EVIDENCE - UNFAIR CONTAINER DETENTION PRACTICES

As outlined in recent member updates, ongoing container congestion exists across landside supply chain operations nationally – refer

• Operational update - Depots remain congested;
• OMICRON IMPACTS ON LOGISTICS - Safety, new surcharges; and
• Operational impacts from catastrophic weather events.

Adding to the angst are the escalating delays in inspection bookings by the Department of Agriculture, Water and the Environment.

CONTAINER DETENTION
 
The consistent theme we hear from members is that foreign owned shipping lines are paying little regard to the current operational environment and are strictly applying detention charges for the late dehire (return) of empty containers.
 
Those shipping lines that have responded to our suggestion of a blanket extension have declined the proposal with most claiming that they will review the quantum of the penalty administered on a 'case by case' basis.
 
PRODUCTIVITY COMMISSION
 
As members will recall, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) made a joint submission to the  Productivity Commission review of Australia's maritime system - one of the eight recommendations being:
 
RECOMMENDATION 5 (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.
 
Through our ongoing advocacy, a rare opportunity currently exists to provide further evidence of unfair container detention practices.
 
The Productivity Commission will be making a final report to Federal Government in August 2022. In the interim, a draft report will be prepared by late May 2022.
 
We encourage members to take the time to document instances of container detention penalties, specifically efforts made to obtain relief and the associated shipping line response.
 
Please send details to Tony Vinson (Head of International Freight and Logistics – FTA/APSA) at avinson@FTAlliance.com.au by Friday 29 April 2022.

Paul Zalai - Director FTA | Secretariat APSA | Director GSF