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Trade chaos: Dejavu on the Australian waterfront with port strikes

WHILE it is no secret that the shipping industry is exhausted by the unpredictable disruptions that COVID-19 has inflicted, Australian freight companies are now dealing with a new round of hurdles this week.

The Maritime Union of Australia (MUA) has begun a series of work stoppages with Port of Melbourne on strike, and an upcoming strike planned at Sydney International Container Terminals on July 9 set to cause lengthy delays. 

Jackson Meyer, CEO of Verus Global, an international freight forwarding company has been directly affected. 

“The Port of Melbourne strike has resulted in significant shipping delays. Containers are taking double the amount of time to process once they hit our shores, and the impact of the local pressure will affect global markets. The situation is at a critical point with the Christmas end of year peak season only a couple of months away,” Mr Meyer said. 

To add to the frustration, an increasing number of shipping lines are now directing their containers be de-hired directly to nominated stevedore terminals. This inefficient process has been driven by the lack of capacity at empty container depots in Melbourne, creating a considerable degree of stress on fleet operations to maintain delivery integrity, and additional fees charged. 

“The Port of Melbourne strike has pushed container importers pricing up from an already astronomical price, brought on by the global pandemic, to an industry that is very much hurting. The demand is impossible to keep up with, the delays are imminent and will be ongoing, especially with the announcement of a Sydney strike this week,” Mr Meyer said.  

He said the industry has been warned to expect further unforecasted and increased fees. Given the new restrictions and the strict policies placed on local providers, in addition to the historically high freight levels across all global markets, and increase on local charges updated almost daily, importers are unable to retain their original selling prices and will ultimately have to pass on these costs to the customer. 

Low cost industries such as packaging are being hit the hardest, with high volume, low margin goods absorbing the on-costs of the unprecedented climate, with no endgame in sight. Whitegoods and highly sought-after household items during the pandemic, such as furniture, continue to remain strong and in demand.

Large appliances now command a spot rate up to 41 percent of the cargo value, and small appliances command up to 27 percent of the retail value. 

“In the monopoly market of global shipping and with strong alliances, freight rates have become too lucrative to retain previously agreed contract rates on long term deals," 
Mr Meyer said.

"If contracts are not renewed, or have been partially slashed, the importer finds themselves paying up to six times as much as they initially forecasted. It’s clear that we are now at a point where an increasing range of cargo owners quite simply will not be able to sustain their business, at the currently high freight rates, and that’s a major issue for the industry."

About Jackson Meyer 

Award winning entrepreneur and Forbes 30 Under 30 Alumni, Jackson Meyer established Verus Global to bridge the gap between global giants and local small enterprises in Australian logistics, and continues to expand its networks globally. As group CEO and director, Mr Meyer manages teams across 15 global offices, located in Australia, China, Hong Kong and the United Kingdom. At just 25 years of age, Meyer has driven Verus Global to turnover of $130 million in 24 months.


About Verus Global
Established in 2019, Verus Global is an international freight forwarding company that uses cloud-based technology to increase the efficiency and transparency of shipping processes for clients across the globe. Co-founded by group CEO and director of Verus Global, Jackson Meyer, the company is based in Australia as well as operating international offices in China, Hong Kong and the UK. A meteoric rise to success, Verus Global has generated A$74 million in just two years and the company continues to excel in customer satisfaction and business success. www.verus-global.com

 

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Superannuation sector scrutiny as reforms take effect

WITH THE ‘Your Future, Your Super’ superannuation reforms having now come into effect the House Economics Committee will hear from key players in the sector at a public hearing via videoconference on Thursday, July 8, to discuss implementation of the reforms.

The hearing forms part of the committee’s ongoing Review of the Four Major Banks and other Financial Institutions. Appearing will be industry funds, including Australian Super, CBUS, Aware, Prime, Maritime, and TWU Super, as well as the retail funds Fiducian, and Equity Trustees (trustee of Zurich Master Superannuation Fund).

Committee Chair, Tim Wilson MP said, "Thursday’s hearing is an opportunity to scrutinise the superannuation sector’s response to the government’s 'Your Future, Your Super' reforms, which came into effect on July 1.

"It’s important that funds are taking their new obligations seriously, and that trustees are working in the best financial interests of members and being transparent about fund performance. In the highly competitive super field, where member assets have now exceeded $3 trillion, Australians should expect nothing less.

"The committee will also continue to scrutinise the impact of COVID-19 on super, as it has for the past eighteen months. In particular, how is the pandemic outlook affecting the funds’ future investment strategies and how they treat their members," Mr Wilson said.

A full program for the hearing is available on the committee’s website.

Public hearing details

Date: Thursday 8 July 2021
Time: 9.15am to 4.30pm
Location: videoconference

The hearing will be broadcast live at aph.gov.au/live.

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Industry and expert panels to give evidence on security of critical infrastructure

THE Parliament’s Intelligence and Security Committee will hold two days of public hearings on Thursday and Friday, July 8 and 9, as part of its Review of the Security Legislation Amendment (Critical Infrastructure) Bill 2020 and Statutory Review of the Security of Critical Infrastructure Act 2018.

The committee will hear from a selected range of industry, union and expert representatives that have engaged with the committee for its review. Opening statements have been received from some witnesses and can be accessed as supplementary submissions.

Committee Chair, Senator James Paterson said, "It is vital that we hear from the companies and industries affected by the proposed framework under the Bill, to ensure that the serious cyber security risks we face can be met effectively with the lowest possible regulatory burden and cost to consumers."

Further information on the inquiry can be obtained from the Committee’s website.

Public hearings details

Thursday 8 and Friday 9 July 2021
9:30am–5pm (AEST)
Committee Room 2R1, Parliament House, Canberra and via videoconference

Programs for the hearings are available on the committee’s website and the hearing will be broadcast live at aph.gov.au/live.

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Indigenous participation inquiry hears from Northern Australia

THE Indigenous Affairs Committee will hear from stakeholders in Far North Queensland and the Northern Territory this week as part of its inquiry into pathways and participation opportunities for Indigenous Australians in employment and business.

Due to recent lockdowns, these hearings will be conducted by conference call.

Committee Chair Julian Leeser MP said Land Councils, Aboriginal Corporations, Indigenous enterprises and business associations, as well as employment service providers and training organisations would be among the many stakeholders appearing before the committee over three days of hearings.

"These hearings will contribute significantly to the existing body of evidence for this inquiry. The Committee looks forward to discussing gaps and opportunities in the workforce and future growth sectors that could result in employment and enterprise options for Indigenous Australians," Mr Leeser said.

"We will be particularly interested to hear from CDP and Jobactive providers about their experiences helping Indigenous people find work. It will also be very useful to learn about continuing challenges to Indigenous participation and how Government can better facilitate these opportunities."

Public hearing details

Date: Wednesday, 7 July 2021
Time: 9.30am to 4pm AEST 

Date: Thursday, 8 July 2021
Time: 9.30am to 4.40pm AEST

Date: Friday, 9 July 2021
Time: 9.20am to 4.50pm AEST

A live audio stream of the hearing will be accessible at https://www.aph.gov.au/Watch_Read_Listen.

Full programs will be available at the inquiry website.

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Public Accounts committee inquires into Defence Major Projects and Commonwealth Financial Statements

THE Joint Committee of Public Accounts and Audit (JCPAA) has commenced two inquiries into important areas of public sector accountability as part of its examination of Auditor-General’s reports.

The Auditor-General's reports on Defence Major Projects and on Commonwealth Financial Statements are critical accountability mechanisms for the expenditure of public funds.

Committee Chair Lucy Wicks MP said the Major Projects Report inquiry was an important opportunity for Parliament to review the cost, progress and technical attributes of major Defence acquisitions, and the review of financial statements gives the committee the chance to examine Federal Government agencies' expenditure.

"The JCPAA scrutinises the governance, performance and accountability of Commonwealth agencies, to examine whether public money is used in an efficient, effective, economical and ethical manner," Ms Wicks said. "The committee has an important role holding Commonwealth agencies to account."

The Committee invites submissions to the inquiries which address the terms of reference. Public hearings will be held in the second half of 2021.

For more information about this Committee, visit its website.

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