Strikes, backlog! Maersk suspends operations at multiple terminals in Australia

Strikes, backlog! Maersk suspends operations at multiple terminals in Australia

On January 4, DP World Australia received a request from the CFMMEU (Australian Maritime Union) for the Ports of Brisbane, Sydney and Melbourne.

Additional protective industrial action notices have been issued at each terminal in the Port of Fremantle, with strike action understood to last until January 15, 2024.

Maersk said it will suspend its operations at the Port of Brisbane, Sydney and Melbourne for a certain period of time, but will not be affected by the strike at the Fremantle Port for the time being.

It is understood that the Australian union has been participating in strike actions since October, conducting work stoppages and 24-hour strikes to fight for an 8% annual wage increase. This strike action has resulted in a backlog of approximately 45,000 containers, causing huge losses.

It is reported that these shutdowns mean that ships carrying local products such as imported home appliances and pharmaceuticals, as well as exports of local products such as red meat and fresh fruits, will face delays of 10 to 12 days in shipping products overseas.

Brian Hack, managing director of freight forwarder EES Shipping, said the economic and reputational damage to Australia would only worsen if the strike did not end soon.

Hack added: “This is no longer just a problem for DP World and the Australian Maritime Alliance, Australian businesses are being significantly impacted and are losing money due to ongoing delays and uncertainty.

Affected by this, for goods on Australian routes, freight forwarders and cargo owners must pay attention to ship schedules and port calls before shipping to avoid ship adjustments affecting cargo transportation efficiency.

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