PATRICK REJECTS PRICE GOUGING ALLEGATIONS

Wednesday, September 29, 2021

This week is proving to be very interesting.

Further to Monday's member notice providing extensive detail of the Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) response to the protected industrial action impacting Patrick container stevedoring operations, we are delighted that we could meet our commitment to showcase the industrial action and the broader shipping crisis via mainstream media.

Some media highlights below:
THE BUSINESS (ABC)

I was privileged to have a 5 minutes of prime time on Monday 27 September 2021 in a discussion with Alicia Barry on The Business - recording available HERE 

While doing our very best to achieve business continuity on our waterfront, we continue focus on other reforms required to deal with shipping constraints and exorbitant freight rates.
THE AUSTRALIAN FINANCIAL REVIEW

The AFR this week provided Patrick stevedoring extensive exposure supporting its position against the protected industrial action imposed by the Maritime Union of Australia (MUA). 

On Monday 27 September 2021, FTA and APSA contributed significant comment highlighting the operational and economic impacts of the disruption to business continuity.


Port strikes threaten to cripple Christmas (Paul Zalai - Director FTA / Secretariat APSA)

Paul Zalai, director of the Freight & Trade Alliance, said if the latest action got to the point experienced last October "then it will have devastating impacts again".

"Throw the COVID situation on top of protected industrial action, on top of the challenges we're facing in international shipping and a high volume time in import and export commodities – we just can't afford to have stevedores shut down every few days."

Wharf strike over 'family and friends' hiring (David Scott - Member Representative - Se Freight - FTA/APSA)

David Scott, general manager at Commercial Freight & Logistics, said the industry was bracing for major congestion at Sydney and Melbourne and warned 12-hour stoppages planned for Melbourne every Monday, Wednesday and Friday would be "disastrous".

"The industry's struggling at the moment to move containers off the terminal in seven days a week, let alone cut it down by three days," he said.

He said the strikes would cause "a domino effect" by delaying the pick up of the containers to the good days and creating a backlog.

"Every man and his dog is going to try to get containers out of the wharf on Tuesday and Thursday and then you've suddenly got five days' worth of deliveries to make in two days," he said.

"Generally speaking if a terminal closes for one day there's a flow-on effect that lasts for about six days. It would take a long time to recover from."


PROFITS OBTAINED FROM TERMINAL ACCESS CHARGES
The AFR did how however provide the MUA with a free kick in the article Patrick rejects 'price gouging' allegations .

Stevedore Patrick says the money it raises from charging importers and exporters fees to move containers in and out of its ports does not fully offset the money it invests in improving infrastructure, as wharfies prepare to strike in Sydney and Melbourne over pay and conditions.

The Maritime Workers' Union has claimed that the surge in Patrick's annual profits was obtained by "price gouging" through terminal access charges and other shipping fees, arguing it had raised the cost of goods for Australians.

Patrick delivered an annual net profit of $25.6 million in the year to June 30, reversing a $15.7 million loss in the year earlier period.

In return for the use of our collated data on Terminal Access Charges, we are grateful to the AFR for showcasing our advocacy and need for reform in the charging regime.

The Freight and Trade Alliance, which represents importers and exporters, has asked the National Transport Commission to consider regulation to force stevedores to recover infrastructure costs from shipping lines, rather than from transport operators.

"It is an abuse of market power and unreasonable to impose a charge on a party that has no say; cannot negotiate the charge and cannot go elsewhere to receive and deliver containers," the FTA said in its submission to the commission, which is developing national guidelines on charges.

Stay tuned for more developments !!

Paul Zalai - Director FTA | Secretariat APSA | Director GSF