FTA calls on Government to intervene

Daniel Kasif|Nov 2, 2020|No Comment

The Freight and Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) call upon the Australian Federal Government to intervene and push for action that supports the Australian supply chain.

 

The FTA pushes for the Australian Government to notice that the current supply chain operations specifically in Port Botany are under fire and will not improve until the government intervenes.

 

The FTA says "We need the Federal Government to intervene to ensure our port operations are seriously treated as essential services with permanent change to industrial relation law to ensure our trade gateways remain unimpeded."

 

Similar to actions from Shipping Australia, the FTA supports the notion that national reform is necessary to ensure that nationally co-ordinated industrial action across the waterfront cannot occur again.

 

The FTA says there is "Serious ongoing concern that further disruption to operations may again take place in coming months,"

 

"At a time when shipping lines desperately need to evacuate a glut of empty containers severely congesting port precincts, service surging import demands and help farmers get a bumper crop of agriculture commodities and other produce to export markets."

 

"While the Federal Government boasts about its achievements in gaining access to Free Trade Agreements and other opportunities for Australian commerce,"

 

"They are missing a fundamental requirement by failing to guarantee that we have a reliable supply chain to facilitate import and export operations."

 

The FTA explains it is unimaginable that there are insufficient ships entering Port Botany with cancelled sailings and others by-passing Sydney altogether. With many shipping lines refusing to take bookings due to knowledge of two week delays.

 

Those shipping lines that are servicing Sydney are charging astronomically priced 'congestion surcharges' on top of record high freight rates.

 

This leaves the clients who can meet the contractual obligations are doing so with diminished financial returns and in some cases at a loss.

 

The FTA says "Overseas purchasers are shaking their heads at the unpredictability of our operations and are moving to alternative suppliers in a highly competitive international trade environment."

 

This will pose a major threat to the long term sustainability of Australian exporters.

 

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