The Port of Brisbane and Port Phillip Sea Pilots have truly shown they value their shipping line customers in this unprecedented COVID-19 crisis. The Port of Brisbane has frozen prices until 30 June 2021, and Port Phillip Sea Pilots have cut pilotage rates by 10 per cent.
Shipping Australia commends and thanks Port of Brisbane and Port Phillip Sea Pilots for their support of shipping lines during these challenging health and economic crises.
Shipping lines are experiencing a severe cash flow squeeze. Ships have been forced to change port rotations, terminal windows, and vessel speeds to comply with government and port authority restrictions. That all comes at a cost. A 14-day stay-away period for some ports has forced several shipping lines to delay ships for days at a cost of around $25,000 a day. Adding to that a general decline in volumes has led to sailings being blanked. Shipping lines are incurring significant costs to deliver cargo. This is an unsustainable burden on shipping lines that could lead to a reduction of shipping services to Australia.
In mid-March 2020, Shipping Australia wrote to 30 ports and related service providers and requested a temporary fee-reduction, or at least a deferral of any fee increases planned for July. The overall response has been disappointing. There is still some hope as some state-owned port authorities have indicated that they are still considering their position.
Several have not responded. Others blithely replied that they are increasing fees, despite the global economy being plunged into one of the worst economic depressions in history.
After years of above-inflation fee hikes from Australian ports, shipping lines are seeking a relief from ports and port-service providers during this twin public health and economic crisis. Shipping Australia calls for an immediate and substantial reduction in fees and charges levied by ports and related service providers on shipping lines.
Editor’s note:
For additional information contact Rod Nairn, chief executive officer on 0449 902 457.
Shipping Australia is a peak national shipping association comprising 28-member shipping lines and shipping agents, which are involved with over 70 per cent of Australia’s container and car trade. They are also involved with over 60 per cent of our break bulk and bulk trades along with significant cruise ship and tug operations.
