Retailers feel brunt of rising freight costs and stock shortages.

 

The Australian Competition and Consumer Commission (ACCC) has released a new report that looks into the impact of global supply disruptions on Australian businesses.

 

Delayed shipments and rapidly rising freight rates are putting pressure on Australian importers and exporters, leaving businesses vulnerable, according to the Container Stevedoring Monitoring Report 2020-21. 

 

According to the ACCC, a surge in demand for containerised cargo and “extreme congestion” across the global supply chain have caused major disruptions and delays.

 

As such, some Australian exporters are struggling to meet contractual obligations according to the ACCC, and larger retailers are worried cargo will not arrive before Christmas.

 

To mitigate that, the report found many retailers are buying their own shipping containers and chartering vessels to ensure supply arrives in time for the busy summer sales period.

 

One stevedore told the ACCC that only 10 per cent of vessels arrived in their designated berth windows in 2020-21 - the lowest rate on record.

 

Workplace relations issues causing further disruption

 

The report also looks at how systemic industrial relations issues and restrictive work practices have further disrupted the supply chain and exacerbated congestion and delays.

 

The ACCC gave the example of how the Maritime Union of Australia (MUA) recently used industrial action to push for restrictive work practices, including enterprise agreements that limit the ability of stevedores to automate and make recruitment decisions.

 

For example, Hutchison Ports Australia’s enterprise agreement requires 70 per cent of new recruitments to be ‘family and friends’ of existing employees, or people chosen by the MUA.