In 2020, the shipping container supply chain has experienced intense challenges including the effects of bushfires, COVID-19, extreme weather and protected industrial action on the waterfront. In an effort to identify industry-led voluntary measures to improve the efficiency and resilience of the empty container supply chain, the Port Transport and Logistics Taskforce (PTLT) formed the Empty Container Working Group (ECWG) subcommittee. The ECWG is composed of representatives of all stakeholders in the empty container supply chain including shipping lines, stevedores, empty container parks, transport operators and cargo owners.
The ECWG has explored a number of initiatives including:
· increasing data sharing across the empty container supply chain
· increased use of electronic delivery orders
· amending the Three Ports SEPP to increase container stacking heights in the port lease area
· facilitating discussions between empty container supply chain members to improve evacuation rates and empty container storage capacity
· extending empty container park operating hours to maximise efficiency
· increasing booking window adherence for deliveries to empty container parks to reduce congestion
· improving the use of direct return empty capacity
· investigating alternative empty container storage facilities in Greater Sydney.
The ongoing response of industry to these challenges has been truly remarkable. Despite an unprecedented surplus of empty containers in Sydney, operators have worked hard to ensure that supply chains for essential goods and services continue to function.
Record numbers of empty containers have been exported from Port Botany in recent months. Shipping lines and stevedores are continuing to maximise evacuation of empty containers from Sydney. Some of these outcomes include:
· a shipping line reported reducing its inventory of empty containers from 13,000 to 5000 TEUs
· another reducing its inventory of empty containers from 25,000 to 16,000 TEUs
· a third shipping line has completely evacuated its empty container stock out of NSW
· shipping lines are diverting vessels from normal schedules to dock at Port Botany to evacuate empty containers
· shipping lines and stevedores working together to maximise container exchanges with a focus on evacuating empty containers.
It is expected that these increased efforts by shipping lines and stevedores will assist in significantly reducing the backlog of surplus empty containers at Port Botany.
The ECWG was established at an extremely challenging time, yet progress has been made in a number of areas. Members of the ECWG are currently volunteering time to better understand the empty container supply chain problem and to implement solutions that improve efficiency and resilience in the supply chain.
Work will continue in these areas in the new year. Transport for NSW greatly appreciates the efforts made by industry to engage through the ECWG.
The next meeting of the ECWG is scheduled for Thursday 14 January 2021.
Please contact us if you have any questions via freight@transport.nsw.gov.au.
Regards
Susie Harwood
Executive Director Freight
Customer Strategy and Technology
Transport for NSW