Infrastructure surcharges and 18% slot fee increases

ACF is updating you on all developments across Australia and the world. Keep checking in regularly for the latest news and updates. The following news features two condensed articles from the FTA (Freight Trade Alliance). In a worrying trend, they both point to container surcharges and increased fees.

INFRASTRUCTURE SURCHARGES – Queensland has been forced into action following the Hutchison announcement of an increase to their Infrastructure Surcharge from $50 to $94.78 per container (effective 27 July 2020). ATN also reported that the Western Australian government also recognise the serious problem that exists and are turning up the heat on a federal government-led approach to the issue – this aligns to the FTA / APSA advocacy and formal submission to the Deputy Prime Minister.

EMPTY CONTAINER PARKS FOLLOW THE STEVEDORE LEAD –  Our concerns are being realised with empty container parks continuing to also follow this business model of charging transport operators rather than their commercial client (shipping lines). We note that Victorian Container Management (VCM) took the opportunity this week in the middle of economic downturn and health pandemic to announce an increase in slot fees by 18%, the rationale being “due to the effects of Covid-19 with decreased movements and increased costs, VCM has no choice but to increase our gate fee to 38.00 as of 1st August 2020”.