Industry Update

To Valued Customers & Partners,

Container Road Transport Costs Skyrocket
Container Transport Alliance Australia (CTAA) Media Release

Rising fuel and fuel additive costs caused by global factors & demand, labour & skills shortages, long equipment purchase lead times, supply chain capacity constraints, and fees imposed by third parties are significantly squeezing container transport operator margins and cash flows in Australia.

To survive, transport operators have had little choice but to pass on rising costs to freight forwarders, importers & exporters, which ultimately add to higher consumer prices and rising inflation.

Read the full media release here.

Removal of Free Storage Days for Weekends and Public Holidays
Fremantle Ports Letter to Customers

Over recent years there has been a general increase in demand for common-user berth laydown areas, a trend that has increased since the onset of COVID-19. This demand is resulting in increased congestion, delays to vessel berthing and increased supply chain costs.

Fremantle Ports has been working with industry participants over recent months to remove bottlenecks and improve the overall supply chain efficiency. As an example, a five-day shipping shutdown was carried out for Berths 11 & 12 to enable a focus on clearing cargo. While these types of initiatives are proving valuable, there are occasions when berth laydown areas are being used for storage and distribution rather than efficient discharge of vessels.

In a bid to encourage better utilisation of laydown areas and reflect the 24/7 nature of port operations, effective 1 July 2022, the storage-free days on weekends and public holidays will be removed when they fall within the four free days.

This change is aimed at helping improve overall efficiency of the supply chain.

We will continue to review our rates and charges to ensure they are appropriate and drive the right behaviour and overall supply chain efficiency for the benefit of all port users.

Thank you for your understanding and co-operation.

Given the current conditions, SILA is not in a position to accept responsibility for any additional transport charges, wharf storage, or container detention that may be incurred as a result.

We are continuing to monitor the situation and will keep you posted as the situation changes, for better or worse.

In the meantime, SILA and our transport partners continue to do everything possible to minimise negative impacts on our clients, and we thank you for your patience, understanding, and kindness to staff through this period.

In the meantime, should you have any concerns, please don’t hesitate to reach out to your SILA Sales representative.

Thank you,

SILA Global Pty Ltd