DP World increase existing and introduce new landside charges

DP WORD AUSTRALIA (DPWA) TARIFF INCREASES

In accordance with the National Voluntary Guidelines 60 day minimum notification period, DP World Australia last night (Friday 2 December 2022) released its Public Tariff Schedule outlining a wide range of price increases (effective 2 February 2023) in Fremantle, Brisbane, Sydney, and Melbourne.

Following the Patrick Stevedoring lead and effective 2 February 2023, DPWA are also introducing a "Pondus" charge for weight mis-declarations at their Melbourne facility - refer HERE. 

Furthermore, a new "Energy Charge" will also apply and be paid by transport operators nationally, again effective 2 February 2023 - refer HERE.

COMMENTARY

As outlined in the Freight & Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) formal submission and public hearing presentation to the Productivity Commission's review Australia's Maritime Logistics System, the National Voluntary Guidelines are a complete waste of time offering no ability for industry to influence price on landside charges.

It is a pure bureaucratic process giving stevedores tacit approval to deploy their "ransom model" to turn on the "money tap" with 60 days' notice.

The FTA / APSA formal submission to the Productivity Commission (refer Section 4), summarises a consistent position advocated to both state and federal governments over many years:

"All businesses face a dilemma of how to deal with unavoidable costs such as rent, infrastructure, labour and power. Those same businesses are then forced to either absorb these costs or pass them on to their commercial clients. Similarly, stevedores and empty container parks should be forced to either absorb operating costs or pass these on to their commercial client (shipping lines). Shipping lines then have the choice to absorb or pass those costs onto exporters, importers and freight forwarders through negotiated freight rates and associated charges."

FTA / APSA commend the Productivity Commission' in supporting our position in their September 2022 draft report Lifting productivity at Australia's container ports: between water, wharf and warehouse (refer Draft recommendation 6.2):

"Terminal access charges and other fixed fees for delivering or collecting a container from a terminal should be regulated so that they can only be charged to shipping lines and not to transport operators"

FTA / APSA are further encouraged by the position of Senator Glen Sterle supporting this draft recommendation and will escalate our engagement with key parliamentary stakeholders to continue our advocacy lead for regulatory reform - read more. 

Paul Zalai - Director FTA | Secretariat APSA | Director GSF