Shipping charges to hit farmers
Sourse: Dairy Australia
Shipping companies are being hit with "unregulated" surcharges of up to $4000 per container as the Middle East conflict continues.
Agricultural bodies warn these massive costs are being pushed down the supply chain and will eventually hit the farm gate. "We live in an ocean of cost and risk being pushed down on us," Australian Dairy Farmers president Ben Bennett said.
"Eventually, it's going to lean on the shoulders of us farmers - that's where it always goes."
The Freight Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) said red meat and livestock exports to the Middle East and North Africa, which reached a record $2.2 billion last year, were most affected.
"Exporters are facing emergency conflict, war risk and deviation surcharges of up to $US4000 per container, often imposed without notice and after cargo has been accepted," FTA/APSA freight policy and operations general manager Tom Jensen said. "Some members are confirming literally hundreds of containers affected with conflict/war-risk surcharges alone.
"Dollar-wise, one member has been affected to the tune of $US600,000". That figure did not take into account costs with recovering and handling containers with deviated voyages or spoiled shipments. The increased costs come on top of a sharp spike in fuel and fertiliser prices.
Mr Jensen said dairy and fresh produce have also been hit by the charges. Australian Dairy Products Federation chief executive Janine Waller said dairy exporters are facing increased international freight costs of up to 50 per cent.
"The Australian dairy industry exports about 36pc of our milk production, making reliable access to the international market critical for processor viability and farm gate returns," Ms Waller said.
Victorian Farmers Federation president Brett Hosking said both exports and imports would be affected. "Nobody comes out the other side of this and says, 'it's been good for us'," he said.
AUTHOR: Andrew Miller
"Eventually, it's going to lean on the shoulders of us farmers - that's where it always goes."
The Freight Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) said red meat and livestock exports to the Middle East and North Africa, which reached a record $2.2 billion last year, were most affected.
"Exporters are facing emergency conflict, war risk and deviation surcharges of up to $US4000 per container, often imposed without notice and after cargo has been accepted," FTA/APSA freight policy and operations general manager Tom Jensen said. "Some members are confirming literally hundreds of containers affected with conflict/war-risk surcharges alone.
"Dollar-wise, one member has been affected to the tune of $US600,000". That figure did not take into account costs with recovering and handling containers with deviated voyages or spoiled shipments. The increased costs come on top of a sharp spike in fuel and fertiliser prices.
Mr Jensen said dairy and fresh produce have also been hit by the charges. Australian Dairy Products Federation chief executive Janine Waller said dairy exporters are facing increased international freight costs of up to 50 per cent.
"The Australian dairy industry exports about 36pc of our milk production, making reliable access to the international market critical for processor viability and farm gate returns," Ms Waller said.
Victorian Farmers Federation president Brett Hosking said both exports and imports would be affected. "Nobody comes out the other side of this and says, 'it's been good for us'," he said.
AUTHOR: Andrew Miller
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