Landside charges at Australian seaports have become a contentious issue of late. Starting January 1, 2024, there will be a substantial increase in landside fees at every terminal, with a rise of 52.52% in Melbourne, 38.80% in Sydney, and 37.50% in Brisbane.
So what does that mean exactly? Australia’s ‘port charges’ consist of two distinct fee structures: water side charges, which are related to unloading the ship, and landside charges, associated with moving the cargo within the terminal.
In practice, terminals essentially have two main customers: the shipping lines, to whom they apply water side costs (e.g., wharfage, harbour dues, lift on/lift off charges), and cargo owners, who incur landside fees (via their designated transport company). Landside charges include expenses such as terminal access fees, vehicle booking fees, and so on. It is these charges which are on the rise, again!
In the case of landside charges, we are left with a situation where those who get to decide don’t pay, and those who do pay (our clients), don’t get to decide.
Yes, the terminals are in business to make a profit and that is what they should be doing for their owners and shareholders. However, like all businesses, they should be negotiating these charges, not merely taking advantage of cargo owners, who effectively have no say.
Regrettably, the announcement of substantial increases in landside terminal charges has become commonplace. Industry bodies, such as the FTA, deserve acknowledgment for their advocacy efforts on behalf of the freight forwarders and customs brokers who have no choice but to pass these increases on to their customers – the cargo owners.
Despite these ongoing efforts to advocate against these increases, the question remains: will it ever change? Or are our landside fees another contributing factor to the cost of doing business with Australia.
