LANDSIDE congestion appears to be building up around Port of Brisbane, according to Shipping Australia and Container Transport Alliance Australia.
Shipping Australia warned shippers last week that the landside supply chain around Brisbane was becoming “highly concerning”, with depot space shortages, rail delays and a shortage of trucks.
And CTAA on Monday observed “the scourge of empty container congestion” was hampering landside container logistics operations at the port.
“We understand that there are currently generally higher volumes of both inbound and outbound containers and that these volumes are generally putting local logistics operations under pressures,” Shipping Australia said in a statement.
“There are also said to be staff shortage issues. We understand that logisticians have allocated extra resources, and some have moved to seven-day-a-week operations, however congestion and delays are said to be occurring nonetheless, delivery times continue to be pushed out, and further delays are thought to be inevitable.”
CTAA suggested “one major empty container park provider” at Port of Brisbane is in ongoing rate negotiations with its shipping line clients, resulting in significant empty import container de-hire volumes being directed to other ECPs which are near or at operational capacity.
According to CTAA, this in turn has led to a scarcity of truck arrival slot capacity and the need for the remaining ECPs in Brisbane to closely monitor capacity, truck slotting and truck arrival behaviours against slot bookings.
“These other ECPs are at or well over 80% capacity,” CTAA said in a statement.
“This level of congestion causes additional costs for transport operators, who must stage more empties back through their yards, double handle boxes, store them longer in-yard, and spend longer administering the de-hire and export pick up processes.
“If these added costs are passed on by transport operators to their forwarder and importer/exporter clients, then this simply makes imported goods more expensive for the end consumer and exported commodities less competitive in international markets unless the exporter absorbs the added costs.”
CTAA said it believes there is a danger that the delays would lead to some import containers not being de-hired in the container detention “free time” allocated by shipping lines.
“This causes fractious arguments between importers, their transport providers and shipping lines about who is responsible for container detention fees.”
There is also concern around food grade containers, which according to Shipping Australia are typically in significantly shorter supply than non-food grade containers.
“While shippers can request food grade containers at any time, they must realise that large volumes of empty food grade containers are not kept in stock,” the association told DCN.
“Ordering a good time in advance is key to avoiding frustration and disappointment.”
CTAA said the lack of suitable empty container types, including food grade containers, mean some shipping lines are giving exporters limited days to pick up empty containers and pack them before vessel cut-off.
“It doesn’t help if some parties in the chain, including shipping lines, think that there are no issues with the current capacity levels and empty container management processes, and don’t acknowledge that they have their part to play in solving the problems,” CTAA said.
“It is hoped that the current congestion is relatively short-lived, and that all ECP capacity in Brisbane is available again soon.”
CTAA acknowledged the addition of ECP capacity at Port of Brisbane through the opening of the Medlog facility on Fisherman Island.
The new facility, according to Port of Brisbane, spans 7.3-hectares and is expected to be one of the world’s most automated container parks.
However, CTAA said the current situation highlights the need for the Queensland government, in collaboration with Port of Brisbane and industry stakeholders to develop a more detailed set of independent landside container logistics performance indicators.
It said performance indicators are being published and refined in other major capital city container ports in Sydney, Melbourne, and Fremantle.
“For example, the Victorian government has recently refined its Port Performance Monitoring Framework to include vital empty container management indicators and is embarking on a collaborative industry/government trial of paperless truck entry initiatives into Melbourne’s ECPs.
“CTAA is calling on the Queensland government and the Port of Brisbane to investigate the development of similar performance indicators to compare landside container logistics productivity levels, and to work with industry on initiatives to improve the empty container management chain associated with the Port of Brisbane.”
In addition to landside congestion, according to Shipping Australia, global forwarders have reported ships being delayed at ports by between one and five days in the Brisbane area.
Port of Brisbane chief operating officer Peter Keyte told DCN the port community is working collaboratively to address the issues, which he attributed to some challenging circumstances earlier in the year.
“Here in Brisbane, we are also still feeling the effects of two severe weather-driven shutdowns of our shipping channel, which of course have contributed to congestion and haven’t helped landside logistics operations,” Mr Keyte said.
He said in addition to the opening of the Medlog container park and logistics hub, there are several other operators, both new and existing, that are looking at new premises or increasing current capacity.
“And as the port manager, we continue to work with all waterside and landside operators to understand where pinch points are and how they can be eliminated, especially with regards to managing ship queues and providing temporary container storage.
“We have and will continue to work with all supply chain participants to ensure Brisbane can minimise the disruption caused by these external factors and deliver world-class supply chain outcomes for our region.”
Mr Keyte noted the wider range of external factors that have been impacting Australian trade, and commended all supply chain participants for their work to facilitate the movement of goods since the onset of the pandemic.
“From Chinese port shutdowns, to the necessary but challenging safety measures imposed, to economic factors that have increased import demand: the industry has had significant challenges thrown at it and has proven itself up to the task,” he said.
“I think supply chain workers and businesses have been the unsung heroes of Australia’s economic response to the pandemic.”
Shipping Australia later told DCN that while circumstances are challenging at Port of Brisbane, there are remedial measures it has encouraged shippers to keep in mind.
“Inevitably, when there is a landside snarl-up, there are complaints raised against the ongoing charges levied for the hire of containers,” the association said.
“Container hire is a commercial matter between the shipper and the carrier; it makes up part of their carriage contract.
“Shipping lines often grant time for shippers to use containers without paying a charge. There are often complaints about shippers being unable to pick up, or drop-off, containers in that free time.”
Shipping Australia also encouraged shippers experiencing exceptional circumstances to talk to their carrier.
“Most shipping lines are willing to listen and to make reasonable determinations on a case-by-case basis as appropriate.
“Shippers may also have other tools to manage landside congestion and the associated costs. Among other options, they may be able to re-route cargo to different ports, swap container-types … and work in advance. On the financial side, they can take out insurance and pass on costs to customers.”
Shipping Australis noted transport operators also have access to a range of tools to manage congestion and costs.
“This may include adopting new technologies, amending their own customer contract terms, having insurance, issuing surcharges of their own, and refusing to take containers into their yards if they are full.”
This article has been updated to reflect further comment from Shipping Australia.
