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TGL summaries the NSW Ports Status Update

NSW Ports Status Update

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Update as of 9 October 2020.

Throughout the Covid-19 pandemic, almost every sector within the Australian economy has been impacted.  More specifically, the Australian supply chain and logistics industry have shown resilience in keeping up with the many changes it has been thrown. Port Botany and Port Kembla have demonstrated their importance as the key trade gateways for Australia servicing the state of New South Wales (NSW).

However, in recent weeks Port Botany’s container terminals have experienced significant delays. These delays have affected capacity, productivity, reliability and cost throughout the NSW container supply chain market.

Marika Calfas, CEO of NSW Ports, provides an update on the NSW Port’s most effected with regards to congestion and backlogs.

The NSW Ports welcomes the suspension of protected industrial action from the Maritime Union of Australia (MUA) on Patricks and DP World and continues to support them whilst all parties enter an enterprise bargaining agreement.

Ms Calfas said “It is critical that these agreements are finalised without further industrial action, to ensure our ports and supply chains continue the efficient flow of goods to support NSW and Australia.”

Following the suspension of industrial action at DP World and Patrick Terminals, shipping scheduled remain off window at all ports and may take many months to be restored.

Ms Calfas explains that all containers scheduled to be handled at Port Botany in September will now be handled in October and November. However, due to the suspension of the industrial action there have been improvements at the Port in productivity and capacity.

The current status of the Port is:

  • There is 1 container vessel waiting to enter Port Botany, 2 container vessels approaching the boarding ground, and 6 container vessels at berth. Some vessels have changed the order of their port calls to minimise waiting time.
  • There are 4 vessels that are still scheduled to omit Port Botany, with no new omissions announced in the past week.
  • DP World Australia and Patrick Terminals have more cranes in operation and greater throughput through their terminals.
  • DP World and Hutchison are permitting shipping lines to exceed proforma window exchanges, by agreement, to assist with the evacuation of empty containers. The trade-off being a 1-2 day delay to berth at the terminal at the present time. 
  • In terms of clearing the ‘backlog’ of vessels and containers at Port Botany, we understand that DP World Australia will have cleared the backlog within the next 10-14 days and Patrick Terminals is experiencing up to 21 days delay in scheduled vessel arrivals. 
  • There are containers that have been delivered, or are en-route to Port of Melbourne, and will need to be transhipped to Port Botany.  We understand that process could add up to 3-4 weeks.

The three major stevedores at Port Botany are Patrick Terminals, Hutchinson and DP World Australia.

For more information on the update on the NSW Ports, please read here.

We will continue to monitor the landscape and provide updates where necessary.

TGL Team

TGL summarises the Australian 2020/21 Budget with its impact on the logistics industry and its workers.

Australian 2020/21 Budget & it impacts on Logistics

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The Australian 2020/2021 Budget announcement brings positive changes to the working Australians despite the trillion-dollar debt the country faces due to the impacts of Covid-19.

With many alterations in the budget accounting for our national workforce, maternity cover,  health services, infrastructure, business owners, the environment, and tech, it is important to understand how the new budget will impact the logistics industry and its workers.

A commitment to make trade simpler was a key theme announced in the 20/21 budget. With a focus on simplifying measures to assist our agriculture exporters and continue the development of the anticipated single window trade system. Also due to Covid-19, the International Freight Assistance Mechanism (IFAM) has also been extended.

Below provides a summary of the key developments with direct relation to the logistics industry.

SIMPLIFYING TRADE

A number of measures were announced that will assist in simplifying the trade process:

  • $7.8 million to reduce compliance complexity for Australian business
  • $12.8 million over two years from 2020-21 to develop a new border intervention model for sea and air cargo
  • An extension of the Trusted Trader Scheme for a further 3 years. The Government has forecast that this measure will reduce revenue by $7.5 million over 3 years.  It is not immediately clear why deferring duty should result in a reduction of, and not simply a deferral, of revenue.

The Government said “Setting the foundations for a Trade Single Window is an important part of this work and will build on reforms of trade regulations and processes to make it easier for businesses to integrate into global supply chains.”  It is noted that currently, 28 agencies regulate trade at the border, applying more than 120 pieces of Commonwealth regulation.  For most traders, it would be enough if the Australian Border Force and the DAWE streamlined their border activities.

INTERNTIONAL FREIGHT ASSSITANCE MECHANISM (IFAM)

The Australian Government announced it is committing an additional $317.1 million in funding to the IFAM support mechanism and has planned to extend to 30 June 2021.  This initiative will continue to keep Australian farmers in business by ensuring they can get their high-quality produce into key export markets and that they stay connected with their overseas customers, and ensure access to vital imports including medical supplies. Due to the collapse of passenger flights, this has left a huge hole in air freight availability, so an extension of the IFAM is necessary to continue the smooth flow of trade.

WASTE EXPORT BAN

The Government has provided funding to support the ban of certain types of waste from 1 January 2021.  The Department of Agriculture, Water, and Environment (DAWE) will be responsible for administering a licensing and declaration scheme to enable the export of waste materials. It must be demonstrated that sufficient processing has occurred prior to export to prevent harm to the environment or human health overseas. Therefore decreasing the amount of avoidable excess waste.

DIVERSIFYING TRADE

The Government has previously hinted at a need to be less reliant on Chinese trade and has committed $6.6 million to “expanding and diversifying trade”. How this will occur has not been stated, but the Government has not been subtle in linking the measure with the free trade negotiations with the EU and the UK.  Related to this, the budget estimates continue to make provision for a Free Trade Agreement with India and the conclusion of the Regional Comprehensive Economic Partnership.

For those waiting for a duty free European car, 2022-23 could be the year, with duty on passenger motor vehicles expected to fall from $340 million on 21/22 to $100 in 22/23.

UPGRADES TO AGRICULTURAL EXPORT TRADE SYSTEMS

The Australian Government will invest $222 million over four years in modern agricultural export trade ICT systems. The Government hopes that the funding will reduce the impact to trade from system outages and reduce the regulatory burden on exporters.  There will also be $106 million over four years into the targeted regulation of exported goods.  Much of the funding will be to take into the digital age an export approval system that is still in many instances paper-based.

LOOKING INTO THE FUTURE

All partners in the supply chain can expect steady volumes over the next year.  While exports and imports are expected to each fall by 9%, these decreases are caused by large falls in the import and exports of services, such as education and tourism. The trade of goods should remain steady, especially for the end of 2020 with the lead up to the festive season. However, it’s largely guesswork as there has probably never been a harder time predicting the future economic performance of our key trading partners.


An overview of the major budget development areas on a national level.

INFRASTRUCTURE

Directly impacting domestic freight services within the logistics industry, the Australian government is allocating a total of $10 billion dollars to the redevelopment of major infrastructure areas to keep Australia running smoothly. This $10b is directed towards:

  • $7.5 billion in road and rail projects spread across all states and territories.
    • Around $3b of this will be used to fast track major road projects throughout all states, decreasing the overall travel time and improvements to the road quality and safety. To read more about which specific projects are fast-tracked, click here.
  • $53 million in gas infrastructure
  • $211 million provided for Australia’s domestic fuel security.
TECHNOLOGY

To assist in tracking and online services within the logistics industry, the allocations for national technology  are impressive:

  • $4.5b NBN upgrade will replace copper lines and older hardware
  • $29.3 million for 5G trials in industries including agriculture and manufacturing
  • $1.67b for cybersecurity
  • $260m for digital identity system for businesses
  • $3bn compo scheme “for damage caused” by our national space program
ENVIRONMENT

With sustainability and environment health being a major trend in logistics currently, the Australian government are listening to its citizens by becoming a more ecofriendly nation.

One allocation of the budget that could directly impact all areas of freight is the $1.9 billion dollar funding to support low emissions and renewable technologies, helping to lower emissions and address climate change. This could drive change in fuel types, air traffic, shipping lines, and sustainable alternatives for domestic freight.

Another that could directly impact sea freight imports and exports is the $47.4m that is being spread over four years for ocean health. This allocation of the budget could see actions for cleaning up the ocean and our beaches but also the frequency of cargo ships, fuel types, and sustainable ports.

TGL continues to support our trade partners by assisting wherever possible and providing information when requested.

We will continue to monitor the Australian 2020/2021 budget landscape and provide updates where necessary.

TGL Team

Australian Khapra Beetle Update

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Update as of 17 September 2020

This notice affects Australian importers and overseas exporters of high risk plant products sent via international mail (including express mail services).

The Department of Agriculture, Water and the Environment (DAWE) will commence Phase two of urgent actions to address the risk of Khapra Beetle on high-risk plant-products that are hosts of this pest.

As of mid October, the following list of high risk plant products will not be permitted entry from any country into Australia within mail articles or baggage carried by international travellers:

Rice (Oryza sativa)
Chickpeas (Cicer arietinum)
Cucurbit seed (Cucurbita spp.; Cucumis spp.; Citrullus spp.)
Cumin seed (Cuminum cyminum)
Safflower seed (Carthamus tinctorius)
Bean seed (Phaseolus spp.)
Soybean (Glycine max)
Mung beans, cowpeas (Vigna spp.)
Lentils (Lens culinaris)
Wheat (Triticum aestivum)
Coriander seed (Coriandrum sativum)
Celery seed (Apium graveolens)
Peanuts (Arachis hypogaea)
Dried chillies/capsicum (Capsicum spp.)
Faba bean (Vicia faba)
Pigeon Pea (Cajanus cajan)
Pea seed (Pisum sativum) Fennel seed (Foeniculum spp.)

The following exclusions apply: goods that are thermally processed that are commercially manufactured and packaged such as retorted, blanched, roasted, fried, boiled, puffed, malted or pasteurised goods, fresh vegetables, commercially manufactured frozen food and frozen plant products or oils derived from vegetables or seed.

The DAWE explains the Khapra beetle is a significant thread to Australian plat industries, including the grain export industry. Khapra beetle destroys grain quality making it unfit for human or animal consumption. Stored products also become contaminated with beetles, cast skins and hairs from larvae which can be a human health risk.

And continues to note if the Khapra beetle enters Australia it would have significant economic consequences. An outbreak could cost Australian 15.5billion over 20 years through revenue losses arising from damaged grain in storage from exports.

The global spread of Khapra beetle is increasing and it is being detected on a wide range of plant products and as a hitchhiker pest on containers from places the beetle is not known to occur.

For all high risk plant products that are imported, the Phase 2 urgent action is enforced by the DAWE to further mitigate the risk of the Khapra beetle entering Australia

Please contact our solutions specialist for how this action from the DAWE impacts your business and importing.

We will continue to monitor the landscape and update where necessary.

TGL Team

Waterfront Industrial Action Update

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An update on the current industrial action by the Maritime Union of Australia (MUA) that is impacting the major stevedores at Sydney’s Port Botany terminal and the impact on additional nation ports.

DP World Sydney reach an in-principal agreement with MUA

DP World Sydney has reached an “in-principal” enterprise agreement with the MUA for the next three years at their Port Botany Terminal.

Patrick Terminals welcomes MUA backdown

Patrick Terminals have come to an agreement with the MUA to solve their industrial dispute that is currently impacting their national ports. Following advice from the Freight and Trade Alliance (FTA) /Australian Peak Shippers Association (APSA), immediate action is needed to create to permanent solution for both parties.

After a day and a half of talks with the Fair Work Commission (FWC), the MUA announced it would immediately end all industrial action at Patricks Terminals in Sydney, Melbourne, Brisbane and Fremantle.

Patrick CEO Michael Jovicic said the MUA had inflicted unnecessary pain across the nations supply chain and now walked away with nothing.

“Having lost in the court of public opinion they decided to retreat to fight another day.”

During the talks the MUA rejected a generous offer of 1.5% pay increases for each year for 4 years with no changes to their current conditions or rosters.

In addition, Patricks offered to hire 50 new workers at Port Botany to assist with the current back log and congestion at the port. Patricks also offered job security and no forced redundancies for the life of the agreement.

Mr Jovicic said that he was surprised that the MUA rejected their offer.

“At least now we can get on with clearing the backlog which exceeds more than 100,000 containers around Australia. This is estimated to take between two to three months to return to normal”

Although this resolution between Patricks and the MUA provides temporary relief from the current dispute, there are no guarantees of relief from future industrial related disruptions.

The matter between the two is scheduled for further discussion with the FWC on the 26 October 2020.

We will continue to monitor the landscape and provide updates where necessary.

TGL Team

MUA wins as PHS suspends mooring services

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The PORTS and Harbour services (PHS) have halted in its ship mooring services at Sydney’s Port Botany terminal, following a fierce campaign against it by the Maritime Union of Australia (MUA).

The PHS general manager Mark Rigoni said that since they began operations on the 21 September they were “immediately subjected to a series of pickets by the MUA and its members.”

“In the face of the pickets we were unable to guarantee the safety of our workers and as a result we cannot provide a service to shipping,” he said.

For this reason, the PHS have chosen to halt their services to protect the safety of their workers.

The MUA has chimed back and said the union would “always defend the hard working men and women in the maritime community.”

“We sincerely hope that this spells an end to the aggressive campaign by Ports and Harbour services to undermine pay and conditions at Port Botany,” he said.

We will continue to monitor the landscape and provide updates where necessary.

TGL team

MUA offers peace deal to Patrick Terminals

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The Maritime Union of Australia (MUA) has offered a peace deal to Patrick Terminals that could bring an immediate end to the damaging industrial action.

The deal offered by the MUA is conditional on Patrick Terminals agreeing to a 2.5% pay rise for workers and continuity of existing terms and conditions. The parties are set to negotiate with the Fair Work Commission as the mediator at a conciliation hearing.

The dispute raged as the MUA wanted a 6% increase in wages for wharf workers.

“When the MUA and Patrick sit down for a conciliation hearing before the Fair Work Commission today, the union will be putting forward this genuine, reasonable, and fair peace offer that could bring the current dispute to an immediate end,” MUA National Secretary Paddy Crumlin said.

The protected industrial action and strikes have caused major impact to the nations wharves by decreasing available workers and overtime workers which has lead to port congestion, major delays, shortage of containers and increased fees and charges.

Patrick Terminals CEO Michael Jovicic said the industrial action had reduced the company’s operations in Sydney to 50 or 60 per cent of usual levels and has caused a backlog of 90,000 containers.

“I’m getting phone calls every day and night from importers and exporters complaining about this industrial action,” he told the ABC on Tuesday.

Mr Crumlin said if Patrick was serious about resolving the dispute in the interest of customers and the broader community, it would accept the union’s offer.

To learn more about the Protected Industrial Action impacting Patrick Terminals, please read our update.

We will continue to monitor the landscape and provide updates where necessary.

 TGL Team

Patrick applies to the Fair Work Commission to intervene to end the national industrial action

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Patrick Terminals today applied to the Fair Work Commission (FWC) seeking to end the Maritime Union of Australia’s (MUA) protected industrial action which, is “crippling” Australia’s major container terminals.

With their Port Botany terminal “running three weeks behind schedule” and their Melbourne terminal running “more than a week” behind, the stevedore is looking for assistance from the FWC to terminate the industrial action immediately before the situation worsens.

Patrick lodged an application with the FWC seeking to terminate protected industrial action which, has been impacting their terminals in Sydney, Melbourne, Brisbane and Fremantle. The company is seeking an urgent hearing this week.

Patrick CEO Michael Jovicic said the MUA industrial action in pursuit of 6% annual pay rises is inflicting serious harm on the business, customers, importers, exporters and shipping lines.

“Frankly enough is enough. We have been in talks for seven months on a new enterprise agreement and the MUA have been inflicting strikes, go slows and work bans on the company for nearly a month,” Mr Jovicic said.

“The union is threatening to ramp up the industrial action this week and has notified of a 24-hour strike at Port Botany on Friday.”

“As a result of the MUA action there are now 40 container ships off the Australian coast waiting to come into port. We now have close to 90 thousand containers being held up and there’s no end in sight.” he said.

“Many of our employees have told us they don’t want to be a part of the industrial action but are fearful of retribution by the MUA. This is completely understandable, but the reality is they are damaging the business and their own livelihoods,” he said.

The Freight and Trade Alliance and Australian Peak Shippers Association has offered their assistance to be an ‘expert witness’ in supporting Patrick’s claims of there being significant economic impacts to Australia because of this action.

To better understand the new enterprise agreement, detailed below is a summary of the MUA Claims for the new enterprise agreement and current pay and conditions:

  • 6% wage increase per annum for four years
  • A guarantee (no loss of jobs) for the term of agreement
  • The productivity scheme to be pooled across all employees regardless of whether they contribute to the task
  • Each employee to receive a $2k sign on bonus for the new enterprise agreement
  • A further 60 claims for changes to conditions across terminals in Sydney, Melbourne, Brisbane and Fremantle.

The claims will add an additional $40m per annum to operational costs across the Patrick business.

Patrick has offered guaranteed pay rises of 1.5% and 2.5 % over four years.

For more information regarding the current industrial action impacting Patrick and the details for each Port, please read our update.

We will continue to monitor the landscape and provide updates where necessary.

TGL Team

Sydney Waterfront Industrial Action - Wharf Strike September 2020

Waterfront Industrial Action Update

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An update on the current waterfront industrial action facing the major stevedores at the Port Botany terminal in Sydney.

Due to the recent congestion experienced in Sydney’s Port Botany terminal, the Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have seen an influx of serious concerns regarding the impacts of the congestion on the New South Wales (NSW) supply chain and logistics industry as a whole.

The FTA explained it is essential for the three Port Botany stevedores to resolve all ongoing industrial action to begin to ease port congestion and diffuse all further impacts to the NSW supply chain. By resolving this, it will “prevent a domino-effect of congestion at other ports”, the FTA said.

Continuing will detail the recent developments of each major organisation.

DP WORLD AUSTRALIA (DPWA)

As stated in our previous update, DP World Australia advised that the Maritime Union of Australia (MUA) will not be taking industrial action of any kind at their Port Botany terminal before 1 November 2020.

Operations for DPWA will be resuming and will continue to work to decrease congestion as of today.

HUTCHISON

The FTA was in contact with Hutchison Port who acknowledged the adverse impacts of industrial action however, they are confident that through further upcoming negotiations, they will be able to address the areas of concern soon and return to their regular state of service.

PATRICK

Following our previous update, Patrick terminals are in need of urgent resolution due to their large market share at the Port Botany terminal.

Due to recent industrial action at the Patrick Port Botany terminal, the congestion has continued to gridlock their operations with an estimated 58 thousand TEU in the system and delays reaching 18 days.

The FTA explains Patrick cannot operate at anywhere near capacity as a result of the Protected Industrial Action against them.

To understand more about the Protected Industrial Action currently impacting Patrick terminals, read here.

We will continue to monitor the landscape and provide updates where necessary.

 TGL Team

Patrick Terminals and DP World Industrial Action Update

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UPDATE: PATRICK TERMINALS WATERFRONT INDUSTRIAL ACTION

Patrick Terminals Port Botany delays and the implementation of further industrial action in other terminals nationally are continuously growing. 

Further delays are impacting Patrick terminals in Sydney Port Botany and Melbourne, with new industrial action imposed on Fremantle and Brisbane terminals causing mounting delays.

Explained in Patrick Terminal’s media release, “Currently, our Sydney Terminal is currently 12-14 days behind schedule, and it is forecast that the delays will increase due to the ongoing Protected Industrial Action. It is estimated that there are 35,000 containers backlogged, waiting to be loaded or discharged at Patrick Terminals – Sydney. Patrick Terminals in Brisbane and Melbourne also have berthing delays over five days.”

“Last week, the Maritime Union of Australia (MUA) notified Patrick Terminals of its intention to take further Protected Industrial Action at Patrick Terminals – Fremantle and Brisbane in addition to the industrial action already notified.”

The impacts of industrial action are detailed below.

New Action
Brisbane
  • 4-hour stoppages at 03:00 am, 11:00am and 07:00pm on Friday 25 September 2020
Fremantle
  • A ban on the performance of work on the Swan River Bridge for 31 hours commencing from 12:01 am Friday 25 September 2020;
  • 24-hour stoppage of work commencing 07:00 am Tuesday 29 September 2020
Previously Advised Action
Patrick Terminals – Melbourne
  • 24-hour stoppage of work commencing 06.00 am Friday 18 September 2020. 
  • 1-hour stoppages at 6.00am, 2.00pm and 10.00pm every day for 14 consecutive days commencing on Monday 21 September 2020. 
  • 1-hour stoppages at 6.00am, 2.00pm and 10.00pm each day from Monday, 14 September 2020 for an indefinite period;
  • A ban on the performance of overtime commencing from 06.00 am from Monday, 14 September 2020 for an indefinite period;
  • A ban on the performance of work on the vessel, Spirit of Auckland, for a period of 4-hrs commencing at 05.00 am on Monday 14 September 2020.
  • 8-hour stoppage of work commencing at 07:00 am on Monday 7 September;
  • A ban on the performance of work on the vessel Maersk Semakau for a period of 8hrs commencing at 07:00 am from Monday 7 September 2020;
Patrick Terminals – Brisbane AutoStrad
  • 4-hour stoppages commencing at 07:00 am Friday 11 September 2020 and 07:00 am Friday 18 September 2020;
  • 4 hour stoppages commencing at 07:00pm Friday 11 September 2020 and 07:00pm Friday 18 September 2020;
  • A ban on the performance of shift extensions commencing at 07:00 am Friday 11 September 2020 for an indefinite period;
  • A ban on attending work on days an employee is rostered as “off/avail” from 07:00 am Friday 11 September 2020 for an indefinite period;
  • A ban on attending work on days an employee is called into work after being placed on the standby list from 07:00 am Friday 11 September 2020 for an indefinite period;
  • A ban on attending for work after being called into work when not allocated from 07:00 am Friday 11 September 2020 for an indefinite period;
  • A ban on the performance of work on vessels that have been subcontracted or outsourced to Patrick by another stevedoring company from 07:00 am Friday 4 September 2020 for an indefinite period. 
  • A ban on the performance of upgrades and/or work in higher levels (except for Leading Hand Lasher) from 07:00 am Friday, 4 September 2020 for an indefinite period;
  • 24 stoppages commencing 11:00 pm Thursday 1 October 2020 (UPDATE as of 25/09/2020)
Patrick Terminals – Fremantle
  • Ban on the performance of work on the Margaret River Bridge for 32 hours, from 11:00 pm Thursday 17 September 2020 to 07:00 am Saturday 19 September 2020
  • A ban on attending for work on days an employee is called into work after being placed on the standby list from 07:00 am 17 September 2020 for an indefinite period;
  • A ban on attending for work on days an employee is called into work when not allocated from 07:00 am 17 September 2020 for an indefinite period;
  • A ban on the performance of work on the vessel Swan River Bridge commencing at 12:01 am from Friday 11 September 2020 and continuing until 7:00 am on Saturday 12 September 2020;
  • Ban on the performance of upgrades and/or work in higher levels from 07:00 am Friday 11 September 2020 for an indefinite period;
  • A ban on attending for work on days an employee is rostered as “off/avail” from 07:00 am Monday 14 September 2020 for an indefinite period;
  • A ban on the working of shift extensions from 07:00 am Friday, 4 September 2020 for an indefinite period;
  • A ban on the working of overtime from 07:00 am Friday, 4 September 2020 for an indefinite period;
  • A ban on the performance of work on the vessel Margaret River Bridge for a period of 24hrs commencing at 07:00 am from Friday, 4 September 2020;
  • 24-hour stoppage of work commencing at 07:00 am Friday, 4 September;
  • A ban on the performance of work on vessels that have been subcontracted or outsourced to Patrick by another stevedoring company from 07:00 am Friday, 4 September 2020 for an indefinite period.
  • 1-hour stoppages of work at 5:00 am, 6:00 am, 1:00 pm 2:00 pm, 9:00 pm, and 10:00 pm each day commencing on Friday 2 October 2020 and continuing for an indefinite period (UPDATE as of 25/09/2020).
  • Patrick Fremantle Terminal regret to advise that due to industrial action, R&D operations on Saturday 26 September DAY shift has been canceled (UPDATE as of 25/09/2020).
Patrick Terminals – Sydney AutoStrad
  • A ban on the performance of overtime commencing at 06:00 am Friday 11 September 2020 for an indefinite period; 
  • A ban on the performance of shift extensions commencing at 06:00 am Friday 11 September 2020 for an indefinite period;
  • Ban on the performance of upgrades and/or work in higher levels from 06:00 am Saturday 5 September 2020 for an indefinite period;
  • A ban on the performance of work on Project SABRE (Port-side Rail Project) commencing at 06:00 am Friday 4 September 2020 for an indefinite period;
  • 4-hour stoppage of work commencing at midday on Friday 4 September;
  • A ban on the performance of work on vessels that have been subcontracted or outsourced to Patrick by another stevedoring company from 06:00 am Friday 4 September 2020 for an indefinite period. 
  • 24-hour stoppage commencing 06:00 am Friday 2 October 2020 (UPDATE as of 25/09/2020)

UPDATE: IMMEDIATE WITHDRAWAL OF INDUSTRIAL ACTION DP WORLD SYDNEY

The Maritime Union of Australia (MUA) has withdrawn all industrial action at DP World Sydney effective immediately, ensuring all normal services at the terminal may resume. 

DP World made an urgent application to the Fair Work Commission to intervene on threatened industrial action at the Port Botany Terminal, due to the serious impact it could have on the already weakened New South Wales supply chain. 

The Maritime Union has confirmed via written undertaking that they will not be taking any industrial action of any kind at the DP World Port Botany terminal before 1 November 2020. 

With the above update from Patrick terminals, close eyes are watching Hutchison to see how they continue operations to manage the peak season and backlog of work already created due to the congestion at the terminal. 

We will continue to monitor the landscape and provide updates where necessary.

 TGL Team

Sydney Waterfront Industrial Action - Wharf Strike September 2020

Sydney Waterfront Industrial Action

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Major ports in Sydney, Australia are in utter chaos as wharf workers have stopped work resulting in shipping lines reporting almost two-week delays and heavy congestion in delivering vital supplies.

This industrial action appears to be the root cause for the waterfront strike and the existing operational issues, including empty container park congestion, vessels by-passing Port Botany and the massive shipping line surcharges imposed on exporters and importers.

Patrick stevedore’s have been conducting indefinite bans on work upgrades whilst a “go-slow” attitude has hit Hutchinson at the Port Botany terminal.

Overtime bans have also restarted at DP World adding to the increase of delays.

Shipping Australia said ships docking at Port Botany are experiencing five to 10-day delays with an estimated cost of $25,000 a day, forcing one ship to drop off its goods at Melbourne instead.

With these additional delays and docking fee’s, the introduction of a strike tax from some of the major shipping lines has shifted the costs from themselves to their clients, importers and exporters.

Major international shipping lines such as MSC and CMA CGM have started charging clients a “congestion surcharge” fee of USD $300 and USD $285 per TEU respectively. This is to account for any delays and port charges as a flow-on effect from the wharf strike.

The Morrison-McCormack Government has urged all parties involved in the Sydney waterfront industrial dispute to work together to minimise the impact on workers, freight, and the nation.

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the Government understood the frustration felt by Australian shippers and operators with the increase in stevedore fees and charges but actions that disrupt the operations of the industry are not the solution.

“During this pandemic, the entire nation has seen just how much we rely on our freight industry to keep shelves stocked and our economy running and how tirelessly all operators – including shippers – have been working to make this happen,” the Deputy Prime Minister said.

“Australia relies on shipping with 99 per cent of our trade moved by sea, so it is absolutely vital we see a quick resolution achieved between all parties.”

Fletcher International Exports founder Roger Fletcher said as the pandemic has already imposed restrictions on air freight, sea freight is a vital part in keeping Australia moving.

“At a time when regional Australia’s farmers have the chance to bounce back after years of crippling drought and devastating bushfires, they are being held over a barrel by a few hundred waterfront workers,” he said.

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