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Hits:Updated:2022-11-18 09:11:18【Print】
Svitzer Australia, the tugboat operator owned by Maersk, has given tugboat workers and their union negotiators at all ports it serves notice of a stop-work period that will begin at 12 noon eastern daylight time on Friday 18 November and continue indefinitely.
This will affect shipping operations at ports in major Australian cities and regions including Queensland, New South Wales, Victoria, South Australia and Western Australia.
Svitzer is understood to be Australia's largest tug operator, carrying out about 50,000 towing operations a year, meaning the stoppage is likely to halt much of the container traffic, raising fears of widespread disruption to the supply chain before Christmas.
Those barred from working include 582 employees covered by the company's 2016 National Tugboat Enterprise Agreement, who belong to Australia's three largest maritime unions: the Australian Maritime Union (MUA), the Australian Institute of Maritime and Power Engineers (AIMPE) and the Australian Maritime Officers Union (AMOU).
More than 250 labor disputes over pay and working hours have led to nearly 2,000 hours of work stoppages on Australian tugboats since Oct. 20, including idling tugs or crew refusing to work overtime, according to Australian media reports.
In a strongly worded statement, the national secretary of the Maritime Union of Australia, Paddy Crumlin, said Svitzer Australia's unilateral shutdown meant a "massive escalation" of the Labour dispute, which he said would "undermine the country's ability to provide tug services, And throw Australia's maritime supply chain into disarray."
At 17 ports, 40 percent of container freight will be affected
The indefinite suspension by Svitzer Australia will bring towing opportunities to a complete halt at 17 Australian ports, including shipping operations at numerous Australian ports in Queensland, New South Wales, Victoria, South Australia and Western Australia.
The services of tug giant Svitzer Australia are understood to be crucial to moving container ships into and out of Australian ports.
Patrick Terminals, which operates at the Australian container port, said the shutdown of Svitzer Australia's tugboat operations would disrupt the processing of 10,000 TEUs per day, or the equivalent of about 40 percent of container freight in and out of Australia.
Similarly, DP World noted that Svitzer Australia handles 70 per cent of ships entering the terminal and that a shutdown of tug services would significantly affect terminal operations and the seaborne supply chain.
Svitzer Australia's stop-work has been widely criticised by the industry, with calls for the Australian government to take action to safeguard ships in and out of port and prevent disruption to Australia's maritime supply chain.
Nicolaj Noes, managing director of Svitzer Australia, said: "Our aim has always been to conclude a new enterprise agreement and we have negotiated exhaustively in good faith. We had hoped there would never be a work stoppage, but now we have no choice but to respond to the union's ongoing and damaging strike action."
The union says the tugboat operator, Svitzer Australia, is holding up talks between the two sides.
At the same time, terminal operators find themselves caught between the tugboat companies and the maritime union, which is calling on the Australian government to intervene to prevent a shutdown of the tugboat service and eventually resolve the contract dispute.
David Elliott, transport minister for the state of New South Wales, said the action by Svitzer Australia would bring the country's major ports to a standstill, threatening the supply of consumer goods, supermarket products and agricultural exports.
He also said the state was reviewing the situation and intervening where possible. Meanwhile, TonyBurke, the government's industrial relations minister, is using the threat of strikes to push through pending legislation to overhaul Australia's Labour laws, strengthen the position of unions and overhaul Fair Work Australia.
The shipping company issued a warning
The shipping company Maersk posted a warning on its website saying strike action notices against Svitzer had recently been issued at all Australian ports. Maersk says it is assessing the situation and making arrangements to mitigate the impact on your shipment.
So far, this has affected the following vessels:
The shutdown of tugs at Australian ports could further disrupt supply chains amid global supply chain tensions. The strike could pose potential risks to shippers and even cause chaos in the port area.
Finally, I would like to remind the freight forwarders who are shipping to Australia recently to pay close attention to the delay and impact of the strike on the cargo transportation.
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