{"id":165,"date":"2021-08-11T08:57:35","date_gmt":"2021-08-11T08:57:35","guid":{"rendered":"https:\/\/worldcourier.vn\/en\/?p=165"},"modified":"2021-08-11T08:57:35","modified_gmt":"2021-08-11T08:57:35","slug":"container-detention-fines-should-be-exempted-in-some-cases-based-on-industry-leaders","status":"publish","type":"post","link":"https:\/\/worldcourier.vn\/en\/container-detention-fines-should-be-exempted-in-some-cases-based-on-industry-leaders\/","title":{"rendered":"Container detention fines should be exempted in some cases based on industry leaders."},"content":{"rendered":"
In a climate of dramatically higher freight rates and a scarcity of container capacity in key Asian ports, multinational shipping companies’ exorbitant surcharges and container detention penalties are disproportionately affecting Australian firms in the midst of a profound economic recession.<\/div>\n
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<\/div>\n
WHAT IS THE PROBLEM ABOUT CONTAINER DETENTION FINES?<\/span><\/div>\n
<\/div>\n<\/div>\n
Transport operators are incurring significantly higher costs in additional truck kilometres travelled, staging (temporary storage) of containers through transport yards, and time delays in \u201cde-hiring\u201d empty import containers.<\/div>\n
<\/div>\n
Because contracted facilities used to store empty sea freight containers within the Port Botany precinct are at capacity.<\/div>\n
<\/div>\n
Despite the fact that there is a backlog of empties clogging empty container park facilities and no capacity to take more, shipping lines continue to levy container detention fees on importers for failing to return empty containers within defined time frames.<\/div>\n
\"container\"<\/div>\n

\u00a0SHOULD CONTAINER DETENTION PENALTIES BE EXEMPTED?<\/h2>\n
<\/div>\n
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Over the last year, the problem has gotten worse.<\/div>\n
<\/div>\n
According to publicly accessible information from NSW Ports, total imports through Port Botany were 462,390 TEU (twenty foot equivalent units) in September through December 2019, compared to total exports of 446,351 TEU.<\/div>\n
<\/div>\n
In other words, even before the COVID-19 outbreak or the present level of industrial action on the Sydney waterfront impacted stevedore terminal operations.<\/div>\n
<\/div>\n
Shipping lines were not evacuating enough empty containers out of Port Botany.<\/div>\n
<\/div>\n
Due to COVID-19, which affected freight movements and resulted in a significant number of “blank sailings,” the Chinese New Year in late January 2020 was followed by a period of lockdown in several Asian regions.<\/div>\n
<\/div>\n
When production resumed, resulting in a rise in Asian exports, shipping lines maintained a high ratio of blank sailings and managed vessel capacity to ensure full vessels through GRIs (general rate increases), rate stabilisation programs, and increased freight charges.<\/div>\n
<\/div>\n
Poor weather, industrial action, and infrastructure activity at shipping line contracted stevedore operations caused vessel bunching and delays around the Australian east coast, particularly at Port Botany, resulting in the imposition of \u2018Congestion Surcharges’ by the shipping lines.<\/div>\n
<\/div>\n
In May, June, and July 2020, more than 30,000 TEU more came in through Port Botany than were exported, adding to the glut of empty containers that had already built up prior to 2020.<\/div>\n
<\/div>\n
This trend is expected to continue as shipping lines reduce the use of \u2018sweeper’ vessels to evacuate the surplus empty containers.<\/div>\n
\"\"<\/div>\n

WHAT WERE THE OUTCOMES OF THE EVENT?<\/h2>\n
<\/div>\n
The Transport for NSW Empty Container Working Group includes officials from the Freight & Trade Alliance (FTA) and the Container Transport Alliance Australia (CTAA) (ECWG).<\/div>\n
<\/div>\n
While much effort is being done in this topic, the results will likely provide longer-term solutions rather than quick cures.<\/div>\n
<\/div>\n
Transport for NSW is engaging with industry to see what extra land or facilities are available for empty container park use, according to Neil Chambers, Director CTAA.<\/div>\n
<\/div>\n
\u201cWhile this is a commendable attempt, it’s difficult to see how such services might be implemented fast “<\/div>\n
<\/div>\n
“In the meanwhile, shipping lines should shoulder some of the financial and operational burdens that have been placed on transportation companies, importers, and exporters during these difficult times.\u201d Chambers said<\/span><\/div>\n
<\/div>\n
According to Paul Zalai, Director FTA and APSA Secretariat, it is time for a blanket relaxation of container detention penalty in Port Botany until shipping lines can evacuate enough containers to relieve congestion.<\/div>\n
<\/div>\n
\u201cIt is time for international shipping lines to stand up and be a part of the solution and not use this predicament as a means of recovering operating costs to sustain record profits.\u201d<\/div>\n
<\/div>\n
\u201cThese forced surcharges by shipping lines are plainly being utilized to cover the costs of poor planning, operational inefficiency, and strategic lethargy in the belief that \u2018the customer will pay.’\u201d Zalai said<\/div>\n
<\/div>\n
Source:\u00a0www.ftalliance.com.au<\/div>\n
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In a climate of dramatically higher freight rates and a scarcity of container capacity in key Asian ports, multinational shipping companies’ exorbitant surcharges and container detention penalties are disproportionately affecting Australian firms in the midst of a profound economic recession. WHAT IS THE PROBLEM ABOUT CONTAINER DETENTION FINES? Transport operators are incurring significantly higher costs […]\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nContainer detention fines should be exempted in some cases based on industry leaders. - World Courier Logistics Vietnam<\/title>\n<meta name=\"description\" content=\"In a climate of dramatically higher freight rates and a scarcity of container capacity in key Asian ports, shipping companies' container\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/worldcourier.vn\/en\/container-detention-fines-should-be-exempted-in-some-cases-based-on-industry-leaders\/\" \/>\n<meta property=\"og:locale\" content=\"vi_VN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Container detention fines should be exempted in some cases based on industry leaders. - World Courier Logistics Vietnam\" \/>\n<meta property=\"og:description\" content=\"In a climate of dramatically higher freight rates and a scarcity of container capacity in key Asian ports, shipping companies' container\" \/>\n<meta property=\"og:url\" content=\"https:\/\/worldcourier.vn\/en\/container-detention-fines-should-be-exempted-in-some-cases-based-on-industry-leaders\/\" \/>\n<meta property=\"og:site_name\" content=\"World Courier Logistics Vietnam\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-11T08:57:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/worldcourier.vn\/en\/wp-content\/uploads\/2021\/08\/EUROPE.png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u01af\u1edbc t\u00ednh th\u1eddi gian \u0111\u1ecdc\">\n\t<meta name=\"twitter:data1\" content=\"3 ph\u00fat\">\n<!-- \/ Yoast SEO Premium plugin. -->","_links":{"self":[{"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/posts\/165"}],"collection":[{"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/comments?post=165"}],"version-history":[{"count":1,"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/posts\/165\/revisions"}],"predecessor-version":[{"id":168,"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/posts\/165\/revisions\/168"}],"wp:attachment":[{"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/media?parent=165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/categories?post=165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/worldcourier.vn\/en\/wp-json\/wp\/v2\/tags?post=165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}