UPDATE 8 - Victorian State of Disaster - epic battle to keep supply chains open

Saturday, August 8, 2020

While business continuity has been secured for all importers, exporters and international trade logistics providers under the current Stage 4 restrictions, complexity remains in terms of allowable operating conditions for warehouses (including import, export, 3PL and licensed depot operations).
 
As reported in UPDATE 8,  Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) joined industry representatives at a Victorian Government briefing on 6 August 2020, united in requesting relief from the measure stipulating 'specified worksites must not operate with more than 67 per cent of their daily peak and daily total workforce'. In response, the government representatives stood firm stating that industry must comply with this requirement and noted that stringent audit, enforcement and penalty provisions apply.
 
Yesterday, Friday 7 August, the Container Transport Alliance Australia (CTAA) hosted a further video-call consultation with senior officials from Freight Victoria with  FTA / APSA joining other invited organisations and representatives of CTAA Alliance companies.

The consultation involving 55 participants focused on the employee reduction mandates relating to warehousing operations addressing operational and safety impacts of the restrictions (in particular impacts on smaller operations), rationale of 'split shifts' (not currently permitted with the policy intent to have more people at home hence reduced permitted workers), costs to industry (noting shipping line detention fees for the late 'dehire' of empty containers), impacts on overall supply chains and lack of specific detail / insufficient lead time for implementation.
 
Both FTA and CTAA followed up again with mainstream media to bring related issues into the public spotlight. We note that the Australian Financial Review gave this matter extensive coverage in today's week-end edition.
VICTORIA'S EPIC BATTLE TO KEEP SUPPLY CHAINS OPEN - Australian Financial Review (Jenny Wiggins and Simon Evans).

https://www.afr.com/companies/infrastructure/victoria-s-epic-battle-to-keep-supply-chains-open-20200807-p55jhe

EXTRACT

Importers and exporters of freight that manage depots at ports are also still agitating for more easing of restrictions.

"We understand and fully support the need for drastic measures to safeguard the community, however the restrictions to warehousing operations are making it impossible to maintain supply chains," said Paul Zalai, director of the Freight & Trade Alliance.

"While the government is rightly encouraging home deliveries and 'click and collect' services, they really need to understand that you can't keep e-commerce going without maintaining the requirement of staff to meet demand to pick, pack, label and ultimately deliver."

Importers and exporters met with government this week asking for an exemption to the two-thirds warehousing rule but were told they must comply with the requirement and were also informed that stringent audit, enforcement and penalty provisions applied, Mr Zalai said.

Neil Chambers, director of Container Transport Alliance Australia, said warehouses in the container transport logistics supply chain had low staff numbers relative to their size because they were used as temporary 'in-transit' storage before goods were delivered to distribution centres or customers' premises.

Container and transport logistics groups want warehouses with low staffing levels to be exempt from reducing employee numbers further.

Cutting back numbers of employees in lean warehousing operations may have unintended occupational, health and safety implications, Mr Chambers said.

Since yesterday's engagement, the Victorian Government has amended the start time/date for the implementation of reduced numbers of people in transport logistics sector warehouses and distribution centres (now effective tomorrow Sunday, 9 August 2020 at 11.59PM AEST) - refer HERE
 
IMPORTANT: While FTA / APSA will continue to advocate for alternate safeguard measures and easing of this restriction, it is imperative that members with Victorian warehouse facilities (metropolitan and regional) must comply with the official regulation in terms of staffing level requirements and a reminder that warehousing and cold storage risk mitigations must be initiated in accordance with a COVIDSafe Plan (effective last night Friday 7 August 2020 at 11.59PM AEST).
FURTHER DETAIL

Please do not hesitate to contact me direct at pzalai@FTAlliance.com.au or 0408 280 123 - we will continue to update our dedicated 'State of Disaster' Frequently Asked Questions (FAQ) site available HERE
Paul Zalai -  Director and Co-Founder, FTA / Secretariat, APSA