine's memoir of the ups and downs of his time building the Secon business.

  • 2050 Port of Melbourne Development Strategy - The Port of Melbourne has released its 30-year Port Development Strategy 2050; a roadmap for the future development of the Port.

    Butler Freight Services MD, Adam Arkinstall, represented CTAA at an industry briefing.  The Strategy is now open for public comment. 
  • Link WA - With a vision to be a best practice freight and logistics precinct, the Cities of Belmont, Canning, Kalamunda and Swan in Perth, WA, have formed a four member council alliance named Link WA.
  • National Freight Data Hub - A Freight Data Hub discussion paper has been released by the Federal Department of Infrastructure, Transport, Cities, and Regional Development seeking input into the design of the Hub.
  • National Heavy Vehicle Charging Pilot - The Federal Department of Infrastructure, Transport, Cities and Regional Development is gearing up for a large-scale heavy vehicle charging pilot commencing in 2020, to test potential direct user charging options for heavy vehicles.
Container Transport Alliance Australia (CTAA) is strong Alliance of leading businesses engaged in the container transport logistics industry.

CTAA Alliance companies account for the majority of containerised freight handled in capital city ports in Australia.


Visit our website: Here or consider joining? - ask us Here