Australian Competition and Consumer Commission – DP World Infrastructure Surcharge (NNF 2017/069)
The CBFCA today participated in an industry conference with the Australian Competition and Consumer Commission (ACCC) in relation to the DP World Australia Infrastructure Surcharges. There was considerable discussion (and angst) amongst the industry parties in relation to their Submissions and the position of the ACCC in relation to its ability to intervene. One of the issues referenced was misuse of market power and the inability of downstream service providers in landside logistics being able to effectively negotiate solutions to such pricing. While industry representatives reinforced their positons as to marketplace issues as well as the inappropriateness of the increased charges, the ACCC continued to default to the legislation. While they acknowledged competition policy aspects, they were constrained by the legislation.
While they ACCC noted that there was Government intention as to changes to the legislation (and it understood the frustration of industry), in the main, they were probably not able to intervene, notwithstanding the ACCC’s deep understanding of the Container Stevedoring Industry as a result of their Monitoring Reports which they have undertaken since 1999.
In essence, notwithstanding the downstream implications and for the economy as a whole in relation to past through costs to consumers, the CBFCA perceives that little, if anything, will come from the industry's interventions, unless there is intervention direct with Government in New South Wales and Victoria (as to public policy) and/or actions taken by individuals as to their VBS contracts and unfair contract terms. The ACCC advised that this was an aspect it could address.
So in the final wash up, it appears moral indignation and industry concerns will not carry the day!