The question here is whether you’d splash out for the additions available here. “But we have, I think, a potential continuing problem because we’re continuing to have industrial relations issues that other countries don’t have, where we’ve got ports that have been privatised and they’re not regulated.You’ll pay a steep price for the pleasure “Once the pandemic is over, everything should get back to some sense of normality,” he said. However, he said it was “a dreadful time on top of everything else for us to be having industrial activity”. Sims said he did not want to take sides in industrial fights between the Maritime Union of Australia and stevedoring companies that have resulted in widespread industrial action, including bans on overtime and working at a higher grade. “And if you’ve got less ships coming here then you’ve got less reliable delivery times and a longer period between delivery times, and that mucks up the ordering system.” “It means that if you’ve got fewer shipping lines wanting to come here then you’ve got high freight rates, because those that are coming here will charge more. Sign up to receive an email with the top stories from Guardian Australia every morning The regulator said that during the pandemic the average time a ship spent idle at berth in Port Botany increased from 11.9 hours to 21.2 hours, leading some shipping lines to skip the port entirely. Stevedores have also been hit with higher costs after ports were privatised, according to ACCC research. The supply chain woes, which are caused by the ripple effect of China closing ports because of coronavirus cases, has retailers urging people to plan ahead and led to fears that the traditional Christmas shopping bonanza could be ruined.īut the ACCC said that even without the coronavirus, Australia’s ports were in bad shape, with the productivity of stevedores flatlining despite investing billions into infrastructure over the past decade and shipping lines becoming bigger and more powerful.Ĭiting research by the World Bank and IHS Markit, the ACCC said that even before the pandemic Australia’s two big ports, Melbourne and Sydney, were in the bottom 15% of global ports, ranked by efficiency.
Covid-19 has caused major disruption to global supply chains, raising sea freight costs about seven times above what they were before the crisis, the ACCC said in a report on Thursday.
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