ATN - SYDNEY CONTAINER GRIDLOCK DISRUPTION SEEN SPREADING

Sunday, September 27, 2020
SOURCE: https://www.fullyloaded.com.au/industry-news/2009/sydney-container-gridlock-disruption-seen-spreading?utm_source=Sailthru&utm_medium=email&utm_campaign=ATN%20EDM%2025%2009%202020&utm_term=weekday_newsletter

EXTRACT:

FTA/APSA has brought these issues up in a letter to Patrick Terminals CEO Michael Jovicic, urging him to resolve its industrial relations matters through the FWC, as the federal government urged last week.

The letter highlights that NSW exporters "are faced with a critical reduction in available capacity and irregular services to meet current commercial obligations, jeopardising forward contracts with overseas customers", due to delivery failures caused by an erratic supply chain, that they may never recover in a competitive global trade landscape.

It notes that, despite farmers expecting a welcome bumper grain crop after drought and bushfires, "new congestion surcharges significantly reduces (and in some cases eliminates) margins, crushing the ongoing commercial viability for many reliant on international export revenue.

"Adding salt to the wounds are the cascading costs for waiting times for trains, staged storage of containers and related logistics costs directly attributable to the port congestion."