In August last year we reported on the Australian federal government’s moves to tighten rules for cargo handlers at our ports and airports, closing loopholes that allowed serious criminals to access secure areas and carry out inside jobs.
In related news, this week the Australian Competition and Consumer Commission (ACCC) has teamed with the US Department of Justice and Federal Bureau of Investigation, Canadian Competition Bureau, NZ Commerce Commission, and UK Competition and Markets Authority to form Five Eyes, an authority tasked with fighting illegal supply chain behaviour.
The five competition authorities will focus on illegal conduct, including collusion, in global supply chains, in light of the rocketing freight rates, costs which are being passed onto consumers.
“The global freight supply chain is a complex network involving many jurisdictions, so naturally detecting anti-competitive conduct requires strong international partnerships,” ACCC Chair Rod Sims said.
The ACCC said increased demand for containerised cargo and heavy congestion across the global supply chain have caused disruptions and delays to most parts of the economy, with freight rates on key global trade routes now seven times higher than two years ago.
“Australia is an open, trade-exposed economy, and like the other international agencies in this working group, we have a very strong interest in preserving strong competitive markets for global trade,” Sims said.
In an Australian context, exporters are fighting over available equipment and capacity to reach key markets. Importers are failing to get regular supply, resulting in the emergence of new models of onshore stockpiling and resultant inflationary pressures being felt across the Australian economy.
In parallel, foreign owned shipping lines are proudly reporting multi-billion-dollar profits, with many using their new-found wealth to make strategic vertical integration supply chain investments and some now refusing to enter contractual arrangements with third party freight forwarders and leaving exporters and importers at their mercy.
This week’s announcement follows a speech by the Australian Prime Minister at the recent World Economic Forum calling on world leaders to do more in the form of new partnerships between countries, governments and businesses to increase the resilience of global supply chains.
As licensed Customs Brokers and International Freight Forwarders, Colless Young offers you professional advice on your international trade and shipping activities. We’ll give you correct advice at all points along the supply chain, including current shipping schedules, freight rates and terminal fees. We provide a complete range of logistics services, both air and sea cargo, for your imports and exports at all Australian ports and airports.
