Empty Container Detention

The transport sector, terminals, and many other supply chain participants have been feeling the crippling impacts of the current Omicron outbreak since January. High absenteeism and extensive testing regimes have added to workplace pressures and increased operational costs.

We are also seeing delays of up to 4-6 weeks in container releases that are subject to biosecurity treatment or inspection, with many approved arrangement facilities at capacity with limited operational staff, including the unavailability of departmental biosecurity officers to deal with the increasing volumes.

Other scenarios relate to “vessel bunching” which causes a congestion of containers needing to be cleared from the terminals prior to the 3-day free time expiring. Vessels being delayed and then arriving on top of each other creates a backlog at importers yards trying to unpack multiple containers and have them returned to the empty container parks, also under pressure, to avoid detention.

Additionally, the recent weather events and impacts on the transport sector and logistics operations in affected areas will also add further congestion and delays in returning empty containers.

While the above circumstances add to the supply chain costs, the emerging trend is that shipping lines are cashing in on detention charges caused by such delays.  All the major shipping lines have steadfastly refused a request from Freight & Trade Alliance for a short-term blanket extension of detention free days due to the factors being outside their control.

Many transport companies have also put freight forwarders on notice that regardless of the reason for any detention, the transport companies will not accept any responsibility for any additional cost and charges.

In the current operating environment, there will no doubt be many scenarios whereby the delay in returning empty containers within the free timeframe cannot be avoided.  Therefore, we strongly recommend that empty containers are made available for collection at least 2 business days before the end of the free period to avoid additional detention charges.

FJT will continue working hard to manage and minimise the impact of the above issues on your empty containers as much as possible by raising concerns and seeking fair and collaborative operational practices from all relevant supply chain participants during these extreme and challenging times.