The shipping industry is suffering widespread losses as record low container, general and dry bulk shipping rates prevail.
In response, the Maritime and Port Authority of Singapore has reacted to support the industry by announcing a 10 per cent concession on port dues for bulk carriers from 15 April. This discount follows MPA’s 10 per cent concession on port dues for container vessels with a port stay of no more than five days that was announced in January.
Shipping Australia is concerned that some Australian ports and service providers have commenced their customary annual price increase with little or no justification and scant regard for global shipping viability. Port visit costs in Australia far exceed those prevailing at Singapore and any further increases in Australian port costs will only make this situation more unreasonable.
Shipping Australia has written to ports and pilot service providers pointing out that if Singapore can dig deep and cut charges by a further 10 per cent then Australia should hold rates steady for the next 12 months at least.
“The measures demonstrate Singapore’s commitment to help the shipping industry which is probably at its lowest ebb in close to a century,” SAL Chairman, Ken Fitzpatrick said.
“Unfortunately we find that Australian ports and State port authorities believe routine increases are justifiable every year but rarely do we see the real justification for these increases.
“We have asked Australian ports, State port authorities and service providers to seriously consider the dire economic environment under which liner, general and bulk lines are operating and either reduce or at least freeze charges for a minimum of the next 12 months”, he concluded.
Editor’s note:
For additional information contact Ken Fitzpatrick, chairman on 0412 226 930.
Shipping Australia is a peak national shipping association comprising 34 member shipping lines and shipping agents that would be involved with over 70 per cent of Australia’s container and car trade, over 60 per cent of our break bulk and bulk trades, and significant cruise ship and tug operations.
