One year into their parliamentary term, there is no doubting the achievements of the Federal Government in negotiating initial trade liberalisation outcomes with China and progressing broader Free Trade Agreement initiatives.
While they are to be commended for these achievements, they appear to have gone missing in terms of responding to the vitally important recommendations resulting from the Productivity Commission public inquiry of Australia Maritime Logistics System.
The final report from the Productivity Commission titled Lifting productivity at Australia's container ports: between water, wharf and warehouse, was publicly released on 9 January 2023.
In response, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) wrote to the Treasurer on 19 January 2023 and subsequently have met with key Ministers and/or their advisors in consecutive visits to Parliament House, Canberra during April 2023.
As a part of these meetings, extensive data was provided as evidence to back up our claims of $1 billion in incontestable charges being paid by exporters and importers via stevedore and empty container park vehicle booking system fees (including Terminal Access Charges) and unfair administration of container detention charges.
FTA / APSA took the opportunity to highlight the above in response to the Australian Financial Review investigatory journalism piece released today titled Importers warn of $1b fee hit from stevedores, ports.
An extract of the article states the following:
The Freight & Trade Alliance, which represents importers and exporters, has written to Treasury detailing what it claims is more than $1 billion in annual fees levied on transport companies that use ports, warning that increases are "contributing to inflationary pressures across our economy".
"[Transport companies] must pay rapidly increasing incontestable fees or are denied access to pick up or return sea freight containers," said FTA director Paul Zalai. "If the federal government is serious about addressing supply chain costs they will adopt the Productivity Commission's well-considered recommendations. Now is the time for the government to show true leadership." Treasury declined to comment.
Importantly, the article also refers to the NineSquared 2023 update to the Landside Port Charges Index highlighting three indices covering Access Charges, Ancillary Charges and Penalty Charges
FTA / APSA have followed up this morning with the Federal Government seeking a response. As always, FTA/APSA will keep members up to date on pertinent developments..
Paul Zalai - Director FTA | Secretariat APSA | Director GSF