This is a media release issued by the Custom Brokers and Freight Forwarders Association (CBAFF).
A large container ship due to arrive at Northland’s port on Sunday (6 December) is not the ‘silver bullet’ solution to get goods to Auckland in time for the Christmas market, says the freight forwarding industry body.
The ANZEX ANL shipping line has announced its Constantinos P cargo vessel will stop at Northport at Whangarei, rather than its planned call at Ports of Auckland (POA), due to a backlog in ships being able to berth and unload at POA. It will be the largest ever ship to call at Northport, unloading an estimated 1300 containers.
However, Rosemarie Dawson, chief executive of the Custom Brokers and Freight Forwarders Association (CBAFF), said the decision would create major logistical challenges, incur significant additional costs for importers, leading to higher prices for consumers – and goods may still not make it to stores in time for Christmas.
“While we welcome measures by shipping lines to help address the current challenges to imports into New Zealand, diverting ships to Northport is not the answer,” says Ms Dawson.
“The rail link to Northport does not reopen until 11 January, so all these containers will need to be moved by road. Moving them will require at least 2,600 150km trips to Northland and back to Auckland, creating a lot more traffic, and safety issues on roads not designed for that kind of load.
“This will also take capacity to move containers out of the Auckland market, potentially exacerbating the issues there.”
Ms Dawson said the very significant additional costs of moving the containers from Northport, would be borne by importers, who would need to pass these costs on to their customers.
As well as the additional distance travelled, trucks are likely to be travelling to Whangarei empty, incurring further costs for an unproductive journey. The sector also fears there may not be enough trucks to move the containers in a timely manner, so importers will also be hit by demurrage and detention – charges imposed by shipping lines when containers are not moved or returned within the permitted time.
“The port congestion surcharge that shipping companies are applying in Auckland will pale into insignificance in comparison to these combined costs,” says Ms Dawson.
“In theory, one truck can make two round trips a day between Auckland and Northland, so could move two containers a day – if everything runs smoothly. However, having consulted with the trucking sector, I know they have significant concerns about the ability of the Northport infrastructure to keep trucks flowing freely.
“There may also be difficulties in finding sufficient drivers. There are strict limits to the hours drivers can work and the Northland/Auckland route requires linehaul as opposed to metro driving, it’s a different skillset.”
CBAFF has called on shipping lines to extend the free period around detention on containers, to take account of the extraordinary situation in New Zealand.
“We have also sought expert legal guidance on behalf of our freight forwarder members,” says Ms Dawson. “The advice is that they will need to pass all these significant extra charges on to the importers. Freight forwarders will only have recourse to insurance if they can’t recover these costs from their customers – and in that case, the insurers may act against the customers.”
ENDS
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Keep up to date with the latest fuel adjustments, operational updates and media releases.
MEDIA RELEASE: Concerns over large container ship diversion
4 December 2020Fuel Adjustment Factor
Month | Standard Nexus FAF |
---|---|
Jan 2021 | 3.86% |
Dec 2020 | 3.80% |
Nov 2020 | 4.31% |
Oct 2020 | 4.61% |
Sep 2020 | 5.04% |
Aug 2020 | 4.58% |
Jul 2020 | 4.54% |
Jun 2020 | 3.81% |
May 2020 | 4.08% |
Apr 2020 | 4.68% |
Mar 2020 | 7.92% |
Feb 2020 | 7.96% |
Archive
2020
Happy holidays from Nexus Logistics
Christmas and New Year operational hours
Empty depot congestion
VBS cost increase at MetroPort
MEDIA RELEASE: Concerns over large container ship diversion
Update on delays of vessels arriving to NZ
Planning for supply chain pressure
Pacifica Shipping surcharge
Ongoing demurrage and detention capacity
Fatality at the Ports of Auckland
KiwiRail Derailment
COVID-19 safety protocols at SAFH
Operations at COVID-19 Alert Levels 2 and 3
Queen's Birthday weekend hours
ANZAC operational hours
COVID-19: Extension to freight movements
Easter operational hours
Rail cancellations
Clapping for our essential workers
Reduced weekend hours at Wiri Inland Port
COVID-19: Changes to transport of non-essential goods
COVID-19: Lower North Island storage options
COVID-19: Support for our valued clients
COVID-19: Ports of Auckland response
COVID-19: An update from Nexus Logistics
South Auckland Freight Hub, Wiri Inland Port and Conlinxx Transport partial closure
SAFH/Wiri Port/Conlinxx temporary hours, week 23 March
COVID-19 update
SAFH/Wiri Port temporary hours, week 16 March
Reefer reset changes
Temporary hours change
Impact of Coronavirus/COVID-19 on operations
Cut off times for Waitangi Day
Auckland Anniversary and Waitangi operational hours
2019
Nexus Logistics holiday hours 2019-2020
High winds at SAFH
Mechanical issues at the South Auckland Freight Hub
Operational Update: POAL Fergusson Terminal
POAL Terminal Yard capacity
Challenges in Auckland's container supply chain
Labour weekend operating hours and order cut-off times
Ensuring smooth operations during peak season
Changes to Dangerous Goods paperwork for storage at the South Auckland Freight Hub
Potential FAF increase
Nexus Logistics General Rate Increase
Empty Dehire Management
Rail Grid Maintenance Work
Queen's Birthday Weekend Hours
Operational Update: Lyttelton Port VBS
Easter and ANZAC Trading Hours
Continued Constraints in Supply Chain
Operational Disruption at Metrobox Neilson St
Customer Notice: Lyttelton Container Terminal VBS
Metrobox Auckland Anniversary Hours
Upcoming statutory holiday hours
POAL Auckland Anniversary Weekend Receival and Delivery Hours
Operational Update: POAL Reinstatement of Demurrage Standard Free Time 1 February 2019
Operational Update: Ongoing Communication with Ports
2018
Operational Update: Change to track and trace services at POAL and POTL
Nexus Logistics Christmas Hours
Operational Update - Daily Update
ShuttleSelect Update: Assistance with collecting imports required
Operational Update - Delays at South Auckland Freight Hub
Operational Update - South Auckland Freight Hub
Operational Update - Container Disruption (Auckland)
Operational Update - Lyttleton Container Terminal
Operational Update - Daily Update
Operational Update - Maersk redirection
Operational Update - Daily Update
Operational Update: POAL Impact of Off Window Vessels
Media release - Auckland's supply chain complications
Operational Update - Minimum straddle amount at POAL
Operational Update - Daily update and information for Maersk/Hamburg Sud customers
Operational Update - Daily Update
Operational Update - Fergusson Terminal
Operational Update - Rail Services
Operational Update - Daily Road Alert
Operational Update - Daily Update
Operational Update - Daily Road Alert
Nexus Logistics Operational Update
Ports of Auckland - export containers
Ports of Auckland road alert - Issues receiving external emails
Operational Update - Demurrage extension for imports through Fergusson Terminal
Nexus Logistics Labour weekend hours
Operational Update - Port of Tauranga and MetroPort
Operational Update - Fergusson Terminal
Operational Update - Fergusson Terminal
Labour Weekend Receival and Delivery Hours
Operational Update - Fergusson Terminal
Operational Update - Fergusson Terminal
Operational Update - Fergusson Terminal
Operations Update - Fergusson Terminal
Operational Update - Fire at Ports of Auckland
Operational Update - Fergusson Terminal
Operational Update - Fergusson Terminal
Operational Update and Detention Advisory