General

Australian freight forwarders have recently expressed concern that these major shipping companies (including Hapag-Lloyd and Maersk’s subsidiary Hamburg Süd) are planning to establish a customer database to deal directly with shippers and completely get rid of agents. .

According to overseas media reports, a freight forwarder stated that some carriers refuse to accept any more cargo unless the freight forwarder agrees to book domestic inland truck transportation with the carrier, which requires the agent to provide the shipper’s detailed information.

However, it is difficult to find the next cabin, and in order to obtain available space, freight forwarders have no choice but to agree to these terms.

A spokesperson for Hapag-Lloyd denied the existence of coercion: "Inland transportation is indeed part of the service we provide in Australia, but we will never insist that customers use this service in any form to ensure our service. Or space reservations."

The Hamburg Süd statement also rejected the claim that the freight forwarder was forced to disclose customer data. “At present, our available space is tight on a global scale. In intra-Oceania trade, we are facing severe capacity due to the interruption of operations throughout Oceania. Due to the limited capacity, we are currently unable to accommodate additional long-term business. We are sorry that not all booking requests can be satisfied, and we are doing everything we can to restore the sea freight logistics to normal levels. Our Hamburg Süd Instant products (called by Maersk Spot) is still available for booking by any customer without the use of Hamburg Süd trucks. Therefore, we did not see where your question is."

nulltheless, freight forwarders claim that, so far, this carrier strategy has been limited to trade from Australia to New Zealand. As ships have been redeployed to more profitable trade routes in the northern hemisphere, shipping space is now very valuable.

The freight forwarder claimed, "What we worry about is that after 6 to 12 months, when the market returns to normal, the operator will use the database to directly contact our customers for a quote. Then, who will look for a freight forwarder?"

The freight forwarder said that the carrier’s actions were “predatory” and violated Australia’s competition laws. Australian freight forwarders have contacted their representatives in the Freight and Trade Alliance (FTA) to submit a statement to the Australian Competition and Consumer Commission (ACCC).

Paul Zale, director and co-founder of the Freight and Trade Alliance (FTA), member of the Australian Peak Shippers Association secretariat and director of the Global Shippers Forum (GSF), believes that the threat from carriers is real. He Explained, “Obviously, everyone in the Australian supply chain is facing threats, and the vertical integration trend of shipping companies, stevedores, etc. is increasing. Although the interruption of international trade and logistics is inevitable, we will pay more attention to ensuring that all The activities are in compliance with Australian law."

An ACCC spokesperson said the committee cannot comment on specific companies or industries, but it is responsible for investigating the competition provisions of the 2010 Competition and Consumer Act. Businesses usually have the right to set the terms of the goods or services they provide, including as part of a bundling or bundling arrangement. However, in limited circumstances, this may violate competition laws, especially if the arrangement is done by a company with strong market power, and such behavior can severely harm the competition process.

The FTA will escalate the problem by calling for "an independent federal government review of international shipping practices and the introduction of maritime regulatory agencies to oversee reforms", which will be carried out concurrently with the FTA's investigation of fragile supply chains submitted to the Productivity Commission.

In addition, they stated that Australia has world-class manufacturers and producers, supported by skilled customs brokers and freight forwarders, and is ready to take advantage of the opportunities created by free trade agreements and economies that have recovered from Covid-19. A level playing field is needed to ensure that all members of the supply chain can compete and continue to effectively provide services to the Australian trade.

James Hookham, senior executive officer of European GSF, pointed out that a similar situation occurred in Europe in the 1990s, when it was considered anti-competitive under EU law and led to the end of the operator conference system.

This latest move by the carrier will enable them to understand the movement of the shipper, and there is no protection of the privacy of data owners in the competition rules. It will allow operators to reduce middlemen, and they can share this data under the group exemption rules that allow lines to form alliances.

This is very sensitive business information. If the carrier knows how much cargo is expected, they can manage the trade capacity and increase the freight rate. There is a real need to formulate a data protection bill for the shipping industry.

In fact, this problem does not only exist in Australia. It will be a problem of the global supply chain. Freight forwarders in all parts of the world will face this problem. Once it occurs, shippers will rely more on the carrier, and the phenomenon of freight rate manipulation will become more obvious. !