Processing

Processors join calls regulatory changes to ease shipping gridlock

Beef Central, 19/11/2021

The Australian Meat Industry Council has thrown its support behind calls for sweeping regulatory changes to the shipping industry.

A suite of measures were recommended by the Australian Competition and Consumer Commission’s annual Container Stevedoring Monitoring Report 2020-21 released earlier this year

The report shed light on recent surges in demand for containerised cargo and congestion felt across Australia’s supply chain, leading to major delays and shortages of export equipment.

Freight rates were also on the radar, with the report highlighting rates on key global trade routes were about seven times higher than they were on a year-to-date basis.

The ACCC recommended several measures to address the issues, including:

  • Addressing industrial relations and restrictive work practices issues across the supply chain.
  • Ensuring that privatised ports do not levy excessive rents and charges.
  • Repealing Part X of the Competition and Consumer Act 2010.
  • Investing in infrastructure to fix 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.

The report also sheds light on the existing inefficiencies within the supply chain and the importance of investing in infrastructure to improve on these fronts. Specifically, it recommended public and private investments be made into Australia’s supply chain to improve on inefficiencies caused by larger ships, lack of rail access to Australian container ports and shortage of space in empty container parks.

Patrick Hutchinson

ACCC chair Rod Sims said international shipping line movements normally run lean and just-in-time, but a surge in demand and COVID-19 outbreaks have forced port operations to temporarily shut down. COVID related shutdowns at major global ports have consequently led to congestion and delays with a cascading effect across the world.

AMIC CEO Patrick Hutchinson said he hoped the recent push will result in change.

“The report and associated media coverage set a solid foundation for the advocacy AMIC has been undertaking directly with the Federal Government as well as through its membership with the Australian Peak Shippers Association (APSA),” said.

“The outcomes of the report align tightly with and provide validation to the suggested Terms of Reference that were put forward as part of a coalition of 30 industry bodies on which AMIC sits.

“We are hopeful that this report will drive Government action in this space and ultimately trigger a Federal Government led review into Australia’s shipping settings.”

 

Source: AMIC

 

 

 

 

 

 

 

 

 

 

 

 

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