The ACCC indicates potential government action to tackle record terminal access charges at Australian ports amid rising profits for stevedores.
Australia's competition watchdog has warned that government intervention may be necessary to address record high terminal access charges at the nation's ports, according to a report from London's S&P Global.
The Australian Competition and Consumer Commission (ACCC) stated in its latest monitoring report that stevedores are charging more per container than at any time in the 27 years of oversight, despite having spare port capacity and stable costs. The commission suggested that policy or regulatory changes might be required to rectify market failures and protect households and businesses.
The ACCC plans to discuss its findings with federal officials early next year. Tom Jensen, general manager of the Freight & Trade Alliance, remarked that the report confirms industry warnings that stevedores are increasing prices while productivity remains stagnant. He emphasized that the regulator has identified the issue and that government action is now essential.
The report revealed that operators earned operating profits of US$38 million (A$809 million) in 2024-25, marking a 131 percent increase over five years, with margins reaching a record 34.8 percent. Terminal access charges amounted to $426 million in the same year, totaling over $2 billion since 2017-18, which is 2.5 times the total investment by operators.
Mr. Jensen stated that these figures indicate fees are being utilized as a profit lever rather than for cost recovery. The ACCC noted that shippers and cargo owners have little choice but to pay these charges, leading to potential market failure and adversely affecting businesses and consumers.
The report did not account for the latest increases in terminal access and empty container fees set to take effect on January 1 at DP World, Patrick Terminals, and Victoria International Container Terminal, with Hutchison Port Holdings expected to follow on February 1. Terminal companies did not immediately respond to the findings.
