DP World, one of the leading port operators, has estimated that the ongoing industrial action in Australia has already cost our economy a staggering $1.34 billion since October last year.
This equates to losses of $84 million per week.
The impact of this disruption is being felt across key industries such as meat, agriculture, retail, and logistics, resulting in significant financial losses, spoiled produce, and supply chain challenges.
Captain Melwyn Noronha, CEO of Shipping Australia, today said: “Australians when faced with the bill at the check-out are shocked by the the rapid increase in the cost of goods of all kinds, and especially, in the costs of the basics like groceries. This ongoing industrial action by the waterfront union during a cost-of-living crisis is destructive and harmful. The waterfront unions should stop holding Australia to ransom during this ongoing cost-of-living crisis, which is so hurting everyday Australian families. But, of course, they won’t. And that’s why today, we are calling on the Hon Minister Tony Burke MP to intervene and to stop this dispute”.
DP World’s analysis reveals some alarming figures:
- Every week, $344 million worth of trade is disrupted, equivalent to 0.7% of Australia’s weekly GDP.
- The meat industry, which contributes $13 billion annually, is particularly affected due to disruptions in just-in-time supply chains.
- Currently, there are over 44,000 containers stalled at ports, and it will take 2-8 weeks to clear the backlog once the industrial action ends.
- Shipping lines are rightly prioritizing loaded containers (the goods inside the containers are somebody’s stock-for-sale, or vital intermediate goods) and the logical consequence is that the industrial action causes an empty container build-up. That build-up results in ongoing costs in the millions for the trucking industry.
Shipping Australia understands that DP World remains committed to negotiating in good faith, despite claims to the contrary.
However, as usual the waterfront union seems more focused on economically destructive tactics rather than productive bargaining. By limiting the efficiency of supply chains, the waterfront union is causing severe harm to the Australian economy and is therefor putting numerous Australian jobs and the livelihoods of Australian families at risk.
Shipping Australia has previously written and made a call for an intervention by the Workplace Minister, the Hon Tony Burke MP, to end this dispute. Today, DP World Australia has done the same.
Shipping Australia supports DP World Australia in this dispute. We support DP World’s call today for government intervention in the DP World dispute.
And we, today, re-iterate our own call for for government intervention to end the dispute and prevent a further escalation of costs.
The harm caused to the Australian economy and to everyday Australian families has gone on for long enough and it has done far too much damage already.
It is time for Minister Burke to show leadership on this issue, to demonstrate that he cares about Australian families, and to step in and end the dispute.
