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  • Marine Protect

Industrial Action at Australian Ports Threaten to Impact Cargo Movements

The Maritime Union of Australia (MUA) has notified terminal operator DP World it will continue a series of protected industrial actions at its four facilities through to the end of the third week of November, threatening disruption to supplies ahead of Christmas. DP World operates terminals at Sydney, Melbourne, Brisbane and Fremantle. Wharfies had held a series of work bans and stoppages during October at these terminals.

At the heart of the dispute is a proposal from DP World Australia’s management for a flexible roster system, which it claimed would be “better suited to the needs of its customers”. The MUA contends that the new roster would mean a dramatic increase in the number of weekend hours its members would work and effectively represent a significant pay cut. The MUA is also calling for a 7.4% pay increase to counter the cost of living crisis - which rival terminal operator Patrick awarded its wharfies earlier this year.

Daniel Morrison, NTI’s Head of Marine Portfolio, said strikes not only cause huge disruptions to supply chains and economies but they also have the potential to cost importers & exporters a considerable amount of money.

“Strikes are not always something that immediately come to mind when thinking about possible interruptions to shipping and it probably isn’t high on many people’s priority lists, but it can have a significant impact if your cargo is caught up in the middle of a port strike.

“The best that importers and exporters can do to protect their business and cargo under these circumstances is to have appropriate insurance.

“Whether a strike is happening here or on the other side of the world, the nature of sea trade means that supply chains will slow and anyone who calls at that port or has imports from or exports to that country, could be affected” says Daniel.

NTI Marine Protect’s Inland Cargo & Combined Cargo policies provide for damage to insured cargo caused by strikers and locked out workmen and includes an extension for Strikes Diversions Expenses. The Strikes Diversions Expenses extension can provide cover for up to $50,000* of expenses incurred in the event goods are discharged at a port other than the intended port of discharge due to a strike, protecting our customers against unforeseen costs to have their goods delivered to the final destination from the alternate port.

Contact your local NTI representative today to lodge a claim or call our specialist team on 1800 684 669.

Marine Protect insurance products are administered on behalf of the insurers by NTI Limited ABN 84 000 746 109 AFSL 237246.

* the lesser of $50,000 or 20% of the Limit of Liability or Sum Insured. Refer to the Inland Cargo and Combined Cargo product Policy Documents here for more information. 

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