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Australian Supply Chain Walloped by Strike Mayhem

australian

Australian Supply Chain Walloped by Strike Mayhem

Svitzer Australia, part of A.P. Moller – Maersk, has given notice of a lockout to all harbor towage employees following year-long pay dispute.

The lockout will take place from 12.00 am AEDT on 18 November and will continue indefinitely.

Notice was given to all employees covered under its 2016 National Towage Enterprise Agreement and their union bargaining representatives, the Maritime Union of Australia (MUA), The Australian Institute of Marine and Power Engineers (AIMPE) and the Australian Maritime Officers Union (AMOU).

Svitzer said this step is being taken by under the provisions of the Fair Work Act in response to ongoing industrial action being organized by the unions – which the company argues it is damaging its services and the national supply chain.

“There is significant disruption and ongoing uncertainty about the availability and reliability of our workforce and the ability to deliver services,” reads Svitzer’s latest release.

“This is harming our ability to reliably, safely and efficiently serve our shipping customers and port operations nationally.

“Svitzer has been notified of more than 1100 instances of protected industrial action since October 2020. It has received more than 250 instances of protected industrial action since 20 October 2022 alone, amounting to nearly 2000 hours of work stoppages.

“With each instance of industrial action valuable imports and exports are delayed, disrupted, or goods and produce lost.”

Svitzer added it “had to respond to the protected industrial action as a matter of necessity with one of the few avenues available to employers faced with such action.”

READ: Maersk towage subsidiary commits to 2040 decarbonization target

When the lockout becomes effective, no shipping vessels will be towed in or out of 17 Australian ports otherwise serviced by Svitzer.

This is projected to impact shipping operations at major metropolitan and regional Australian ports nationwide in Queensland, New South Wales, Victoria, South Australia and Western Australia.

Svitzer has been bargaining with the maritime unions for over three years since the agreement expired in 2019.

Svitzer is seeking to remove restrictive work practices from its enterprise agreement which are critical to the future sustainability and competitiveness of its Australian business.

“Our goal all along has been to reach a new enterprise agreement and we have exhaustively negotiated in good faith to try to do this,” said Nikolaj Noes, Managing Director, Svitzer Australia.

“We had hoped it would never come to a lockout – but we are at a point where we see no other option but to respond to the damaging industrial action underway by the unions.”

On 8 November, industrial action within the Port of Liverpool ended as Peel Ports Group (PPG) and Unite the Union agreed on a bargain deal.

PPG reported that Members of Unite at the Port of Liverpool Containers Division fully accepted the deal to increase basic pay by 9 per cent in a vote on 10 November.

lirquén

DP World Inaugurates two Super Post Panamax Cranes at Lirquén Terminal

DP World has inaugurated two Super Post Panamax ship-to-shore (STS) cranes at its Lirquén Chile terminal.

The two new cranes, powered by renewable energy, will help increase port productivity by 30 per cent and reduce the operational carbon footprint by 11 per cent while accelerating the company’s efficiency and growth at one of the main terminals in the Biobío Region.

The Super Post Panamax STS cranes will allow DP World to service ships with up to 22 rows, and are supported by yard equipment such as Reach Stackers and port trucks to accompany the increase in productivity at the dock.

The project also includes the addition of modern Optical Character Recognition (OCR) technology, which will speed up the process and improve the terminal’s safety.

Michael Spoerer, General Manager of DP World Lirquén, explained: “DP World’s Lirquén terminal is now poised to support additional economic activity through the port, expanding the world’s access to Chilean exports.

“This investment of nearly $45 million brings two of the most modern cranes in the world to our facility. As demand for goods increases across the region, we now have the capacity to handle the region’s largest vessels in the most sustainable manner.”

READ: DP World signs deal with Emirates Development Bank

DP World’s operations in Chile, through its terminals DP World Lirquén and DP World San Antonio, recently renewed its certification as the first port operator in South America to use 100 per cent renewable energy.

The company announced a $500 million investment at COP27 to cut carbon emissions by 700,000 tons as part of the Green Shipping Challenge (GSC).

Spoerer added: “This investment confirms DP World’s decision to enhance its commercial offer for containers on the West Coast of South America and to be a long-term strategic facilitator of cargo for Chilean importers and exporters.

“Productivity and efficiency at DP World Lirquén’s docks has grown significantly in recent years, thanks to investments, operational redesign and support from our workers, which have translated into benefits for our customers, both in containers, cellulose ships, ships with servicing the clean energy market and transportation.”

DP World Limited handled 59.6 million TEU terminals in the first nine months of the year.

AD

AD Ports Group, Iraq’s IDB Sign Port and Logistics Development deal

AD Ports Group and the International Development Bank (IDB) have signed a Memorandum of Understanding (MoU) to review opportunities for ports and logistics projects that could enhance trade flows between the UAE and Iraq.

Being the only Iraqi financial institute licensed from the Central Bank of the UAE to provide wholesale corporate banking service, IDB aims to provide its services to corporate clients and support a range of landmark infrastructure projects in both countries.

As part of its strategy for growth and globalisation, AD Ports Group has signed a number of milestone agreements to explore opportunities for the management and development of ports and logistics assets across Iraq, including a 2021 agreement with General Company for Ports of Iraq (GCPI) to promote increased cooperation.

The agreement was signed by Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, and Dr. Ziad Khalaf, Chairman, International Development Bank.

The UAE and Iraq have continued to strengthen trade ties in 2022, with several trade agreements and development deals.

The World Bank estimates that Iraq’s economy will expand 6.3 per cent over the next two years.

Last week AD Ports invested $800 million to buy an 80 per cent stake in Global Feeder Shipping.

nigeria's

Lekki Port Completes Work to become Nigeria’s First Deep Seaport

China Harbor Engineering Company Ltd (CHEC) has handed over Lekki port, Nigeria’s first deep seaport, to the government following completion.

The port will meet the needs of Nigeria’s economic development, said Cui Jianchun, Chinese ambassador to Nigeria in an interview with Chinese state media Xinhua.

As a commercial project of tripartite cooperation between China, France, and Nigeria, Lekki port is of great significance for promoting the Belt and Road cooperation in Africa, said the ambassador.

READ: Lekki Port receives second ship with handling equipment

The container terminal is equipped with a 1,200-metre-long quay as well as 13 quay cranes and has a capacity of 2.5 million TEU.

The Lekki Deep Sea Port was constructed by CHEC and is the first of its kind in Nigeria.

The $1.6 billion project was announced as part of the Nigerian federal government’s wider plan to develop six new deep sea ports in the south-west and south-south areas of Africa, to be carried out via public-private-partnerships.

“This new port will position Lagos as a new maritime logistics hub not only in West Africa, but in the whole Central and West African region,” said the Governor of Lagos State Babajide Sanwo-Olu at the ceremony.

The newly completed project will create nearly 200,000 direct and indirect jobs in Nigeria in the coming years, unlock the country’s economic potential, and boost the country’s revenue, Governor Sanwo-Olu added.

oakland

Port of Oakland Shuts as Workers Stage Walkout

The Port of Oakland has shut its terminals as clerks represented by International Longshore and Warehouse Union (ILWU) staged a walkout.

Longshoremen initiated labor action on 2 November, as one public advisory from Port of Oakland noted: “Our terminals are reporting terminal interruptions this morning that may lead to delays.”

Local media reported that a spokesperson for ILWU denied the walkouts were an official action of the union despite stalled negotiations with the Pacific Maritime Association (PMA).

SFGate reported that the clerk walkout happened because workers have not been paid on time, with 200 outstanding wage claims dating back to June.

Sources at the terminals described closed gates with piles of containers and trucks waiting to be loaded.

“Our customers are expecting deliveries and we can’t make those deliveries,” AB Trucking President Bill Aboudi said.

“It just snowballs. Every day that we’re shut down is like five days of catch-up.”

Back in July, Some 450 Port of Oakland dockworkers were unable to report to work as truckers protesting the Assembly Bill 5 (AB5) law blocked access to one of the port’s main terminals.

READ: Trucker protests wham Port of Oakland’s volumes

The Port of Oakland has since released: “Protesters have cleared the seaport area and our international marine terminals will try to reopen for tonight’s work shift.

“Yesterday’s labour action closed three of our international marine terminals. Our domestic terminal remained open. Operations resumed by yesterday evening and today we expect continued normal shipping operations.”

Port’s spokespeople said they are “hopeful the ILWU and the PMA can resolve their issues so that the flow of international commerce is not further impacted”.

The Ports of Los Angeles and Long Beach have not reported terminal shutdowns.

Workers at the Port of Oakland and other 28 ports across the US have been operating without a contract since July.

Most recently, Port of Los Angeles Chief Executive, Gene Seroka, said a deal might not be reached for months.

The Port of Oakland witnessed a year-on-year 7.9 per cent loss in total loaded container volume in September.

132,599 loaded TEU passed through the port, compared to 143,991 TEU in September 2021.

cosco

COSCO sells shares in Duisburg new Terminal

Chinese carrier COSCO has given up its shares in the construction of the new Duisburg Gateway Terminal (DGT) in Germany.

COSCO’s share in the terminal amounted to 30 per cent, which have now been sold to Duisburg port operator, duisport.

READ: Ports of Rotterdam and Duisburg sign digitalization, sustainability agreement

The Duisburg port company took over the shares in June, but both sides have agreed not to disclose the reasons for the Chinese exit, as reported by German broadcaster WDR.

The project for the DGT was launched in 2019 for a total investment of €100 million ($100.4 million).

duisport and COSCO would have held 30 per cent of shares, and Dutch inland shipping group HTS and Hupac 20 per cent each.

The new terminal will be built on the Coal Island of the German port over an area of 220,000 square meters with 6 cranes, 12 rail freight platforms, 5 loading zones, 3 berths for barges and an area of ​​60,000 square metres for container storage.

Initial predictions estimated that DGT was supposed to handle 850,000 TEU per year welcoming over 100 weekly trains coming from the New Silk Road.

The news comes shortly after the German government has approved the acquisition of a minority stake of less than 25 per cent in HHLA’s Container Terminal Tollerort GmbH (CTT) by COSCO.

The sale had been debated for months, as Germany’s Economy Minister, Robert Habeck, disclosed that he was inclined not to allow the deal, arguing the deal would give China a stake in critical German infrastructure.

Hamburg

Port of Hamburg will not Fall into Chinese Hands, HHLA tells German Government

The Port of Hamburg will not be sold to China, Hamburger Hafen und Logistik AG’s (HHLA) spokespeople have stressed, in an ongoing spat over a COSCO bid into German infrastructure.

The stakeholder announcement follows the news of China’s state-owned COSCO Shipping Ports Limited (CSPL) investing in 35 per cent of HHLA’s Container Terminal Tollerort (CTT) in September 2021.

Earlier this year Germany’s Economy Minister, Robert Habeck, disclosed that he was inclined not to allow the deal, as he argued the deal would give China a stake in critical German infrastructure.

Now, in its stakeholder announcement, HHLA provided an update to the ongoing process of obtaining the necessary investment law approval.

READ: COSCO’s bid in Port of Hamburg “pure business decision”

“HHLA is not aware of any rejection by six federal ministries,” HHLA’s spokesman wrote.

“It is incorrect to say that the EU has objected to the cooperation. The cartel law approval was granted by the responsible authorities.

“In the proceedings, which have now been ongoing for over a year, HHLA received no objective reasons that would indicate that the investment should not be approved,” the HHLA spokesman explained.

The firm clarified that as part of the planned partnership, CSPL will acquire a maximum of 35 per cent of the shares of CTT.

HHLA added that with regards to the Federal Government assessing the threat of Chinese access to German infrastructure, CSPL is not gaining access to the Port of Hamburg or HHLA.

IT and sales data also remain the sole responsibility of HHLA.

CTT is ultimately an “operating subsidiary,” the HHLA spokesman added. “HHLA retains sole control over all significant decisions. COSCO has no exclusive rights at CTT – the terminal remains open to container volumes from all customers.”

romania

DP World Nears Completion of New Multimodal Terminal in Romania

DP World has announced that the construction of its new terminal in Aiud, Romania is over 50 per cent complete.

The company first announced the new project in May.

Upon completion in 2023, the 82,000 square-meter intermodal terminal will link an area that contributes 50 per cent of Romania’s industrial GDP directly with rail connections across Europe and all the way to China.

DP World’s new terminal will have a storage capacity of 3,000 TEU and create direct links to key export markets – including Constanta port.

“We are very pleased to have reached this significant milestone in the construction of this multimodal terminal, which will be a big step in helping DP World become an end-to-end logistics provider in Romania,” said Cosmin Carstea, CEO of DP World Romania.

“As it is situated in Romania’s industrial heartland, when completed our Aiud terminal will provide exporters and importers in the wider area with direct access to a major transport hub, creating efficient, robust and reliable trade routes to the whole country and beyond.”

The Aiud terminal will also help reduce transportation costs and CO2 emissions through its on-site connection to the electrified rail infrastructure.

The new facility will enable Romania to become a commercial hub for European trade eastward, according to DP World.

Businesses in the region will have a fast direct connection within Europe to the Black Sea, North and Adriatic seas, while also having rail links to major hubs in Central Asia and China.

“Our purpose is to make trade flow,” added Rashid Abdulla, CEO of DP World Europe.

“The development of this vast new facility in Aiud is a strong example of DP World’s ability to provide new trading opportunities that connect cargo owners with their customers, whatever their products and wherever they are in the world.”

Earlier this month, DP World announced works have started to build a fourth berth at its London Gateway smart logistics hub.

The £350 million ($387 million) project builds on DP World’s £2 billion ($2.2 billion) investment in Britain’s supply chain over the last decade.

port

New Port of Liverpool Strikes Planned for End of Month

Workers at the Port of Liverpool will stage two more weeks of strikes as the ongoing fallout over pay and job security rolls on.

Unite the union said nearly 600 staff members will walkout from 24 October to 7 November.

The most recent strike was between 11 and 17 October.

The union argued that the latest offer from operator Peel Ports Group (PPG) was a real-terms wage cut due to inflationary pressures.

PPG argues it has offered staff a 10.2 per cent pay rise. The union, however, claimed the offer was around 8.2 per cent and the 10.2 per cent figure was based on the maximum overtime possible worked.

Unite General Secretary Sharon Graham said: “Peel Holdings is hugely profitable and can absolutely afford to pay our members a proper wage increase. It did so at Camel Laird, so why not at Liverpool docks?

“Instead of negotiations to resolve this dispute, the company has chosen to threaten jobs and repeatedly mislead about the deal it has tabled.

“Our members are standing firm, and have their union’s complete support. The company must put forward a pay rise they can accept or this strike continues.”

READ: Export wait times double in South African strike fallout

A recent Peel Ports statement said: “Unite continues to make unrealistic and unsustainable above-inflation pay demands, whilst declining a meeting with the Advisory, Conciliation and Arbitration Service (ACAS).

“We are concerned Unite have no interest in resolving matters through the collective bargaining arrangements we have in place or via an independent ballot, as it continues to push for more strikes.

“Our average the 10.2 per cent basic pay increase offered in talks last week represents an industry leading deal and is 2 per cent above inflation, at the time of the pay anniversary and review in June.

READ: Port disruption triggered by strikes likely to linger through year end

David Huck, Chief Operating Officer at Peel Ports said: “Unite’s decision to call a further two-week strike, against a backdrop of dramatic reductions in container volumes, is entirely self-defeating.

“This pay offer is greater than that of any UK port and we are disappointed they are resorting to the old fashioned, mass meeting show-of-hands, when we believe every single worker deserves the chance to have their say, without undue influence.”

PPG bosses are considering staff redundancy consultations due to an increasing decline at the port in recent months.

melbourne

Port of Melbourne Welcomes Largest Ship Ever to Call at Victoria Container Terminal

The CMA CGM Group has deployed the largest vessel to ever call at the Port of Melbourne (PoMC).

With a nominal capacity of 10,926 TEU, the CMA CGM Estelle berthed at Victoria International Container Terminal (VICT) in Webb Dock.

The ship operates on the North Europe Mediterranean Oceania (NEMO) service.

The previous record was held by the CMA CGM Ural, with a handling capacity of 10,622 TEU.

“VICT would like to congratulate the CMA CGM Group on their continued drive for efficiencies through deploying larger vessels with clear environmental benefits in the Oceania trades to support the demand of the economy and utilise the ability to increase economies of scale,” said Tim Vancampen, VICT CEO.

“In partnership with PoMC in the Webb Dock Development, we are committed to supporting the Victorian shipping industry with our $235 million investment that will increase our ability to accommodate increasing vessel sizes.”

READ: CMA CGM launches new US-South America new service

“It’s really exciting to see this vessel arrive at Port of Melbourne,” added Saul Cannon, PoMC CEO.

We are investing across the port to ensure we can accommodate the larger vessels that are calling at Melbourne.”

“The global shipping fleet is deploying larger vessels. Port of Melbourne is well positioned to meet global shipping trends to serve the growing freight needs of Victoria and south-eastern Australia now and into the future.”

The Port of Melbourne reported strong volumes in August amid peak season.

August 2022 saw total container throughput (full and empty) up 9.5 per cent over August 2021 with a total of 284,487 TEU.