Island state loses last international direct link for containers
By Rob McKay | February 16, 2011
Tasmanian shippers and international exporters face substantially higher freight costs and slower transit times following the Asia Australia Alliance containerline consortium’s decision to halt weekly calls at Bell Bay and Fremantle.
Made up of ships belonging to Malaysian International Shipping Corporation (MISC), Mitsui OSK Lines (MOL), Pacific. International Line (PIL) and Orient Overseas Container Line (OOCL), the consortium previously linked Tasmania’s only designated container port with Port Kelang in Malaysia and Singapore.
It offered coastal, dry and refrigerated container services.
Though Fremantle is serviced by other consortia, the AAA FA1 service is Tasmania’s only direct link with the major container hubs of Southeast Asia.
The island state’s international trade will, from April 24, need to be transhipped through Melbourne, though AAA will increase its calls to Melbourne to twice a week.
While the move is a major blow to Tasmanian exporters that could perhaps double shipping costs to Southeast Asia, it will also reduce somewhat the competition between lines involved in the Australian coastal trade.
It comes at a time when the Canberra is looking to foster domestic coastal shipping options to address a chronic maritime skills shortage through tighter controls over coastal service permits for international ships.
This is an issue high on the agenda of the Maritime Union of Australia but one whose implementation is of immense concern to freight forwarders reliant on the cheap rates but sometimes erratic service of international lines.