Coastal Shipping Reforms Create Contrary And Adverse Outcomes

by Jim Wilson - last modified Jun 12, 2012 01:00 PM

Minister for transport and infrastructure Anthony Albanese has been the main proponent of the reforms.

Maritime executives argue that the system as a whole could also work to the disadvantage of domestic carriers. Shippers may end up moving large, heavy or unwieldy cargo by road rather than by ship. And Australian cargo shippers look likely to be put at a disadvantage as carriers reduce service offerings.

For instance, box carriers are mulling over whether to continue carrying dangerous goods.

They will have to notify the Department of Infrastructure and Transport when applying for, or varying, licences when it is envisaged that dangerous goods may be carried.

One box carrier executive told Lloyd’s List Australia that the line may stop accepting dangerous cargoes from shippers: “it’s not worth the drama,” the executive said.

Break bulk carriers, especially tramp operators, envisage that the requirements for being granted a one year Temporary Licence – which involves notifying bureaucrats of an intended a minimum of five voyages in advance – will likely result in them being unable to offer a service.

“If a bit of machinery has to be moved urgently and there are issues with the licenses, and no one has the right General or Temporary Licence, and if alternative Temporary or General Licence operators don’t the right vessel, it will probably go by road.” Meanwhile, third parties will have the right to see – and challenge – each application for a Temporary Licence.

“This gives the shipper the chance to argue that the domestic freight option is way too expensive and that he can say to the minister that he can’t afford it.

"The whole system could work to the disadvantage of the domestic carrier,” one maritime executive argued.

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