Industry concerns as ships reroute away from ACFS

POTENTIAL redirection of empty container movements has already begun following ACFS Port Logistics (Australia) being placed in administration last week, industry figures say.

Administration followed applications for wind-up orders by parties including by the Australian Tax Office.

Freight and Trade Alliance director Paul Zalai said members had reported “some initial concerns that stevedore servicing of ACFS transport operations may have been affected following the administration announcement”.

“However, advice received… suggests that operations are currently continuing under normal arrangements,” Mr Zalai said.

“Our earlier concerns about the potential redirection of empty container movements have already begun to materialise, with major shipping lines reportedly directing equipment away from ACFS-operated empty container parks to alternative facilities.”

He said the focus would now turn to shipping lines and their contracted stevedores to ensure sufficient capacity existed across the network.

Mr Zalai said broader industry implications were "only now beginning to emerge”.

"This is no longer simply an ACFS issue. The challenge for the industry is managing the flow-on effects as container movements are redirected through an already constrained network,” he said.

"The coming days will be critical. If alternative empty container parks can absorb the additional volume, disruption may be minimised. If not, we could see congestion and inefficiencies emerge very quickly across the broader supply chain."

In a statement to DCN, ACFS chief executive Arthur Tzaneros said the Australian business was continuing to trade during administration.

He said during the administration process, the operation of ACFS was under the direct management of the administrator.

“As CEO, I am cooperating fully with this process. The administrator has assured me it intends to continue operating the business as a going concern while it conducts its work,” Mr Tzaneros said.

“This is an appropriate course of action. At the time of the administrator’s appointment, ACFS was operating profitably and delivering at a consistently high standard for customers and partners.

“I have confidence in the administrator’s ability to continue operations uninterrupted over the five weeks administration process, with the support of the great ACFS team – all of whom remain in place.”