Dear members and affiliates
A quick end of week update on matters of interest and concern to NZCCO.
NZ supply chain under pressure
Council has been monitoring with concern the cascading congestion issues that are impacting many of our members. In order to gain a clearer picture of what’s happening, what’s ahead and how shippers might best manage the situation, Council invited representatives of ICLC to join the NZCCO executive committee at our most recent committee meeting. Our thanks to Mark Scott (COSCO) and Gary Carter (CMA-CGA) for their comprehensive update. It’s clear that the supply chain is in a difficult position with a convergence of disruptive factors at the same time as import and export peaks. In brief, the flow on effect of port strike activity in Australia has seen vessels pushed off window in NZ. This coupled with heightened H&S activity at POAL that has lowered the port’s productivity and the port’s compromised capacity due to the automation project, has created significant disruption at POAL. In turn this has seen vessels diverted to PoT, putting pressure on that supply chain such that the rail link is full and Metroport are restricting volumes. These disruptions have occurred at the same time as strong post-Covid import cargo volumes. The pressure on the supply chain is exacerbated as NZ moves into the peak period for dairy and meat exports.
While the Australian situation is slowly improving, congestion related issues there will remain for some time yet. And while NZ ports are working off schedule to load off-window vessels there are numerous port omissions as the lines try to keep vessels moving.
At this point there is no easy fix. All NZ exporters and importers will need to provide robust forecasts to their shipping lines and lock in contracts and bookings as early as possible to protect their volumes. NZCCO will continue to maintain close communication with ICLC to get as much visibility and heads up of the situation as possible to support shippers contingency planning.
You can hear Council’s perspective on the issue in an interview with Mike Hosking/Newstalk this morning:
NZCCO looks forward to working with the new government
Council is keen to see the new government get underway and with that, rapid progress on delivering the transport infrastructure projects needed to keep the supply chain moving efficiently.
Members should be familiar with NZCCO’s 2020 manifesto for the incoming government which was discussed and ratified at this year’s AGM. This will form the backbone of discussions with the new government – which we expect to commence in earnest as soon as the Transport Minister (whomever that may be) is appointed. A copy of the manifesto is attached for your reference.
An important part of these discussions and briefings is ensuring that relevant Ministers and officials fully understand how the freight supply chain works.
One positive of the election outcome is that we have a very clean result with one Party firmly in charge. There are no handbrakes. We recommend that members study the Labour Party manifesto for an indication of priorities for the next three years. Officials have been told that the Government intends to deliver on these commitments.
Repeal of the RMA, and continuing investment in road and rail are welcome. There are specific transport initiatives in Auckland. Wellington and Christchurch. The commitment to run an evidence based collaborative process with stakeholders to agree the future of the upper North Island’s ports will need to be watched closely. The Workplace Relations commitments are more worrying.
MARPOL Annex VI
Maritime NZ is working to design and implement Marine Protection Rules to give effect to MARPOL Annex VI – Prevention of Air Pollution from Ships. MNZ now has a webpage that provides further information on the project, including the breadth of issues that MARPOL Annex VI covers. See below link.
MFAT Market report
The latest Economic Update for China, prepared by the New Zealand Embassy in Beijing has been published on the MFAT website. It includes details on:
- The return to growth in China’s GDP
- The increase in industrial output
- Recent changes in China’s currency exchange rates
You can view the complete list of market reports published to date here:
A reminder to save the date: Tuesday December 1
NZCCO Webinar with MPI – Part 2 of the Digitisation of Border Processes series.
The webinar is available for all full members and affiliates.
And just a final note that we are very close to launching the new NZCCO website. New log-ins for the member-only area will be issued to all members and affiliates next week.
Have a safe weekend,