FOLLOWING discussions initiated by the Victorian Department of Transport and Planning (DTP), it has been announced all of three Victorian-based container terminals will align their landside pricing tariffs to commence from 1 January each calendar year.
The move sees DP World Australia, Patrick Terminals, and Victoria International Container Terminal (VICT) adopt amendments to the Victorian Voluntary Pricing Protocol, with 60-day industry notices being issued by each terminal company on 1 November.
As Patrick and DP World have terminals in other jurisdictions, the decision means they have aligned the date of commencement nationally, to commence 1 January 2025.
The Container Transport Alliance Australia (CTAA) said it welcomes the change as it means that “transport operators can advise their landside customers once per year of the new landside charging arrangements for the two major terminal operators across Australia (Patrick Terminals and DP World Australia) and for VICT in Victoria”.
The CTAA said that as the terminal operating companies have agreed to announce on the same date, this means they no longer have the benefit of “following the leader” type strategies by seeing the pricing levels set by their competitors before announcing their own.
“CTAA understands that discussions may proceed to amend the National Voluntary Protocols on container stevedore landside charges previously developed by the National Transport Commission to align with the amended Victorian Protocols,” the alliance said in an announcement.
“However, this is likely to take some time to achieve. If that were to occur however, then Hutchison Ports’ terminals in Sydney & Brisbane, Flinders Adelaide Container Terminal and AAT in Brisbane may also align to the single date.”
Meanwhile, the Freight & Trade Alliance (FTA) commented on the stevedore Vehicle Booking System (VBS) charges which will also see an increase from 1 January next year.
The FTA said Australian exporters and importers are facing increased international supply chain costs, including a spate of surcharges and high freight rates imposed by foreign owned shipping.
“Rubbing salt into the wounds, contracted parties to shipping lines controlling containers on Australian shores continue to ramp up their ‘ransom’ charges forcing transport operators to pay spiralling VBS charges with no ability to influence service or price”, the FTA commented.
The alliance said Australian exporters and importers end up paying twice for the same landside service; once by stevedore and empty container park VBS charges, and again via shipping line-imposed Terminal Handling Charges.
The FTA said it was “Yet another” financial windfall adding to shipping line revenue, while their key supplier costs plummet leaving Australian traders, regional communities, and the general public picking up the bill of rapidly increasing supply chain costs.
The CTAA further mentioned that in the 60-day Notice of Intent issued on 1 November, Patrick Terminals stated that “landside charges initially paid by transport operators continues to remain well below 50% of Patrick’s overall revenue”.
“On behalf of CTAA Alliance companies, we will be asking not just Patrick Terminals, but each of the terminal operating companies, for more detailed information about the contemporary revenue spilt derived from Shipping Lines and from landside transport operators, and how that percentage spilt will possibly change over the next Financial Year,” the CTAA commented.
