Logistics News

Shipping line ALP wont float says Verus CEO

Meyer sees holes in the hull of Albanese fleet pledge

 

The federal opposition’s strategic fleet concept faces insurmountable hurdles, according the freight forwarding boss Jackson Meyer.

The intervention follows Australian Labor Party (ALP) leader Anthony Albanese’s latest shipping proposal, revealed earlier this month, for an emergency fleet of ships in a bid to secure more supplies for the country.

If elected, the idea would be for an Albanese-led federal government to build a strategic fleet of Australian ships to protect the nation’s supply chains in the event of future natural disasters.

It would see 12 ships established to ensure stable access to fuel and essential supplies.

Verus Global CEO Meyer noted that the proposal would see the first Australian shipping fleet hit our ports since the seven-year sale of the Australian National Line (ANL) sold by the Hawke-Keating government to French shipping company CMA CGM in a seven year process starting in 1991, would be feasible with current capacity restraints.

“What we’re seeing in the market at the moment is that shipping lines around the globe are maximising the more lucrative trade lanes over Australia, leaving surging demand increasing with no release of supply for much needed goods into Australia,” Meyer said in a statement.

“Shipping lines over the years have formed alliances across the globe which has created a monopoly market with incredibly high barriers to enter the market due to fierce competition.

“If ships can be secured for to create a fleet, the government will then need to consider how long it will take to prepare the ships for service, what ports the ships will call, how they plan on calling areas with political instability (China) and additional costs including the rising prices of fuel and docking in international countries as an unrecognised carrier.”

Consistent shipping disruptions and the impact of the latest Covid outbreak has triggered current supply chain delays through factory shutdowns, port congestion and container shortages in conjunction with ongoing labour shortages and temporary workforce closures.

“The effects of the Omicron variant on the industry have added further strain on the supply chain and we aren’t likely to see the disruptions ease until at least November 2022, with levels of stock diminishing and a lack of workforce to replenish shelves the effects are ongoing. 2022 will ultimately be a repeat of 2021 with the shipping lines continuing to dictate the market and profiteer,” Meyer said.

 

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