NZ Supply Chain Update New Zealand Overview

The following is an update on the New Zealand supply chain, congestion, and subsequent delays. It is a condensed summary of the broadcast issued by Orbit Logistics

Update

Container Depots, where most containers are hired or de hired, are severely congested. This has enormous consequences for Road Transport operators meaning there are delays returning empty containers.  Ports of Auckland still have massive issues.  Ports of Tauranga Rail service can be very slow from Tauranga to Metro Port.  Obtaining a booking time from the Port is an issue.  There are still delays in unloading at Ports of Auckland, who are hoping to have their Automation project working soon.

Berth windows for all vessels calling at Auckland remain suspended.  Auckland Port Congestion Surcharges are still in place at present as delays continue.

Sea Freight Rates

December saw sea freight rates at the highest ever seen, and shipping line arrival dates to be very unpredictable.  Many deadlines were missed and port congestion became a common theme for various parts of the globe.

Cargo demand surged in December and January, which had a hand in raising January sea freight rates further, with little or no space available on vessels.  Rates increased an average USD500 – USD700 per 20ft container and double that for 40ft equivalent above the already inflated December rates.  LCL rates were victim to substantial rate increases across various trade lanes in December and then again in January.  Shipping Line rate updates for February have been slow coming which may be the lines gauging market reaction before deciding what they will do next.

Shipping Lines

Most Shipping Line containers are to only allow 7 days free time from date of discharge.  They should allow more free time in the current environment but seem to see late returning charges as a money-making exercise.  We now have the Road Transport trying to take legal action to challenge the legality of their charges.  Shipping lines have also seen the opportunity with reduced space to increase freight costs.

at ACF, as a leading freight forwarding provider in Australia, we’re committed to providing our customers with critical trade, freight and cargo updates. Keep checking in for the latest news.