Shipping Crisis Down Under: Australia Warns of Stevedore Squeeze on Aussie Importers

Australian importers are facing unprecedented challenges in container shipping, with some paying up to eleven times more for ocean freight compared to previous years, according to a new report from the Australian Competition and Consumer Commission (ACCC).

The crisis stems from multiple factors, including global supply chain disruptions, Panama Canal restrictions, and Red Sea attacks forcing vessels to avoid the Suez Canal. Industrial action at DP World’s terminals has further complicated the situation.

“It’s been a difficult time for businesses dependant on the container freight supply chain, which in turn affects consumers and impacts the Australian economy through higher costs and shipping delays,” stated ACCC Commissioner Anna Brakey.

The investigation reveals concerning trends in stevedoring costs. Between 2016-17 and 2023-24, stevedoring revenue per container jumped by 22.6% ($72.16), while costs only increased by 8.9% ($24.22). This disparity suggests significant market inefficiencies, with stevedores apparently leveraging their position to increase prices beyond competitive levels.

Empty container parks have also contributed to the crisis, with notification fees skyrocketing from $5.50 per container in 2018 to as high as $179.40 in Sydney and $143.30 in Brisbane by early 2024.

The ACCC’s findings point to systemic market failures, with importers and exporters facing limited options to negotiate or switch services. “Reform may be needed to improve the efficiency of the container freight supply chain,” Brakey emphasized, suggesting potential policy or regulatory interventions to address these market failures.

For Australian businesses, these challenges have resulted in lost sales, cash flow problems, and potential reputational damage. The ACCC’s continued monitoring of this situation across major ports including Adelaide, Brisbane, Fremantle, Melbourne, and Sydney suggests that without intervention, these issues may persist.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 107,297 members