Dear Freight Industry
The Empty Container Working Group (Working Group) met on Tuesday 3 May 2021. In previous weeks, the members agreed that the Working Group should be extended for another six months as significant opportunities remain to make improvements across the empty container supply chain.
Increased evacuation of empty containers from Port Botany
A key focus area for the Working Group over the last six months was enabling discussions between empty container supply chain members to improve container evacuation rates and the 'load-discharge ratio' for Port Botany.
The load discharge ratio is a simple measure of the number of containers moved in and out of Port Botany, which gives immediate indication of whether trade is contributing to, or reducing, stocks of surplus empty containers. A load-discharge ratio of greater than 1 means that there are more containers going out of Port Botany compared to the number coming in.
Over the past four months, the load-discharge ratio has improved, in particular in December 2020, February 2021 and March 2021 saw load-discharge ratios of 1.02, 1.08 and 1.09, respectively. These load discharge ratio results have been achieved during a period of increased movement of containers in and out of Port Botany. For instance, December 2020 saw the highest number of empty containers evacuated from Port Botany on record.
Data collected by the Working Group suggests increased exports of empty containers are having impacts on the supply chain. During March, average utilisation levels at empty container parks in Sydney fell significantly and were well below levels reported during peak periods of congestion in 2020.
Shipping lines and stevedores are continuing to collaborate and maximise evacuation of empty containers from Sydney.
Targets for the NSW Empty Container Working Group
Members of the Working Group have also discussed objectives for the next six months, including identifying goals for the broader supply chain. These include:
· Achieving a monthly load-discharge ratio of 0.98 or greater
· All shipping lines calling Port Botany to provide electronic records (EDO) in empty container park booking systems
· Increase the provision of electronic records (EDO) in empty container park booking systems by shipping lines from 65 per cent to 90 per cent
· Utilisation of operational capacity at empty container parks not exceeding 80 per cent
· Increase the use of after-hours and weekend slots for dehires/collections at empty container parks
· Increase the use of after-hours and weekend slots for dehires/collections at stevedore terminals and Cargolink
· Maintain an average dwell time of containers at empty container parks at the current 10 days or less per container
· Establish a performance measure on truck arrivals at empty container parks within booking windows
· Establish a performance measure on average truck turnaround times at empty container parks
It is proposed that targets for increasing EDO and use of out of hours slots be adopted as minimum success measures for the Working Group for the next six months, with other measures being broader goals for the whole supply chain. The Working Group will also continue to facilitate industry-led solutions to improve the efficiency and resilience of the empty container supply chain.
Road freight operator survey
The Working Group has committed to developing voluntary, industry-led solutions to supply chain issues. A survey of road transport operators has been prepared to seek input from the transport industry on after-hours operating models, the use of alternative dehire/collection pathways and general observations on system improvements that would assist operators.
A link to the survey is provided here: https://www.surveymonkey.com/r/5JFQVKL
The survey will be open for responses until 17 May 2021. It would be greatly appreciated if transport operators could take time to complete the survey. The survey takes about 20 minutes to complete and responses will help the Working Group to better understand current practices and develop solutions to issues in the empty container supply chain.
The next meeting of the Empty Container Working Group is scheduled for 25 May 2021.
Please contact us if you have any questions via freight@transport.nsw.gov.au.
Regards
Scott Greenow
Empty Container Working Group Chair
Transport for NSW