OPINION:

Paul Zalai* - Sydney

July 04 2016 - 17:00:47

IT SAYS something about the industry landscape that stevedores are facilitating this outcome. Not that you can blame them, if stevedores can spare the capacity, why not accept the direct receipt of the empties as an additional service to existing and potential shipping line customers?

After experiencing initial teething troubles, the reform is starting to also reap benefits for transport operators who can run in empties in when picking up imports – can't argue with that!

Once a transport operator de-hires an empty container at DP World they only have to swipe-card to activate the VBS booked container. Safeguards for transport operators exist in the event that they are held up at the terminal, meaning that they are protected from paying penalties on the import container receipt.

Transport operators are now looking for extended hours of this two-way running solution to increase operational efficiency and to avoid detention charges for delayed container returns.

This approach aligns with container staging solutions that has become the norm even before the direct de-hire phenomenon spiked. Staging of container movements through transport operator yards allows for better "control" over many of the vagaries of direct point to point operations, including operational delays, traffic congestion, and improved truck capacity utilisation.

More and more, even for the medium size transport operators, the terminal to yard work appears to be completed by larger vehicle combinations (super Bs, B-doubles, etc.), particularly off-peak, with different fleets used for the yard-to-customer work.

Putting aside the terminal container de-hire operational issues affecting transport operators, a longer term concern is the impact of this reform on the ongoing commercial viability of existing empty container parks.

Assuming that shipping lines, port operators, regulators, stevedores and the transport logistics sector will be able to further streamline and expand the terminal de-hire process, a consequence may be that some empty container parks will wind up operations with their valuable real estate (located close to the port) used for other commercial purposes.

If this scenario becomes a reality, will we have a problem down the track when stevedore terminal capacity is eventually exhausted in line with projected trade growth? Will we be left scratching our head wondering where to store empty containers?

Perhaps new intermodal terminals emerging across metropolitan and rural areas with integrated empty container park facilities will provide the answer.

According to Allan Flynn (General Manager, Maritime Container Services), one out of every three containers received at an empty container facility are either too expensive to repair in Australia, have major damage or are simply not suitable for export use due to type or quantity. These containers therefore need to be repositioned to the port for empty evacuation.

Flynn commented in the Autumn / Winter edition of the Shipping Australia publication "if these containers are located at an intermodal facility in Western Sydney (some up to 60 kilometres from port) it becomes difficult to reposition them quickly and economically."

So are we in good hands?

Do we need an overarching body providing a holistic focus on short, medium and long term issues associated with such reforms or do we simply leave it to market forces to sort out the solutions?

* Paul Zalai is the founder and director of the Freight & Trade Alliance
www.ftalliance.com.au

Lloyds List Australia - Empty container dehire strategies – are we in good hands?

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