FTA / APSA expose unfair DP World fee increases - rubbing salt into wounds of our trade sector : MEDIA UPDATE 16

Monday, January 15, 2024

There has been considerable media commentary focussed on the 8% workers' claim, year on year for three years, as a key component of the ongoing industrial dispute between DP World and the Maritime Union of Australia (MUA).

While leaving any commentary about the appropriateness of this increase to others, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have taken the opportunity to expose a much higher percentage increase - notably the DP World landside charge increases from 1 February 2024, with Terminal Access Charges (TACs) increasing by amounts of up to 52%.

FTA and APSA will continue to expose the DP World refusal of our request to waive TACs as a form of compensation until the Protected Industrial Action is resolved, noting that our plea made last week was also declined where we called for at least a deferment of the exorbitant increases.

Thank you to the The Australian Financial Review for exposing this unfair practice.
 
Australian Financial Review - PM should 'pick the phone up' to fix ports dispute: Dutton [13 January 2024]


EXTRACT:

Meanwhile, exporters and importers have accused DP World of unfairly targeting them with fee increases of up to 50 per cent from February 1, adding to goods prices and inflation, and hurting local firms.

The Freight & Trade Alliance – the peak association for importers and exporters and the freight forwarding sector – accused the company of unfairly pushing costs onto local traders via big increases in how much port users must pay to access facilities, known as a terminal access charge.

...  
Citing DP World's claim its industrial dispute with the MUA was costing the economy $84 million a week FTA director Paul Zalai said the fee increases were "rubbing salt into the wound".

"The magnitude of the increases are staggering, and in what is a real kick in the guts, they inexplicably have targeted Australian exporters with the largest increase," he said.

"We have pleaded with DP World to waive these charges as a form of relief until the industrial action is resolved – this was declined, as too was a request to at least consider a deferment of the increase to a later date."

... 
The Australian Competition and Consumer Commission last year found that "industry profit margins remained near historical highs in 2022–23", and there was a "lack of predictability" around charge changes, prompting Mr Zalai to call on the government to intervene and better regulate the sector.

The Productivity Commission, which released a report reviewing Australia's maritime logistics in January last year, recommended Treasury regulate fees and call in the ACCC to enforce them, a move backed by the alliance.

"We now more than ever need a level of well-considered regulation to safeguard the commercial viability of our exporters and to control spiralling costs of imports," Mr Zalai said.

While it was reasonable for stevedore firms to recover costs, that was increasingly being done through uncontestable land-side charges, rather than being imposed on the large multinational shipping companies.


The LoadStar -  Dispute at Australian ports heats up, leading to threat of 'lockouts' [12 January 2024]

EXTRACT:

"The escalation of the action from both parties is alarming, and it appears we are rapidly heading towards a lockout of workers," said Paul Zalai, director of the Freight & Trade Alliance. 

"This would be a high-risk strategy; we have a waterfront that will potentially explode, and the government is nowhere to be seen." 


12 JAN 2024 2GB Sydney - Neil Breen interviewed Paul Zalai
12 JAN 2024 : ABC Sydney - Suzanne Hill interviewed Paul Zalai
11 JAN 2024 ABC Country Hour - Angus Verley interviewed Nicolaj Noes (DP World) and Paul Zalai (FTA/APSA)
10 JAN 2024 : Stock and Land - Port of Melbourne dispute adding hundreds of dollars to export costs 
10 JAN 2024 Channel 7 Sunrise - Mark Beretta OAM interviews Paul Zalai (FTA / APSA)
10 JAN 2024 Journal of Commerce - Australian shippers face worsening delays from DP World-dockworkers dispute 
9 JAN 2024 : Daily Cargo News - MORE MUA PIA, DPW CALLS FOR GOVT INTERVENTION 
9 JAN 2024 : Farm Weekly Ongoing wharf dispute is resulting in multi-million dollar costs
8 JAN 2024 : Australian Financial Review - DP World to dock pay in escalation of waterfront battle
8 JAN 2024 : Triple M Network, SBS and Channel 10 - Industrial dispute impacts on small business
5 JAN 2024 : Australian Financial Review - Australian grape growers fear export hit from port dispute
5 JAN 2024 Sydney Morning Herald - Shoppers warned to expect empty shelves, delays if ports strike continues 
4 JAN 2024 : Australian Financial Review : Australian grape growers fear export hit from port dispute
4 JAN 2024 : ABC Radio National - Breakfast - Australia"s response to Houthi attacks on shipping in the Red Sea 
4 JAN 2024 : SBS - Disruption to trade is threatening innocent lives
3 JAN 2024 : 2GB Sydney - Red Sea conflict having impact on Australian trade
2 JAN 2024 : The Australian Financial Review : Industrial action at ports 'bigger problem' than Red Sea attacks
2 JAN 2024 : The Australian : Australian trade flowing from Asia is safe but eventually Red Sea disruptions will hit home
28 DEC 2023 : The Australian Business Journal - Global Trade Faces Uncertainty as Red Sea Tensions and Port Strikes Threaten Supply Chains
27 DEC 2023 : SMH: Send navy to the Red Sea for sake of local economy: Dutton
27 DEC 2023 : News.com.au - Price hike fears over Red Sea shipping chaos, crippling port strikes
27 DEC 2023 : The Australian - Price hike fears over Red Sea shipping chaos, crippling port strikes
21 DEC 2023 : The Australian - Red Sea call 'leaving our allies in the lurch' 
19 DEC 2023 : Stock and Land - Red Sea freight blockage has potential to disrupt all supply chains
19 DEC 2023 : Australian Financial Review - Freight, oil climb as Red Sea attacks shut down shipping 
17 DEC 2023 ABC News - UK and US shoot down more Houthi drones in the Red Sea as shipping companies pause operations

Paul Zalai - Director FTA | Secretariat APSA | Director GSF