The decision to schedule a large volume of blank sailings to Australia by international shipping companies will reportedly impact on one of its largest shipping terminal operators.
The Maritime Union of Australia (MUA) has warned that the blank sailings will throw the waterfront industry into disarray and cause significant economic hardship, with the latest example of shipping company cartel behaviour bolstering the case for government intervention into Australian supply chain security.
Hutchison Ports has advised the Union it expects the impact of the shipping companies’ withdrawal of sailings to its two terminals in Sydney and Brisbane will last four months.
The reduction in volumes will reportedly drive potential job losses and necessitate significant wage reductions and hardship for the entire workforce.
MUA said terminals operated by DP World in Fremantle and VICT in Melbourne are also affected.
“This is a prime example of persistent market failure in Australia’s supply chains, with Australian workers once again bearing the brunt of international cartel conduct on our coast and on our waterfront,” said Paddy Crumlin, MUA National Secretary.
“During Covid, this cartel behaviour took the form of rampant price gouging and scheduling and vessel allocation manipulations that created a false scarcity amidst the global pandemic.
“Now, they’re slashing sailings and leaving a massive vacuum behind to exert pressure once again on Australia’s supply chains and working people.”
The MUA said it will work with Hutchison and all affected stevedoring operators to protect job securities and manage the impact the scheduling gap will have on workers and their families.
In other news, the auction process for Scott’s Refrigerated Logistics is reported to be in overdrive right now.
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