THE INTERNATIONAL Forwarders and Customs Brokers Association of Australia is urging the federal government to urgently implement reforms outlined by the Productivity Commission in its report on Australia’s maritime logistics system.
The commission published the report on 9 January, following a draft report released in September last year. The report elicited strong reactions from many across the industry.
IFCBAA chief executive officer Paul Damkjaer said imposts such as “energy fees” and “infrastructure surcharges” were being applied, and they lack transparency or justification.
Mr Damkjaer said his members were also being hit with additional costs such as fees for the late return of empty containers even where returns were impossible because container parks were already full.
The Productivity Commission’s report pointed out that transport operators have “no choice” about which terminal they use when picking up or dropping off a container.
“So [they] must pay whatever price a terminal operator sets,” the commission wrote in its outline of the final report.
“Recent rapid increases in terminal access charges (TACs) have flowed through to cargo owners (and consumers). Voluntary protocols to address terminal operators’ abuse of market power should be strengthened.
“Transport operators and cargo owners are paying fees to shipping lines for the late return of containers even where the delay is because empty container parks are full.
“The exemption for shipping contracts, which means that these fees fall outside the scope of the Australian consumer law, should be removed.”
The report also said inefficiencies at Australia’s major container ports directly cost the Australian economy about $600 million a year.
“Ports also have large indirect impacts on Australian businesses and consumers, so that any sustained disruptions to imports or exports magnify these costs across the economy,” the commission wrote in the report.
Mr Damkjaer said up to 90% of consumer goods purchased by Australians arrive in the country by ship.
“Consumers would be concerned if they knew that they were paying more for what they buy because of the high cost of landing goods in Australia at a time when they are already facing significant cost of living increases,” he said.
“There is hope because the Productivity Commission has recommended that the Australian Competition and Consumer Commission be given authority to scrutinise the charges being imposed by container terminal operators.
“However, the recommended action will only count if the federal government accepts and implements this key reform as a matter of urgency.”
The Productivity Commission recommended that the Australian Treasury develop a mandatory code under which the ACCC had authority to scrutinise all landside charges.
“As an industry association we are urging the federal government to treat this issue as a priority reform,” Mr Damkjaer said.
“Accepting the Productivity Commission’s key recommendation would be good news for the economy and the fight against inflation, and also very good news for Australia’s consumers.”
