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Shipment warning! 45000 boxes backlog, Australia's multi-port strike!

Jan 18,2024

It is reported that the terminal work operated by Dubai World Ports Company (DP World) in four of Australia's largest ports has stalled, and it is expected that the dispute may further escalate in the next few weeks.

The Maritime Union of Australia (MUA), which has been without a contract since October 2023, received new strike rights from Australia's labor watchdog after three days of talks broke down, with shippers and carriers calling on the government to intervene.

Both sides accused the other of escalating the dispute after 10 months of negotiations and nearly four months without a contract.

DP World operates terminals in Sydney, Brisbane, Melbourne and Fremantle, which together handle around 40% of Australia's freight traffic. The company's rival is Patrick, the country's other big terminal operator.

A few days ago, Maersk's official website updated the warning about DP World's Australian industrial action.

Maersk said it was informed that by 22 January 2024, Australia had received additional notices of protected industrial action from the CFMMEU (Maritime Union of Australia Division) for each of its Australian terminals at the following ports.According to the notice, Brisbane, Sydney, Melbourne, Fremantle and other port operations will be affected. details are as follows:

DP World Group said the strike had caused a total of 1.34 billion Australian dollars in losses since it began last October. The staff lockout is costing the nation $34 million a day in lost productivity and causing further delays to necessities, which have been delayed for up to eight weeks.

DP World accused the strike action of "severely disrupting" their business,And it announced it would no longer tolerate a partial work ban and dockers involved in strike action would not be entitled to any wages "until they are willing to perform their normal duties.

DP World executive vice president of Oceania said the company "has negotiated constructively and made concessions, but it is clear that the union is willing to do maximum damage to achieve their purpose."Delays in key items such as meat, clothing and appliances will be exacerbated and will deal a huge blow to business owners who are already suffering from difficulties, he said.But DP World said it would prioritize critical supplies, including perishable food, medical supplies and humanitarian aid, as much as possible.

The disruption to the supply chain is severe as terminal work continues to stagnate, which has also triggered disruptions to logistics and transportation.The ongoing labor dispute has the potential to have a significant impact on the flow of goods at Australian ports. It can affect industries that rely heavily on on-time shipments, causing considerable economic disruption.

In fact, as early as October last year, the Australian union has been participating in strike action continuously, conducting work stoppages and 24-hour strikes to fight for a raise.Since the end of last year, many Chinese have reported that their parcels sent by sea from overseas have clearly arrived in Australia, but they have been delayed in delivery, and this situation has been going on for several weeks.

I would like to remind you that the shippers who have recently shipped to Australia must pay close attention to the delay and impact of the strike on the transportation of goods, so as not to bring unnecessary losses!

 

Source: Maersk Announcement, Foreign Media theloadstar, Australian Micropaper

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