REVIEW ON INTERNATIONAL SHIPPING - OPPORTUNITY TO CONTRIBUTE TO GENUINE REFORM

FEEDBACK SOUGHT TO SUPPORT FORMAL SUBMISSION

As members will recall throughout 2021, Freight & Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) called for an independent Federal Government-led review on international shipping.

In what as exceptional outcome resulting from?our sustained?advocacy?to Federal?Ministers, formal submissions and high profile?media?coverage, the Federal Treasurer?announced?on 10 December 2021?that?the Productivity Commission will conduct a formal inquiry into Australia's maritime logistics system to understand any long-term trends, structural changes, and impediments that impact the efficiency and dependability of Australia's maritime logistics system and connected supply chains.

On Tuesday 18 January?2022, FTA / APSA?were privileged to meet with?Commissioners Ms Julie Abramson?and?Dr Stephen King,?Ms Lou Will, A/g Assistant Commissioner and executive team representatives.

The Productivity Commission representatives outlined the?review's terms of reference and in response, FTA / APSA provided extensive detail on operational concerns raised by members and highlighted the following policy positions for consideration?:??

• a formal waterfront industrial relations review is required to provide immediate and continued business continuity for what is an 'essential service' and our international gateway for major supply chains;
• the scope of the National Transport Commission (NTC) to be expanded to examine regulation of Terminal Access Charges?to force stevedores and empty container parks (and LCL depots) to cost recover directly against their commercial client (shipping line) rather than via third party transport operators;
• implement measures similar to the current US FMC review to ensure fair and reasonable container detention practices are administered by shipping lines for the dehire of empty containers?– this will include a focussed campaign in partnership with the Container Transport Alliance Australia (CTAA);
• a focus on exclusive dealings to ensure that shipping line end-to-end logistics services do not lessen competition;
• international shipping line adherence to acceptable notification periods on service and cost variations – potential to follow the US regulation requiring a 30 day notice period;
• repeal?of?Part X of the Competition and Consumer Act 2010,?forcing international shipping lines to operate more closely to those competition laws faced by other businesses involved in Australian commerce – if deemed necessary for international shipping lines to have ongoing protections, introduce a federal maritime regulator to administer processes to safeguard exporter and importer's interests;
• maintain the federal government administered?International Freight Assistance Mechanism?(IFAM)?beyond the existing timeframe?(scheduled to terminate mid- 2022) to maintain global air connections and to retain Australia’s reputation as a reliable global trading partner;
• the need to escalate momentum in co-design and implementation of?regulatory reform to set a global?benchmark in trade facilitation measures whilst ensuring the highest integrity in biosecurity safeguards; and
• increase investment in infrastructure to address inefficiencies in the supply chain caused by larger ships, lack of rail access to Australian container ports and shortage of space in empty container parks.?

HOW TO CONTRIBUTE TO THIS IMPORTANT REVIEW

The Productivity Commission invites interested people and organisations to make a written submission by?Friday 11 February 2022?- further detail is available?HERE.

Further submissions will be sought when the draft report is released in May 2022.

The opportunity created here to influence genuine reform does not come around too often.

We now have that rare opportunity and strongly?encourage members to make a direct submission to meet next month's deadline and / or share views (and evidence of areas of concern) for incorporation into?the FTA/APSA formal submission to?Tony Vinson?(Head of International Freight & Logistics - FTA/APSA) by?Tuesday 1 February 2022.