Operational conditions are at breaking point in NSW with a surplus of imports over exports in recent months leading to Empty Container Park (ECP) congestion.
We note the MCS Cooks River announcement that effective from 5am today (Friday 21 August), they will not be accepting any dehires until further notice due to space restrictions "as we are again over capacity". MCS have advised transport operators to contact shipping lines for alternate ECPs.
Escalation of shipping line managed re-directions is causing chaos for transport operators with costs generally being passed through the supply chain.
Rubbing salt into the wounds, we are experiencing the avoidance of relief from shipping lines on container detention dehire fees (despite the fact that many shipping lines have not evacuated empty containers to ease congestion) and multiple ECPs (nationally) taking the 'soft' option of rapidly, and in quick succession, increasing container dehire booking fees.
Happy days for shipping lines. They have industry acting as their free taxi service relocating containers and no longer have to negotiate rates with ECPs who have followed the stevedore's lead of conveniently charging transport operators in an unregulated environment where market forces cannot take effect to influence price or service.
The bottom line is that the supply chain participants face increased 'cash flow' pressures with importers ultimately smashed with increased costs adding significant financial pressure during the current economic downturn,.
We have raised this pricing matter with executives at Transport for NSW and will continue our engagement on operational reform via the Empty Container Working Group facilitated by Transport for NSW and NSW Ports. |
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