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Empty container issues raise tempers in Melbourne


Truck queuing delays at empty container parks in Melbourne are again at unacceptable levels, leading to increased costs and extreme operational frustration for road transport operators according to the CEO of the Victorian Transport Association (VTA), Philip Lovel AM.
 
“The Christmas peak has turned into the New Year blues for the Port of Melbourne’s container supply chain. A number of the empty parks have reached operational capacity and are performing poorly,” Mr. Lovel lamented.
 
It is not unreasonable for road transport operators to allow 30 minute truck turn-around times at empty parks on average, and vehicles certainly shouldn’t be delayed more than one hour.
 
But since October last year when container volumes peaked, the empty parks have just been unable to handle the volumes.
 
“Everyone in the container transport chain needs to address the problems – and quickly. Transport companies are not in a position to absorb the additional operational and administration costs caused by these delays. They will have no choice but to recover the costs from importers and exporters through higher rates, demurrage, or though other surcharges and levies.
 
“Unfortunately, it’s not just one issue that is causing the problems, but many:
  • Shipping lines have not been repatriating empty containers overseas.
  • Empty parks have had equipment failures, labour issues, and operational flows have stagnated due to internal congestion.
  • Empty parks aren’t open long enough, especially now that other parties in the chain such as transport companies are moving more towards 24-hour, six or seven day operations.
  • There is a lack of information visibility across the empty container chain.
  • There is simply not enough empty park capacity now that the volumes are returning to pre-global financial crisis levels.
No doubt, transport companies can also swamp a park with truck arrivals if they think that they will get a good run through the park. But when they all have the same idea, congestion occurs.
 
“A prime illustration of the urgency of the problems has been the real difficulties in returning Hapag-Lloyd 40’ containers to any empty park – no one wants to take them and the shipping line has even suggested to transport companies that they should return them to the importers!! What a joke,” Mr Lovel said.
 
“The other absolute joke is truck drivers having to sit in empty park gate queues for more than two hours. In fact, it’s not funny at all, as the empty parks are breaching their legal obligations under the chain of responsibility heavy vehicle driver fatigue laws as loading managers.” added Mr. Lovel.
 
There has been are marked increase in truck redirections, adding to futile trips and unnecessary heavy vehicle movements on roads.
 
“Imagine sitting in a truck queue for hours only to be told: ‘Sorry mate, we are full, take the box elsewhere.’ Who pays for that? And how does that help the Government’s aim to reduce truck traffic associated with the Port of Melbourne?
 
“The shipping lines must be held accountable. They have narrowed the number of empty parks they employ and have under-compensated those parks for years for the services they provide. Now, they cannot walk away from the consequences of their actions,” Mr Lovel warned.
 
“… we will [also] be confirming with the shipping lines that no empty container detention charges will be invoiced to importers when the circumstances show that empty park congestion and delays have restricted the ability to return containers on time.
 
“We are at the point where we would welcome importers and their transport service providers taking on the shipping lines in court on empty container detention fees. We might even consider setting up a ‘fighting fund’ to facilitate such legal actions!
 
“Detention fees are a real money-gouge by the shipping lines, made more obnoxious by the lack of service at empty park facilities.”
 
“[And] we will be seeking cooperation from VicRoads and Victoria Police to investigate the congested empty parks to determine whether they are meeting their obligations under chain of responsibility (CoR) fatigue laws.”
 
As the parks fall under the definition of “loading managers” within Victoria’s CoR laws, they have legal obligations to ensure that they do not contribute to heavy vehicle driver fatigue. If there are truck queues of more than 30 minutes in length, the parks are obliged to take ‘reasonable steps’ to minimise possible driver fatigue, for example by making facilities available for drivers to rest away from their vehicle, or have systems in place to minimise queuing.
 
One example of action is to encourage the shipping lines, empty parks operators, importers & exporters, and transport companies to cooperate with efforts to improve the visibility and exchange of electronic information on empty container chain movements.
 
Empty park operators are improving their electronic management systems through technology service providers such as Maximas, and Tradegate is ready to trial its PortBIS container park information exchange system in the Port of Melbourne.
 
“We will be urging everyone to crack on with these initiatives – let’s move rapidly past trials to prove that the systems work and get on with actual implementation. The problems are so severe and the need for more timely information flows is so apparent that we would be negligent, all of us, if we didn’t do so.” Mr Lovel concluded.

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