Freight & Trade Alliance (FTA) met with Qube Logistics executives yesterday, Monday 11 September 2017, to discuss the introduction of the International Terminal Fee (ITF).
It was explained that FTA and the Australian Peak Shippers Association (APSA) have a high priority focus on removing the rapidly increasing trend towards surcharges on third party / non-contracted stakeholders.
As outlined in the attached customer notice, Qube Logistics again reiterated the need to recover increasing operational costs. FTA argued that like most commercial entities, costs need to be absorbed or passed on to commercial clients, in this case being cargo wholesalers and direct freight forwarder clients. FTA provided member feedback that fallout from the introduction of this arbitrary surcharge may lead to business being taken away from Qube Logistics.
Qube Logistics acknowledged the issues raised but showed no indication that they would deviate away from this cost recovery model. It appears as though they are prepared to "weather the storm" of criticism and proceed as planned with their implementation on 9 October 2017 with a $33 (incl GST) ITF at their Brisbane, Sydney, Melbourne, Adelaide and Fremantle operations.
Other issues
During the course of the meeting, the following issues discussed:
Qube Logistics stated that their own transport and direct customers will also be subject to the $33 ITF. Qube Logistics denied that there will be any anti-competitive behaviour and that competing customs brokers and freight forwarders will not be at a commercial disadvantage;
Charges will be charged at the lowest level house bill. If a transport operator arrives to collect 5 consignments, payment will be required to cover 5 X $33;
To avoid gate congestion issues, "Cargo Owners" and / or transport providers can establish an account. Early indications from Qube Logistics are that some freight forwarders are taking the account option to avoid being the recipient of administrative surcharges likely to be charged by transport operators. Other than account, credit card and cheques will be accepted at the time of cargo collection. EFT is not an option at this stage; and
Preliminary discussion commenced on the need for improved processes and the potential development of an independent booking and transport management system.
Where to from here
Unless anti-competitive practices can be proven, we are not expecting any form of relief from regulators.
While Qube Logistics are aware of industry concerns, they must have done the sums and conclude that they will be adequately compensated with a new revenue stream from the arrangements.
The onus now clearly lies with industry to respond by either accepting the charges and move on, or to take business elsewhere.
Is the latter option viable? Are there neutral wholesale services available using alternate depots? Are these depots at capacity? Is it time for independent depots nationally to come together as a consortium to provide a viable alternative?
Our fear is that rather than healthy competition entering the market, other depots will do as we have witnessed with the stevedores and simply "follow the leader" with the introduction of similar surcharges.
We certainly hope that this is not the case and would be delighted to promote any alternative solutions.
Please share your views and feedback direct to me at pzalai@FTAlliance.com.au
Paul Zalai – FTA / APSA