Feds prepare national fleet to set sail

The federal government expects to open applications for shipping companies to join a national strategic fleet capable of servicing regions impacted by emergencies and national crises mid-year.

The service was a recommendation from November’s strategic fleet taskforce report, which followed a WA government report in October recommending more coastal shipping to address supply chain risks.

Transport Minister Catherine King said she expected to make headway towards getting the first vessels in the fleet this year.

“An Australian-flagged and crewed strategic fleet will improve Australia’s future maritime capability by helping get vital goods to affected regions and make us less reliant on international shipping in times of national crisis and emergency,” she said.

“My department has commenced targeted consultation with vessel operators and unions to seek their views on participation in the fleet, workforce and skills, and business effects of requisitioning.

“While the strategic fleet will provide invaluable training opportunities and employment pathways, it alone will not overcome all the barriers to growing the Australian seafaring workforce.”

Ms King said support to boost the maritime workforce and improved monitoring of seafarer wages were still in the works.

The move has drawn mixed reaction from industry, with Shipping Australia in November dubbing it the “strategic failure fleet”.

“The federal government-owned fleet, Commonwealth Lines, failed (1928),” Shipping Australia said at the time.

“Another national government owned company failed (several times in fact; it last failed in 1998).

“The Coastal Trading Act (2012) had six objectives to boost Australian shipping but it succeeded in destroying it, driving ships, jobs, and industry away from Australia.

“It failed.”

Freight & Trade Alliance director Paul Zalai said there was merit in a strategic fleet due to geopolitical tensions and natural disasters but was wary of the government signing a “blank cheque” to achieve its goal.

Western Australia’s 83-year-old state shipping service ceased in 1995, with then-premier Richard Court revealing it was running at a loss of $50,000 a day.

Part of the reasoning behind its axing was a breakdown in negotiations between the government and Maritime Union of Australia to reduce stevedoring costs by $500,000.

A North West service was started up by the Court government after the state service was axed and ran until 2013.

The Labor Party went to the 2021 state election with a platform to work with the federal government to re-establish Australian shipping and seafaring.