The Australian Competition and Consumer Commission has issued a draft determination proposing to authorise* the Container Logistics Action Group to engage in collective negotiations with the stevedores at Port Botany, ACCC Chairman, Mr Graeme Samuel said today.
CLAG is a group of container carriers, customs brokers and freight forwarders involved in the transportation of containers to and from Port Botany. The proposed authorisation will enable its members to collectively negotiate terms of access to the terminal, as well as the price of a range of services supplied by the stevedores, such as container storage charges.
"The ACCC notes that the features of the industry have created a significant imbalance of negotiating power between stevedores and container carriers".
The ACCC has assessed CLAG's proposal and considers that any anti-competitive detriment that may flow from it is likely to be minimal.
"The ACCC is satisfied that the proposed arrangements are likely to result in a net benefit to the public. In particular, the arrangements will give transport providers a greater opportunity to provide input into dealings with the stevedores. The ACCC considers that increased input is likely to result in more efficient outcomes for the import/export supply chains.
"The ACCC notes that the authorisation will in no way compel CLAG members or the individual stevedores to participate in the proposed collective bargaining discussions".
The ACCC will now engage in a further round of public consultation before proceeding to make a final decision on the proposed collective bargaining arrangements.
Copies of the draft determination are available on the ACCC's website.