The AIMA Notice of 11th September 2020 referred to the serious congestion situation existing at the Port of Sydney due to –
The result of the ongoing port congestion has seen the surplus of empty containers tied up in Sydney increase from 30,000 TEU/equivalent to 50,000 TEU/equivalent, with container empty parks full and vessels banked up waiting for a berth at the Port of Sydney.
With so many delays and vessels lined up for days and days unable to berth, the shipping lines have accordingly imposed congestion surcharges and details of these surcharges are attached.
There are 3 port operators at the Port of Sydney.
• DP World (Dubai ports) terminal
• Patrick terminal
• Hutchison ports terminal (lesser player)
DPW were subject to industrial action and on 19th September 2020 advised it had entered in arrangements with the Maritime Union whereby the union has undertaken not to impose any further industrial action prior to 1st November 2020. DPW remained operational as did Hutchison port terminal but has been affected by bans on overtime etc. On Friday 25th September 2020, DPW announced the Maritime Union had agreed to withdraw all industrial action at DP World Terminal in Sydney.
The busiest terminal in Sydney is Patricks who remain in dispute with the Maritime Union and that dispute is earmarked to be played out in the Fair Work Commission this week. Patrick’s terminal remains working but with union bans on overtime and certain other activities which prevent the normal throughput at the terminal.
Despite the above the bottom line is inroads are yet to be made into the backlog of vessels seeking to berth in Sydney nor the surplus of empty containers sitting at empty container parks and warehouses around Sydney.
AIMA, in conjunction with the APSA (Australian Peak Shippers Association) continue to lodge objections to the congestion surcharges and are engaged in lobbying the Government to become involved in the State and National interest.
Through their membership of APSA, AIMA is supporting action by the APSA who in turn are supporting Patricks in seeking a Fair Work Commission outcome to the dispute, so the massive backlog of containers can be reduced and the port congestion relieved.
Whilst AIMA has been able to achieve some concessions from their contracted export carriers (notably CMA-CMA/ANL and Hapag Lloyd) they are unable to otherwise influence the remaining lines in relation to surcharges on export containers and unable to influence any of the lines in relation to surcharges on import containers.
Consequently, AIMA Members in Australia will not have made any allowance for the port congestion surcharges resulting from the Sydney Port issues, which are likely to be levied on them through freight invoices for exports and port terminal handling/DTHC port charges invoices for imports.
In summary, the Port of Sydney is still currently operating but the backlog of containers will continue to grow until such time as the industrial action subsides.
In view of the situation in Sydney some carriers are bypassing the Port of Sydney (ONE LINE/Maersk) or not taking bookings to Sydney (Maersk) but all other carriers are still shipping into and out of Sydney and applying the port congestion surcharge.
It is hoped Government intervention will shortly become real but without a resolution of the industrial action, the congestion problem at the Port of Sydney will continue and may well expand into other ports like Melbourne, Brisbane and Fremantle where similar limited industrial action has already commenced.
We suggest you contact your AIMA Mover for further information regarding the port congestion surcharge and AIMA will issue further updates as the situation develops.
28th September 2020