PRODUCTIVITY reform requires coordinated national-level intervention, rather than continued reliance on voluntary codes and fragmented state-based approaches, the Freight & Trade Alliance says.
The FTA has just lodged its submission to the Select Committee on Productivity in Australia, challenging what it argued was shipping line market concentration and poor vessel turnaround times at ports.
“Australia’s productivity is being materially undermined by persistent and escalating inefficiencies and cost impositions across the supply chain. A significant driver of these inefficiencies is the structure of the global shipping market,” the FTA wrote.
“Australia’s containerised trade is largely serviced by a small number of foreign-owned shipping lines operating in a highly consolidated, alliance-driven, and vertically integrated market.
“This concentration has amplified power imbalances across the supply chain, enabling practices that constrain landside efficiency and increase costs for exporters and importers.”
The FTA also highlighted the performance of Australia’s major container ports that “consistently ranked in the lower quartile” of the World Bank and S&P Global Container Port Performance Index (CPPI).
“Reforming shipping policy and introducing port efficiency is therefore not only a commercial imperative, but also essential for national economic competitiveness and supply chain resilience,” the FTA wrote.
“This directly influences trade competitiveness, producer and business margins, inflation, and investment confidence across the broader economy.
“Meaningful productivity reform will require coordinated national-level intervention, rather than continued reliance on voluntary codes, fragmented state-based approaches or incremental administrative changes."
This submission focuses on key FTA and APSA positions with recommendations addressing the following priority areas:
Freight infrastructure investment: improving last-mile connectivity, intermodal integration, and coordination between ports, rail, and road networks to translate infrastructure investment into measurable productivity gains.
Commercial accountability: strengthening transparency, regulatory consequences, and contractual safeguards to address power imbalances across the supply chain.
Minimum service levels and notification periods: establishing regulatory safeguards for exporters, importers, and freight forwarders, including prescribed variation notice periods.
Shipping competition review: reforming Part X of the Competition and Consumer Act 2010, with mechanisms to safeguard exporters and importers’ interests.
Regulation of terminal access charges: addressing incontestable stevedore and empty container park fees to improve cost transparency and market discipline.
Regulation of container detention practices: introducing federal oversight to ensure fair and reasonable container detention policies.
Air cargo national planning: establishing a coordinated framework to enhance air cargo productivity, including airport planning, freight-dedicated land protection, landside access, and regulatory oversight.
Community protection and border productivity reform: implementing direct payment mechanisms preventing identity theft and ‘piggyback’ of illegal imports.
The inquiry is expected to report on 30 September this year.