PEAK TRADE BODIES CALL FOR A NEW FEDERAL REGULATOR

Saturday, May 1, 2021

FTA_Submission_Submission to the Productivity Commission on behalf of Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA).pdf
MEDIA RELEASE - PEAK TRADE BODIES CALL FOR A NEW FEDERAL REGULATOR.pdf

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have incorporated extensive member feedback into a detailed submission in response to the Productivity Commission's 'Inquiry into Vulnerable Supply Chains'.

SUBMISSION

MEDIA RELEASE

SUMMARY OF RECOMMENDATIONS

FTA / APSA see the need for the creation of a new federal regulator, along the lines of the US Federal Maritime Commission (FMC), to facilitate open and competitive international trade while safeguarding the interests of Australian shippers (exporters, importers and freight forwarders).
Recommendations 1, 2, 3, 4 are symptomatic of a larger issue, where key decisions are now being made offshore by foreign owned shipping lines, with inadequate controls, understanding, or oversight, from relevant Australian regulators, despite our vulnerable supply chains being highly dependent on containerised shipping line services.
RECOMMENDATION 1 (shipping competition review) – the Australian Competition and Consumer Commission (ACCC) to progress its review to establish shipping competition policy and associated regulatory framework to: 1) ensure vessel sharing consortia can continue with qualified exemption from normal competition rules administered in Australian commerce; and 2) monitor the appropriateness of shipping line (and contracted stevedore / empty container park) surcharges, fees and penalties.

RECOMMENDATION 2 (minimum service levels and notification periods) – repeal of Part X of the Competition and Consumer Act 2010 to be contingent on the introduction of an appropriate regulatory framework that provides exporters, importers and freight forwarders minimum service levels and minimum notification periods.
 
RECOMMENDATION 3 (regulation of Terminal Access Charges) – the scope of the National Transport Commission (NTC) review of Terminal Access Charges be expanded to examine the potential of regulation to force stevedores (and empty container parks) to cost recover directly against their commercial client (shipping line) rather than via third party transport operators.
 
RECOMMENDATION 4 (regulation of container detention practices) – the need for federal government action and potential regulation, similar to US Federal Maritime Commission (FMC), to ensure reasonable container detention policies are administered.
 
RECOMMENDATION 5 (waterfront industrial relations reform) – the Federal Government to initiate a formal waterfront industrial relations review to provide immediate and continued business continuity for what is an 'essential service' and our international gateway for major supply chains.
 
RECOMMENDATION 6 (implementation of Biosecurity reform priorities) – ongoing engagement and reporting between the Department of Agriculture, Water and the Environment and industry to achieve the four reform priorities identified in the Inspector -General of Biosecurity (IGB) report Adequacy of department's operational model to effectively mitigate biosecurity risks in evolving risk and business environments being 1) Regulatory maturity; 2) Risk pathway partnership; 3) Frontline focus; and 4) Sustainable funding model.
 
RECOMMENDATION 7 (extension of IFAM funding) – the Federal Government should allocate additional funds to maintain the International Freight Assistance Mechanism (IFAM) and / or similar financial relief measures to support the air cargo supply chain sector until the end of 2023 (at minimum), with actual allocation of funds subject to periodic reviews pending the return of international passenger flight services.

Paul Zalai -  Director, FTA / Secretariat, APSA