Handling of empty containers during last year’s peak season caused significant problems for cargo owners, transport companies and many other supply chain stakeholders. Many constraints remain in place and notably the empty container parks remain at capacity with limited ability to absorb the anticipated peak season volumes. As a result, we have had to review how we manage empty container movements and dehire.
Delays, cancellations and redirections have put significant pressure on our operations and introduced additional costs into our business in the form of additional administration, vehicle productivity loss, extra cartage legs, hub handling and storage. We understand the pressure the supply chain is under, particularly in Auckland, and our customers’ desire to keep their supply chains moving, however, we can no longer continue to absorb these additional costs.
Utilising South Auckland Freight Hub (SAFH) to hub empties offers significant value to our Customers through ensuring an uninterrupted flow of full container deliveries and empty clearance. This allows a buffer against inefficiencies and delays associated with direct empty dehire, however, there is a cost to this and we must unfortunately pass these costs on.
Nexus will endeavour to dehire containers directly where possible, though this is not always possible. Where we cannot obtain a dehire booking, which allows direct cartage to the empty yard and/or the Customer requests Nexus to uplift empties before a dehire booking can be obtained, an additional cartage leg will be charged. As of 1st July 2019, an additional cartage leg rate of $125+FAF will be applied to every container hubbed via SAFH.
We would also take this opportunity to remind customers that Nexus Logistics will not be liable for any detention costs caused by delays and operational constraints outside of our control. We strongly urge all customers to make suitable arrangements with their shipping lines and agents to ensure suitable and realistic free time arrangements are in place.
To mitigate the operational and commercial impact, Nexus Logistics has implemented additional resources to manage and coordinate empty container movements. Our new delivery team aims optimise empty dehire heading into peak season and we plan to maintain strong communication with Customers and keep you well informed should we see any potential issues looming.
We will be introducing the third leg charge from 1 July 2019.
We thank you for your business and trust you understand the situation we find ourselves in.
If you have any questions on this, please contact your key account manager or business development representative.