Record port profits strain Aussie businesses, consumers
While Australian consumers and businesses are stuck with higher prices, port companies are making historic profits despite operating in growth-stifling conditions, raising concerns of market failure.
According to the Australian Competition and Consumer Commission monitoring report, the profits of Australian loading and unloading companies that load and unload containers at ports rose to a record high of $808.6 million for the fifth consecutive year in 2024/25.
The competition regulator found that total real revenue per container removed reached a historic high of $423.11, up $21.93 on the previous year and $68.88 since 2019/20.
This occurred at a time when the volume handled by most unloaders remained largely the same, unit costs and efficiency were relatively stable, and significant excess terminal capacity was available.
The competition watchdog is concerned about a market failure as carriers Patrick Terminals and DP World are now performing better than when they operated as a capacity-constrained duo prior to the entry of Hutchison Ports.
“We are seeing revenue per lift increasing and profitability improving at a time when we would expect to see this capacity available and also more competition between hauliers to use their capacity,” ACCC commissioner Anna Brakey told AAP. he said.
In recent years, the fees that shippers charge shipping companies that collect or drop off containers have increased significantly.
Charges, known as landside charges, totaled $1.15 billion and accounted for almost half of the sector’s revenue in 2024/25; This left the ACCC concerned that loading and unloading workers were increasing wages “regardless of underlying market conditions”.
“We have seen a rebalancing of fees from shipping lines choosing which stevedore to call, to the landside where the truck operator must use that stevedore,” Ms. Brakey said.
“We are concerned that there is an imbalance between the parties, an imbalance of bargaining power.”
Ms Brakey said rising prices on landside operations increased costs for importers, who would have to absorb some of the additional costs or pass them on to customers, and put exporters at a competitive disadvantage in export markets.
The ACCC report concluded that government intervention is likely required to address apparent market failures and improve Australia’s container shipping supply chain for the benefit of households and businesses.
Patrick Terminals said the company’s investments have delivered major supply chain cost savings and the next wave of planned investment will deliver further benefits.
“We will continue to engage with the industry to develop our service offering over the coming period,” said chief executive Michael Jovicic.
Hutchison Ports said it supports “practical, evidence-based reforms that strengthen efficiency and deliver fair outcomes for businesses and consumers”.
