Less than three months after the announcement of an Infrastructure Surcharges imposed on container transport operators by DP World, rival stevedore, Patrick Terminals, has announced increased Infrastructure Surcharges in Melbourne, Sydney, Brisbane and Fremantle from 10th July 2017.
The Patrick Surcharges will be as follows:
Sydney: $25.45 per container
Fremantle: $4.76 per container
Brisbane: $32.55 per container
Melbourne: $32 per container
The Infrastructure Surcharges will be applied to both road and rail transport operators for all full container movements, both import and export.
Patrick’s announcement is as per link: http://www.patrick.com.au/documents/NewDocuments/Infrastructure-Notice-to-Customers-final-June-2017.pdf
In relation to these Infrastructure Surcharges, The Forwarding Industry is of the opinion that:
• The relevant Infrastructure Surcharge will not result in a net public benefit
• The VBS, being a mandatory and monopolistic arrangement for terminal vehicle access, is not the appropriate manner for any Infrastructure Surcharge cost recovery and its implementation
through the VBS. Noting access to the VBS is by way of a commercial arrangement between transport operators and 1-Stop, and these contracts have individual and cumulative downstream
effects on third party users
• There is a lack of transparency as to the determination of cost and the rationale for the Infrastructure Surcharge
Take it or Leave it
The Various Transport Alliances believe additional stevedoring competition on the east coast of Australia has naturally led to highly competitive market negotiations for stevedoring contracts, and a commercial reluctance by the stevedores to negotiate higher prices with Shipping Lines to cover their rising costs of doing business.
Perversely though, it seems that this doesn’t faze Patrick or DP World, because they can offset these costs with impunity by imposing Surcharges on other parties in the chain who can’t push back.
Seemingly too, regulators such as the ACCC and governments have abandoned the container logistics sector and are allowing the market to bear, even though it is clear that the stevedores have unfettered power to impose these charges on a “take it or leave it” basis.
The latest announcements by Patrick has been brought to the further attention of the ACCC and asked them again to intervene. Will the ACCC do so? That is a matter for the Competition Watchdog, but if it doesn’t, it’s a clear sign that the system of cost recovery and revenue generation in the container logistics chain in Australia is broken.
Service Level Agreements / Performance Measures:
The existing Carrier Access Arrangements have again been exposed during these last months as being wholly inadequate to underpin the relationship between the stevedores and transport operators into the future.
Transport Alliance companies will pursue dialogue with each stevedore to establish proper Service Level Agreements (SLAs), including agreed performance measures, and appropriate mechanisms to have a say in how the millions of dollars collected through these “taxes” are spent to improve landside container logistics efficiencies and productivity.
We will monitor any progress regarding these charges, but expect these will be implemented irrespective of any opposition raised.
Should there be any further information required, please do not hesitate to contact us.
☎ 1300 814 743
April 28, 2017 in Latest News
Digitalisation is finally disrupting the logistics industry. After years of holding off, the logistic industry has succumbed to the benefits of digitalisation. Improving the use of technology is fast becoming the focus of growth for a lot of companies in the industry. To ensure you know what the industry is talking about, SAL Global have put together this article to define key terms, discuss the benefits of digitalisation and outline some risks associated with the tech adoption.
April 7, 2017 in Latest NewsAs referenced in recent industry advice notices, the Department of Agriculture, Water & Resources has revised the currently acceptable Import Packing Declaration templates.
The new version will become mandatory from 17 June 2017.A copy of the revised formats are accessible through the below link, and are now accepted as a valid Packing Declaration for all Import FCL & LCL consignments.
On this basis, we advise that the revised format is passed on to all relevant shippers and suppliers, and introduced with immediate effect.We have already begun providing the majority of our overseas agents & offices with the new format documents, and will continue to do so when arranging future shipments, in an effort to phase this in well before the mandatory effective date.Should you have any questions or concerns in relation to the new Packing Declaration format and its impact, please feel free to contact us on 1300 814 743 at any time, as we are more than happy to provide further assistance.
March 27, 2017 in Latest News
Extensive media coverage has put the development of drones, and self-driving lorries into the public eye. Lesser known however, is the fact that the development of autonomous ships is also well underway.
March 15, 2017 in Latest News
The logistics industry is a complex industry that is both volatile yet has high-profit potential. There are countless opportunities yet just as many threats to overcome to become successful and ultimately more efficient. Here is an industry update, including the challenges faced and current industry trends.
March 8, 2017 in Latest News
DP World have advised that from 3 April 2017 there will be an increase to the Infrastructure Surcharge in Melbourne from $3.50 to $32.50 per container, while in Sydney the per container fee will be introduced at $21.16 for all containers received or delivered into the terminal.
Both above fee’s will be implemented from the indicated date for all containers where S.A.L. Global Logistics manage the Transport for both Import & Export movement, and passed on at cost.
It should be noted that an infrastructure surcharge is already in place at Brisbane Terminal, whereas there is no such charge at Fremantle Terminal.
Should you have any questions or enquiries, please contact myself, or Brad O’Brien (0438 047 226).
What you need to know about this current NTC project and how it could positively impact supply chain management in Australia.
January 13, 2017 in Latest News
Importers need to be aware of the “full picture” when agreeing to terms (Inco Terms) on purchases that could leave you exposed to unexpected and unwarranted charges on your imported goods.
December 6, 2016 in Latest News
As a consumer, you would be the rare one if you haven’t experienced the delay of your Christmas orders arriving.
For at least the past five years, delivery services have fallen victim to intense consumer dissatisfaction with their packages arriving some days after Christmas or damaged.
Read More >>
Japan’s big three container shipping companies have agreed to establish a new joint-venture company to integrate their container shipping businesses.