IFCBAA Update - Sydney Port Congestion – Stevedores, Shipping Lines & PCS Schedule 

Further to previous IFCBAA bulletins on the issues at Port Botany, Sydney stevedore terminals.

IFCBAA would like to update members on actions concerning the Sydney Port Congestion – Stevedores, Shipping Lines & Port Congestion Surcharges (PCS) being imposed by a number of shipping lines in Sydney.

IFCBAA has updated a schedule of Port Congestion Surcharges and related information announced by the shipping lines, as attached.

Including

  • Maersk & Hamburg Sud Notices - Container Detention Suspension in Sydney Ceased
  • OOCL – Australia Ports Bookings Re-open – Sydney temporary booking suspension will remain 
  • ANL-CMA-CGM – Communications Update and Contacts

We will update the schedule as further announcements are received.  

Sydney Port Update

Following intervention by the Fair Work Commission (FWC) in the Protected Industrial Action at Patrick and DP World.

  • FWC ordered a lifting of PIA and DP World and Patrick to continue negotiations with the MUA.
  • All industrial action is ceased during this time and work has returned to pre-PIA operations
  • Patrick & MUA – FWC orders in place until 26 October
  • DP World & MUA – FWC orders in place until 1 November

Since the FWC orders, work has returned to (pre-PIA) normal, however it is going to take some time to catch up and clear the backlog of ships and containers.

Shipping lines and stevedores are adjusting their schedules to the improved conditions for now, though there are a lot of moving parts involved, including the stevedores and MUA resolving their EBA negotiations.

OOCL reports today -‘the significant schedule disruption around the Australian coast will take time to improve. Whilst we anticipate most ports will see improvements within 10 days, Sydney congestion may take up to 3 weeks to improve.

IFCBAA reached out to Patrick, DP World and Hutchison Ports for an update on Port Botany operations.

Hutchison Sydney

Response - TBA

Patrick

Response

“Patrick and the MUA met Wednesday/ Thursday of last week following our 424 application to suspend or terminate industrial action, during the two days, parties tried hard to reach agreement however unfortunately this didn’t happen.

We are set to meet again with FWC assistance later this month, for now all PIA has been suspended by the FWC until the case is closed.

Patrick’s operational managers are entirely focused on restoring the business to full capacity and making as much inroad into restoring the schedules as possible and working through the backlog of containers. We remain hopeful we can reach an agreement and move forward stabilizing the business and supply chains”.

  • As at last Thursday, Patrick Terminal Sydney was 12-14 days behind schedule with an estimated backlog of 35,000 containers waiting to be loaded or discharged, with significant delays with the current waiting time for a berth at 17.8 days.  
  • Across the other Patricks Terminals – berthing delays of 8 days in Brisbane, 9.3 days in Melbourne and 3 days in Fremantle.
  • Across all four container terminals, there are approximately 100,000 containers that are waiting to be handled by Patrick Terminals
  • Currently Patrick is working vessels 24/7 to catch up
  • Patrick is working with shipping line customers adjusting the congested berthing schedules during the FWC orders period
  • Evacuating empties with the shipping lines is a priority

DP World Sydney

Response

For DPWS, and as publicly stated ‘we have in Principal Agreement’ with our Employees and the MUA. Few small drafting matters to go, however I’d anticipate that we will go to a vote early Nov.

All industrial action was lifted on Sat 19 September and we have been working as normal since. There are no bans or limitations on us at all.

We are operating 24 x 7 on the waterside and rail and the normal 20 of 21 shifts a week on the landside. Road doesn’t normally operate from 2200 Sat to 0600 Sun, however where there is demand from industry we will work this shift.

I agree with the general sentiments expressed by OOCL. I’d expect that we will be in a much better position within 10 days with majority of our customer vessels schedule reliability back on track. Worst affected vessels may take to the 3 weeks mark, given the bunching of some ships over the last 2-3 weeks.

Despite this we have seen a significant jump in out throughput over the last 2 weeks and forecasts are that this will continue. We have and will continue to take adhoc callers and empty loaders in an effort to help clear the backlog, particularly empty containers sitting in full empty parks.

With the challenges of full empty parks, DPWS offers the Direct Return Empty product to majority of our shipping line customers and provide slots for the return of empties differently to the normal PBLIS slot releases. Dayshift slots are normally well used, however there always are slots on E/S, N/S and weekends. This provides avenues for your customers to have containers dehired directly to the terminal. Any challenges in attaining slots, they just need to contact our transport team who will in most instances assist with a slot [email protected]

Thanks for reaching out and feel free to drop me an email anytime (same for your members). Happy to help where we can.

Regards

Mark Hulme
General Manager Operations

E: [email protected]
DP World Australia
42 Friendship Road
Port Botany NSW 2036
dpworldaustralia.com.au

 

IFCBAA thanks Patrick for their response - and thanks DP World, Mark Hulme for his detailed response and his offer to IFCBAA members to email him.  

The International Forwarders and Customs Brokers Association of Australia (IFCBAA) has been proactive in raising these issues with the Prime Minister’s office, Federal and state governments, their agencies and the private sector, including initiating contact on these issues with the ACCC.

IFCBAA has continued its media campaign to highlight the impact the ports issues are having on industry and the Australian community.

Thanks to the many IFCBAA members and their customers for providing letters outlining the disastrous effect that this industrial action is causing. By request from the Attorney General, these letters have been passed on to his office for possible evidence to be taken to the Fair Work Commission.

IFCBAA urges all parties involved in the industrial action at Port Botany to resolve their differences and return the port to full operating capacity.

Under the current circumstances at Port Botany, which still appear to be a few weeks away from returning to normal, we will continue to keep members informed of updates from the shipping lines on their revised schedules, bookings and PCS duration.

To read the Port Congestion Surcharges and Shipping Line Updates, click HERE

Stuart McFarlane
Air and Sea Freight Forwarding Manager
International Forwarders & Customs Brokers Association of Australia Ltd.