FESTIVE SEASON CONTAINTER DETENTION

UNREASONABLE CONTAINER DETENTION PRACTICES

As outlined in the Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) member notice?ACCC - CARGO OWNERS NEED PROTECTION FROM UNREASONABLE DETENTION FEES, the latest?Australian Competition and Consumer Commission (ACCC) Container Stevedoring Report 2021 -22 (December 2022)?notes that some shipping lines container detention practices are contributing to an overall increase in supply chain?costs costs which has translated into?higher prices for Australian consumers.

Section 6. in the report specifically outlines the ACCC position that in the circumstances where no level of detention fees can incentivise the?cargo owner to return the container on the due date, the levying of the detention fees?is?'unreasonable'.

For further detail on container detention, we encourage members to review the response to the ACCC report from Russell Wiese (CGT Law) - refer?HERE

SHIPPING LINE?RESPONSES TO EXTENDED DETENTION FREE PERIODS

The next few weeks will present difficulties for industry to return containers to shipping line nominated empty container parks due to the fact that from 24 December through to 3 January?only 3 regular working days will be available (28,?29?& 30?December), as well as a short first week of January 2023. Furthermore,?FTA / APSA note that many empty container parks have issued formal advice of both closures and shorter operating hours during this period.?

Given these circumstances, FTA / APSA have written to major international shipping lines seeking their position to either increase free time or waive detention during this period.?

Encouragingly,?Hapag Lloyd?stated they have been pro-active and in many instances agreed extended free time with respective cargo owners whose containers are due to arrive over this period.

Taking this one step further,?Hamburg-Sud?to date are the only shipping line to date to advise FTA / APSA that hey will offer a blanket exemption.with?extended free time covering all public holidays that are observed over the festive season. On review of their empty container park arrangements, confirmation has also been given that during the remaining days, there will only be a marginal impact to hours of operation, for a selected few, planned on 30?December.

Maersk?have stated that their formal position will be announced by no later than Monday 19 December.

To date, all other responses have generally indicated that circumstances will be considered on a?'case-by-case'?basis.

SUPPLY OF FURTHER EVIDENCE

We encourage members to proactively contact shipping lines during this period to address any potential delay in returning empty containers.

Should any?'unreasonable'?operating practices be experienced, please share details to?[email protected]?as we will be working throughout the end of year period and will share findings?as further evidence to progress our advocacy for reform as submitted to the Productivity Commission review of?Australia's Maritime Logistics System?- refer?HERE