The below is part of an 'The Australian' online article on 16 March 2021 (should be in this excellent paper tomorrow) re QUB Patricks' competitor, foreign-owned DP World.

While cartel-like actions attract massive fines if the ACCC is able to prove these in court, it wouldn't surprise if QUB increases its access charges at major Australian ports, but perhaps keeps them a bit below DP World if that's possible.

QUB has a market share at the major Australian ports at which it operates of a typical 45 per cent of TEUs (containers) so I'm unsure anyone could assert that DP World 'dominates' the east coast ports' container handling that's so critical to Australia's shops being stocked and a wide range of containerised exports being dispatched.

In theory, above-CPI rises in charges are great for QUB holders but the question as always is 'does this (further) crimp demand? Given the lack of ready alternatives - air freight has always been expensive, and more so during coronavirus, as for instance Tasmania's listed TGR said on one air route its freight costs per kilogram had (amazingly) quadrupled since coronavirus commenced its march.

Freight sector slams port operator DP World over fee increases

DP World’s Swanson Dock terminal in Melbourne.

'The freight industry has slammed a double-digit hike in import and export charges by the country’s largest port operator, saying it is unjustified during a global trade slump.

The International Forwarders and Customs Brokers Association of Australia (IFCBAA) said DP World’s announcement that would increase terminal access charges by up to 13 per cent from May 1 was “out of step with industry and community expectations”.

DP World is Australia’s leading container terminal stevedore, operating terminals in Brisbane, Melbourne and Sydney. The IFCBAA said any increased costs would have to be passed through the supply chain, with the consumer paying more.

Terminal access charges, previously known as infrastructure charges, are collected by stevedores from land transport companies when collecting or delivering laden containers.

“Importers and transport providers should not be paying ever escalating fees landside, which should be borne by shipping lines,” the association said.

Import access charges will increase 13 per cent in Sydney and Brisbane to $126.60 and $124, respectively, per container from May.

Port of Brisbane

Melbourne import charges will rise 11 per cent to $139.20 per container. Export charges will rise 12.5 per cent to $89.50 per container at all three ports.,,

...The Australian Competition & Consumer Commission, which monitors container stevedores at Adelaide, Brisbane, Fremantle, Melbourne and Sydney ports, said stevedores’ revenue and profit margins had increased despite the pandemic causing the largest contraction in container volumes in a decade.

The ACCC said stevedore revenue from terminal access charges had climbed almost 52 per cent last year but conceded ports had increased capital investments in some areas in 2019-20.

ACCC chair Rod Sims said excessive terminal charges would nullify the benefits of greater competition between stevedores in providing services.'