Global trade disruptions and a need for legislative reform

Following the pandemic, the trade sector has faced cyber incidents, aviation security concerns, waterfront strikes (both domestically and internationally), ongoing hostilities negating access to the Red Sea, transhipment port congestion, extreme weather events and emerging geopolitical tensions.

Further high costs on the Australian trade sector are being experienced because of unfair commercial practices including spiralling charging regimes administered by stevedores and empty container parks.

It is also time to follow the lead of the European Commission to repeal legislative provisions that currently provide shipping lines exemptions from Australian competition law.

While we need to incentivise these foreign owned commercial entities to keep servicing Australian trade, we need them accountable for their practices and mechanisms in place to ensure minimum service levels prevail.

Now more than ever we require well-considered regulation to ensure market power by these entities are not exploited.

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) ministerial engagement suggests that the Container stevedoring monitoring report, to be published by the Australian Competition and Consumer Commission (ACCC) in December, holds the key as to whether the Federal Government will act on the 2022 Productivity Commission's recommendations.

We would like to acknowledge Craig Carmody (CEO, Port of Newcastle) for his insightful interview and front cover sponsorship, and Senator the Hon Don Farrell (Trade Minister) for his ongoing engagement and foreword of this edition of Across Borders.

While noting the minister's reference to trade liberalisation measures, FTA and APSA will continue to engage with all sides of politics in the lead up to next year's federal election advocating for meaningful policies to reduce supply chain costs, stimulate an economic recovery and support significant growth opportunities for Australian exporters and importers.

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