CONTAINER DETENTION
Further to our notice titled OMICRON IMPACTS ON LOGISTICS - Safety, new surcharges, the recent weather events and impacts on logistics operations has escalated the concern that foreign owned shipping lines, already proudly reporting multi-billion dollar profits, will cash in on detention penalties caused by delays in returning empty containers.
In particular, we are seeing delays in container releases that are subject to biosecurity measures with many approved arrangement facilities at capacity with limited operational staff to deal with volumes. We have seen a number of cases where there is an inability to obtain BMSB verification inspections for 4-6 weeks. In such scenarios, and to avoid container detention penalties potentially tallying to tens of thousands of dollars, we suggest that members contact Seasonal Pests Policy (SPP@awe.gov.au) and request if they can provide alternative solutions.
We also note that many transport companies have put members on notice that regardless of the reason for any detention, cartage contractors will not accept any responsibility for any cost and charges. Whilst this is an understandable statement from transport operators, this would need to be tested in line with agreed terms and conditions between the affected parties.
In the current operating environment there will no doubt be many scenarios whereby the delay in returning empty containers within prescribed timeframes cannot be avoided. One such scenario, received from members and outlined above relates to 'vessel bunching' which causes excessive amounts of containers needing to be cleared from the terminals prior to the three (3) day free time expiring.
This also creates a backlog at importers yards trying to unpack multiple containers and have them returned to the empty container parks (also under pressure) to avoid shipping line detention (initiated in some cases seven (7) days after discharge - NOT availability).
FTA have written to major shipping lines with all refusing our request for a blanket extension of detention free days. Most conceded they will assess the quantum of penalties on a 'case by case' basis. In some cases they have advised the problems are outside their control, while others have advised to apply for extra free time at origin.
NB: the problem is also outside the control of the transport operator / importer when vessels are delayed and arrive on top of each other.
FTA encourage members to take up the offer of shipping lines to raise concerns and to document these scenarios. Whilst we acknowledge that this will cause an extra burden on your staff to create correspondence and maintain logs of delays etc, (not too mention extra work for shipping lines in having to manage such requests) it is necessary as all approaches to the shipping lines to create short term blanket extensions have failed, and no doubt their bottom line will continue to improve.
Reform is required, and will be addressed in our ongoing engagement with State governments, the National Transport Commission (NTC) and has formed a key element of our submission to the Productivity Commission.
Let's hope we can report a good news story in the weeks ahead of safe, fair and collaborative operational practices during these extreme times. |