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Friday, April 18, 2014

Cheaper Australian coastal shipping services ahead...finally!

Back in June 2012 I posted this blog about the then Federal Government's changes to shipping legislation that they somehow thought would revitalise shipping in Australia and lead to more coastal services. 

I reported in that post that the new legislation was actually having the reverse affect as many ship owners ceased their Australian coastal shipping services. That legislation lead to them being burdened with additional government charges, increased salaries for foreign crew who had to be paid at Australian award rates and significantly more red tape and paperwork to deal with. The few carriers that still offered a service were forced to pass on these costs and rates were hiked making shipping some cargo by sea more expensive than road or rail.

The bottom line was that my clients businesses were burdened with additional transportation costs that they could ill afford and Australian shipping wasn't revitalised one iota and indeed it regressed in my opinion.

This month the new Liberal Government announced a review of this legislation and released this option paper entitled "Approaches to regulating Australian Coast Shipping".



Sensibly this options paper contemplates removing all regulation of coastal shipping and to actively minimise all industry burden and costs.

Depth Logistics' is already gearing up our Australian Coastal Shipping Service in preparedness for our clients directing more of their domestic cargo back to sea. Furthermore we will be making a submission firmly advocating, on behalf of our clients, the negative impacts the current legislation has had on them and explaining why it MUST go. If you would like any particular concern, idea or view you may have expressed on you or your companies behalf, then please either make a comment in this blog post or contact us.

Stay tuned to this blog or follow +Depth Logistics or +Brad Skelton on Google+ for updates as this review unfolds. 

Rest assured Depth's team and I will do everything we can to influence the right outcome for our clients and industry.

All for now,

+Brad Skelton 

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