DP World Industrial Action Continues
The MUA has notified DP World of additional Protected Industrial Action (PIA) at each of its terminals through to 30 January 2024.
The PIA continues the 2-hour stoppages three times every 24-hours through to 30 January 2024 at all of DP World’s terminals.
It also includes bans on loading trucks and trains at every DP World terminal from 0600, this Friday, 19 January through to 0600 Saturday, 20 January 2024 (0700 to 0700 in Fremantle.
The 2-hour stoppages effectively turn into 3-hour stoppages as no slots are being allocated in the hour time-zone beforehand to try to ensure that all trucks are serviced before the gates close for each stoppage.
DP World executive vice-president Oceania Nicolaj Noes said the company’s ability to operate its terminals is “severely impacted” and more than 50,000 containers are in backlog.
“Even if PIA stopped today, it would take months to clear the backlog which is incredibly concerning for Australian consumers and businesses,” Mr Noes said.
“While the MUA withdrew select bans this morning, severe forms of PIA remain ongoing that make it practically impossible to run our operations and clear the backlog. There continues to remain the threat that the MUA will ramp up PIA as it suits their agenda over the coming weeks.”
Federal Industrial Relations Minister, Tony Burke, was scheduled to meet with Nicolaj Noes and his management team at DP World this Thursday morning to discuss the dispute. Whilst details of the meeting are yet to surface, it was anticipated that DP World urged the Minister to use his powers under the Fair Work Act to terminate the industrial action and order the dispute into arbitration within the Fair Work Commission (FWC) on the grounds of the economic damage being imposed on the Australian economy.
However, the CFMEU, of which the MUA is a division, has urged the Minister to stay out of the dispute, saying that to do so would be “dangerous territory”, and that DP World “could afford to pay” the union’s demands.
Further details to follow soon.
Empty Parks + Adelaide & Fremantle Services Hit Hard
As the DP World issues continue on and vessel dwell times hit up to 12 days waiting to berth, many carriers are now forced to try and find ways to recover their schedules and continue back on their overseas journey in order to keep cargo moving.
One of the tactics we are seeing is the carriers refusal to stay in port after imports are offloaded and accept empty equipment to return back overseas, opting instead to continue on their journey to the
next port.
This is causing havoc for Empty Container depots which are once again reaching capacity and are unable to accept dehired containers, similar to the times experienced during COVID. Carriers are now forced to hold onto Empties for longer, waiting for timeslots to become available or negotiate with the carriers to alternate Empty Depots.
The second tactic shipping lines are using to recover schedules is the reduction of bookings and services via Fremantle and Adelaide, opting instead to drop all cargo on the East Coast and return overseas.
So far, carriers from China have announced the following regarding bookings to Adelaide and Fremantle:
- COSCO: From Jan.17, no further bookings accepted to ADL or FRE.
- OOCL: ADL + FRE bookings accepted only on a case by case basis.
- ANL: Halt on all Prepaid (CIF/CFR) bookings to ADL +FRE, only accepting EXW/FOB bookings
- ONE: ADL – only offering E-spot quotes and no guarantee of space.
- Maersk:
- ADL: only offering E-spot quotes and no guarantee of space.
- FRE: Bookings accepted on a case by case basis only.
Services from S.E.A. still appear to be accepting bookings to ADL and FRE without issue for now, but may follow China’s lead if the situation continues to deteriorate and vessel dwell times push further out.
For further details, please reach out to your Key Account Manager.