Record Profits for Australian Stevedores Amid Market Concerns
Australia’s stevedores are experiencing unprecedented levels of profitability, charging historical high prices despite having ample spare capacity in key ports. According to the ACCC’s Container Stevedoring Monitoring Report 2024-25, this trend has persisted even as costs and productivity have remained relatively stable.
Stevedoring Profits on the Rise
In 2024-25, the profits in the stevedoring sector have increased for the fifth consecutive year, reaching unprecedented levels across various measured metrics. Notably, the total price charged per container has outstripped any levels observed since the ACCC began its monitoring efforts 27 years ago.
The ACCC reported that total real revenue per container lift—a proxy for the total price paid by customers—rose by $21.93 (5.5%) in 2024-25, with a substantial increase of $68.88 (19.4%) observed since 2019-20, culminating in a historical high of $423.11 per container.
Comparative Profitability
Over the past five years, the real earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the stevedoring industry have surged. Key statistics reveal:
- Operating profit has soared by $457.8 million (130.5%) to a record $808.6 million in 2024-25.
- Operating profit margins increased by 14.5 percentage points, achieving a high of 34.8%.
- Return on average tangible assets has climbed by 29.5 percentage points, reaching 45%.
Comparative analyses further illustrate that, in 2024, the stevedoring industry’s profitability outdid that of the wider transportation sector across all ACCC metrics, and surpassed the industrials sector in several areas.
Concerns Over Market Operations
“These are very high short-run returns for an industry with significant spare capacity at ports,” said ACCC Commissioner Anna Brakey. “Typically, we would expect to see excess terminal capacity placing downward pressure on stevedores’ prices.” This observation raises serious questions about the current market dynamics.
Landside Charges Drive Profit Increases
An important factor contributing to rising prices and profits in the stevedoring sector has been the substantial increase in landside charges. These are fees that transport companies incur for container collection or drop-off.
In 2024-25, stevedores derived 49.5% (or $1.15 billion) of their revenue from these charges, nearly equating to the $1.25 billion total investments made by stevedores over the past eight years. A significant portion of this revenue, over $642 million, came solely from terminal access charges previously termed as infrastructure levies.
“Since 2017, stevedores have collected over $3 billion in terminal access charges,” noted Brakey. “It is concerning that stevedores can raise these charges and, consequently, their profitability, irrespective of market conditions.”
This places a burden on trucking companies, which subsequently pass these costs onto importers and exporters, leaving them with little negotiating power or alternative options. “Without effective competitive constraints in place, targeted reform is imperative to safeguard Australian households and businesses from escalating costs,” Brakey emphasized.
Understanding Stevedoring Revenue
The ACCC has been monitoring the container stevedoring industry since 1998-99, under a directive from the Australian Government. This process involves overseeing the pricing, costs, and profits associated with container stevedores across five major Australian container ports: Adelaide, Brisbane, Fremantle, Melbourne, and Sydney.
Stevedores implement fixed charges, including terminal access fees and vehicle booking fees on transport operators for each laden container, in addition to a range of incentive-based and ancillary charges, collectively classified as ‘landside charges.’
Source: ACCC
