Existing working arrangements across Australia's container ports are damaging the country's economic productivity, a new report has revealed.
The Productivity Commission has detailed ports across the country are underperforming due to existing industrial codes and urged the Fairwork Commission to intervene earlier to resolve ongoing disputes.
It also outlines container ports are unfairly charging importers, exporters and trucking companies.
The draft report shows roughly $605 million could be saved by businesses and consumers if work relations were improved, says the commission.
Productivity commissioner Stephen King said Australian ports continually underperform and are costing firms millions.
"Underperformance on Australia's ports directly costs business and consumers," he said.
"Any sustained disruptions to imports or exports magnify these costs across the economy because of the critical role of ports to trade and commerce."
Market power of port companies were also flagged as an issue to what was leading to poorer outcomes.
"Truck drivers have to pay whatever price the terminal operator demands to pick up or drop off a container," Mr King said.
"The shipping lines choose the terminals so they should pay these charges."
The Productivity Commission highlighted restrictive clause within enterprise agreements completely limit the way workers and equipment could be deployed on site.
Major union strikes over recent years have also negatively impacted activity among container shipping ports.
It also outlines further infrastructure is needed to handle bigger ships and freight volumes which are set to rise in coming years.
"Changes to the Fair Work Act and operation of the Fair Work Commission are recommended to tackle protracted enterprise bargaining in container ports and the disruptive industrial action that comes with it," said Commissioner Julie Abramson said.
There are also calls for fees incurred to cargo owners and operators to remedied with a number of legal experts claiming they are unfair terms.
Currently operators have to pay fees to shipping lines when they return containers late due to the port sites being full and unable to house the containers.
