According to a new report from project44, State of Ocean Freight – Oceania + Japan, attributes the delays in shipments from China to global port congestion but notes New Zealand is facing another layer of challenges as carriers prioritise more profitable routes and Covid-19 shipping issues linger.
The report analyzed data on a quarter-on-quarter basis between 2019 and 2022, illustrating the severity of the impact on New Zealand:
- Delays from China to New Zealand increased by 144% in the third quarter of this year compared to the same quarter in 2021;
- Delays from China to New Zealand increased by 372% in the third quarter of this year compared to the same quarter in 2020; and,
- Delays from China to New Zealand increased by 6764% in the third quarter of this year compared to the same quarter in 2019.
This means customers in New Zealand are generally receiving their goods several weeks later than they are received in Australia, even when ordering the same goods at the same time as Australian customers.
Why is this happening?
Much of this has to do with the number of ports Australia has, allowing ships to call on ports even with congestion abound.
With New Zealand having fewer ports for rerouting, congestion is exacerbated and shipments are delayed. Other factors at play; supply chain experts in New Zealand attribute these delays largely to carriers’ shipping reliability since many lines view the country as less profitable. The flow-on effect of this may also result in export volumes contracting thanks to the reduction in import containers coming into New Zealand.
Covid-19 and climate change a significant threat to New Zealand supply chain issues
The report also highlights New Zealand may face even more serious challenges in the coming fourth quarter if lockdowns come into effect in China. Potential lockdowns could be caused by any new COVID-19 resurgences, and, combined with the impacts of prolonged drought affecting hydropower, shipping operations could become even more stressed, forcing major companies to suspend operations.
With the current volatility in New Zealand freight, on both imports and exports, we here at TFG Global are working closely with our clients and our freight network to ensure we do everything we can to limit disruptions and ensure freight is delivered as quickly and efficiently as possible. Our global reach and local knowledge mean that when it comes to freight forwarding, we are the full package. Contact us today to discuss your freight needs and obtain a comparative quote to understand the TFG Global difference.
For all your freight forwarding solutions, internationally and Australia-wide, you need TFG Global.