Empty Container Dehire - Sydney

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received feedback from members that extensive ongoing delays are being experienced in the dehire of empty containers in Sydney.
 
Shipping lines contract the Empty Container Parks (ECPs) to accept the empties but many appear to be doing little to facilitate an effective logistics process. As a result, we have an environment whereby:
 

• some ECPs have inadequate operating hours;

• some ECPs are not allocating enough time slots per truck arrival zone – this is a capacity issue;

• some shipping lines are not supplying a reliable EDI flow of data, which increases landside administrative costs and perpetuates paper verification of de-hire instructions;

• redirections of empty containers by some shipping lines to alternative de-hire locations are high in Sydney (including to match rail demands) with little advanced notice, creating planning and scheduling difficulties for transport companies;

• some ECPs are enforcing rules/disciplines for truck arrivals to reduce truck queuing and ensure that trucks arrive in their intended time zone (within allowable tolerances); and   

• there is no certainty of service and truck turnaround times.

 
There currently seems to be little commercial incentive for shipping lines to change instructions and commercial terms with ECPs as they also collect additional revenue from detention fees incurred as a result of the late return of empty containers.
 
In order to manage the task, many transport companies are being forced to become staging hubs for empties due to the above. This results in additional handling of containers and extra truck trips whenever a container cannot be taken directly from the unpack location to the ECP.      
 
In terms of specifics concerns raised about the performance of DP World Logistics Australia (Port Botany), FTA / APSA acknowledges :
 

• significant additional fees and surcharges have been proposed or introduced by many transport operators;

• contact has been made with DP World Logistics Australia  who recognise that some operators have experienced difficulty in booking suitable notifications and indicate that industry engagement and remedial action is being initiated;

• DP World Logistics Australia dispute the accuracy and application of some of the claims made by some transport operators;

• the Container Transport Alliance Australia (CTAA) has continued to advocate on behalf of their Alliance companies regarding the delays and addition costs – CTAA notice is available HERE; and

• encouraging news that transport operators, DP World Australia Logistics and relevant shipping companies have scheduled meetings to achieve much needed reform.

 
FTA / APSA will continue to monitor developments and will provide member updates in anticipation of improved operational outcomes. We trust that improvements in service delivery will be matched with a commensurate reduction in any surcharges introduced by transport operators.
 
Paul Zalai – FTA / APSA