Though transport has gained some clarity, FTA/APSA highlights that the financial and operational burden remains, not least on the trading companies and shippers "who ultimately pay the bills".
"A monitoring process to oversee further price increases is NOT the answer – a sentiment that FTA / APSA has consistently expressed in dealings with the Victorian government, departmental representatives, consultants and the Minister herself," FTA director Paul Zalai says in a message to members.
"The VPPM will mean that stevedores will continue to receive revenue from the transport sector rather than their commercial client (shipping line) with the net result of simply adding another level of bureaucracy.
"You do not have to be Nostradamus to see that empty container parks will also continue ratcheting up their charges on transport operators too – and why not?
"Stevedores have highlighted that it is a very effective model to collect revenue from parties other than your commercial client. An approach now apparently accepted by the Victorian government.
"As for transport operators, yes there are significant cash flow issues.
"Most also add a margin (understandably as it is probably necessary to survive) resulting in further cascading costs through the supply chain ultimately leading to inflated costs to shippers.
"FTA / APSA has overnight and again this morning sought more detail from the Victorian government on this development and will provide further comment once detail comes to hand."
Meanwhile, Zalai's organisations are seeking more traction federally.
He tells members a Status Report – Container Stevedore Imposition of Terminal Access Charges has been presented to Land Transport and Maritime Industry forum chaired by federal infrastructure and transport minister Michael McCormack yesterday.
The Status Report "highlights the fact that all businesses face a dilemma of how to deal with unavoidable costs such as rent, infrastructure, labour and power.
"Those same businesses are then forced to either absorb costs or pass them on to their commercial clients.
"Similarly, stevedores should be forced to either absorb operating costs or pass these on to their commercial client (shipping lines).
"Shipping lines then have the choice to absorb costs or pass these onto shippers (exporters, importers and freight forwarders) through negotiated freight rates and associated charges."
The Status Report, which "clearly articulates that a statutory monitoring process to oversee further price increases is not the answer" and argues that "incremental increases on an already high base would continue the devastating impacts on Australian jobs", makes two recommendations:
- regulation to protect transport operators and shippers by forcing stevedores to cease the practice of administering a Terminal Access Charge
- stevedores should be given appropriate notice to adjust commercial modelling allowing negotiations of charges back to shipping lines.