There has been major change in the Australian stevedoring industry since 1998, according to the Australian Competition and Consumer Commission's fifth Container Stevedoring Monitoring Report.
"The report confirms there have been significant productivity improvements since the ACCC began monitoring the stevedoring industry, with last year's productivity levels* being the highest ever achieved", ACCC Chairman, Mr Graeme Samuel, said. "The past five years has also seen the cost of using stevedoring services decline in real terms by 18 per cent".
The ACCC is also reporting increased average revenue** across the industry, stabilisation of costs and increased margins.
"The report suggests the rise in revenue was not attributable to the core business of stevedoring; loading and unloading containers", Mr Samuel said. "Instead, the increase has been derived from other activities such as berth hire, container storage, maintenance and repositioning, quarantine inspection and other ancillary services. Average revenue for lifting containers has recorded only a slight rise.
"Major cost categories directly associated with stevedoring activities, such as labour, equipment and premises have all fallen across the industry. It appears that increases in costs associated with the stevedores 'other' activities that are responsible for total unit costs remaining constant".
As a result of increases in unit revenue while unit costs remained constant, unit margins continued to rise during 2002-03, with margins rising from $34 per foot equivalent unit (TEU) last year to $39 per TEU this year.
"The rise in margins is consistent with the four previous reports which found that industry margins had increased each year because average costs fell more than average revenue".
The ACCC monitors stevedoring revenues, costs and margins to provide the Australian Government and the community with information on the progress of waterfront reforms at Australia's major container terminals. The ACCC was directed to monitor stevedoring charges when a levy was imposed on stevedores to fund redundancy payments.
The Container Stevedoring Monitoring Report No. 5 can be obtained from the ACCC's Melbourne or Canberra offices on (03) 9290 1800 or (02) 6243 1143.
*productivity levels are measured in terms of average crane, ship and elapsed labour rates.
**average costs and revenues are expressed per twenty foot equivalent unit (TEU). The ACCC uses unit revenue as an indicator of stevedoring charges.