Further to our advice in April of DP World’s introduction of a Port Infrastructure Surcharge, we have now received advice from Patrick of their intention to also apply a surcharge. Patrick is the other major container terminal operator in Australia.

Whilst the amount is not exactly the same as DP World applied, it is of a similar magnitude and will be applied on all containers (export and import) passing through their terminals in Melbourne, Sydney, Brisbane and Fremantle.

This fee will be effective on and from 10th July 2017.

Based on this, for imports this will be applied for any vessel arriving at their terminal from the morning of 10th July, and for export, we understand it will be applied on all containers received for vessels sailing from 10th July 2017.

This fee will be applied to all shipments that meet the above timing criteria.

Patrick has explained the need for the charge based on rent, land tax and council rate increases with the following specific reference “We have been notified of rental increases within our property portfolio of over 140% with some backdated to 1 July 2015”. Patrick has also stated that they are incurring rising terminal infrastructure maintenance costs relating to the landside interface operations and will use the surcharge as their cost recovery mechanism. The costs will thus be recovered from the Port users, rather than from their commercial clients, the shipping lines.

The Australian Peak Shippers’ Association, Freight & Trade Alliance and the Container Transport Alliance of Australia have led the case in the Australian Competition and Consumer Commission (ACCC) requesting a formal investigation of the DP World charging regime. The latest advice of Patrick’s intention to also levy a surcharge has been submitted for consideration also. There is not an indication at this stage as to when the ACCC with respond with their findings.

Failing any intervention by the ACCC, these additional fees will commence on 10th July 2017 at Patrick Terminals, and have already been in place at DP World terminals since April.

We will advise immediately should any of this fee proposal change.

Magellan has your back on this and other freight matters.  If you have any questions, please get in touch with me via steve@maglog.com.au or call your Magellan Client Services Team member on 1300 651 888.