Coastal shipping services under threat

The Australian Government has decided that the Fair Work Act will apply to vessels that had more than one single voyage permit or a continuous voyage permit over the last twelve months.

From 1 July this year, minimum Australian wages must apply to all the foreign crew on such vessels while carrying Australian coastal cargo, even though mostly it is only a small proportion of cargo on board a container, break-bulk or roll-on/roll-off vessels, the rest being Australian exports and imports.

Freight rates are likely to increase by hundreds of dollars per container from 1 July and even further from 1 January next year, when the Australian sea going award applies.

Alternatively, many of these shipping lines may, from 1 July, withdraw from this market because of these additional costs and their potential impact on Australian companies.

Shipping Australia Limited is urging the Government to exempt vessels that carry coastal cargo incidental to the carriage of Australia’s foreign trade.