Items are still disappearing from shelves as supply chain constraints continue to bite. Photo / Getty Images
Items are still disappearing from shelves as supply chain constraints continue to bite. Photo / Getty Images
Containers full of goods are being sold out the day they land as retailers scramble to replace stock that is disappearing from shelves.
The scenario, which has been described as the 'perfect storm', has created headaches for industries, and consumers should prepare for price hikes, industry insiders say.
Air NewZealand has also revealed imported cargo from the US and Asia had jumped 30 per cent in the last three months as bottlenecks at ports around the world continue to cause congestion.
''Retailers are continuing to report ongoing problems in getting product onto ships to New Zealand, and then through the ports.''
Some retailers had also resorted to air-freighting products in but delays in that arena and costs were another big issue.
''It costs a lot more to bring goods in by plane than by ship. This, ultimately, will be a driver of inflationary pressure over the next six to 12 months.''
On the flipside, the retail sector had seen a big surge in sales over the last 12 months – but CBD retailers were feeling the pinch.
''Many firms in visitor destinations such as Rotorua and Queenstown have been severely impacted by the reduction in visitor numbers. CBD retailers, especially in Auckland, Wellington and Christchurch have seen falls in foot traffic and sales.''
Harford also warned price hikes were on the horizon as costs have risen substantially so the retail sector remains under significant pressure.
Master Plumber's chief executive Greg Wallace.
Master Plumber's chief executive Greg Wallace said the situation was ''pretty bad'' and had gotten ''worse''.
There was still tapware, toilets and pipes in New Zealand but they had run out of certain brands so customers were having to compromise and change their selections.
''That means plumbers are having to make adjustments which are incurring costs. They are having to replace things with other brands and styles so it is a constant moving target.''
He said it was a ''perfect storm''.
''We had all these economists saying after Covid it would decline so suppliers adjusted their forward orders. Then there was the Auckland Ports debacle and on top of that the renovation market for the plumbing sector is up 41 per cent.''
Wallace was also aware of containers full of goods being sold out on the day they landed.
Meanwhile, Bay of Plenty District Health Board procurement and supply chain manager Garry Dowse said there had been delays on numerous items ranging from surgical clipper blades to plaster of Paris bandages.
''The main impact is the need to either alternate source or substitute the affected items. To our knowledge, there has been no impact on patients to date.''
Freight costs had risen but these were managed primarily by Pharmac and any additional costs were borne by the DHB, he said.
Acting Pharmacy manager Karen Street said the impacts were not limited to Covid but also included industrial action in other countries; export restrictions; increased global demand.
When required patients may receive alternate brands of the same medicine.
A Lakes District Health Board spokeswoman said there had been some difficulties getting specific products which had prompted the Ministry of Health to step in.
It had brokered items like the Alaris pumps, which were not used at Rotorua Hospital.
Clinical staff had found alternatives and adopted other appropriate workarounds for other items in short supply, she said.
Air New Zealand Cargo general manager Anna Palairet said It's been pleasing to see an increase in imports over the past three months from the US and Asia. Both were up more than 30 per cent compared to last year.
Its offshore teams were actively working with the freight industry to ensure import goods continued to flow into New Zealand.
At the moment, goods being imported into New Zealand were a mixture of technology and electronics, machine parts, apparel, e-commerce and mail.
''Without passengers, the operating cost of the aircraft needs to be covered entirely by the cargo. However, we are grateful the MIAC scheme is providing some relief to importers and exporters compared to what prices would have been without the support of the scheme."
The Port of Tauranga is now in its busy export season. Photo / File
A Port of Tauranga spokeswoman said imported cargo delivery times were now back to normal but it was still in its peak export season.
Due to problems at the Port of Auckland large amounts of imported cargo had been diverted to Tauranga but that backlog had been cleared.
Logs, kiwifruit and dairy products were leaving New Zealand for export markets and on Sunday Maersk Shams left Tauranga with a record export load on board – 5326 20-foot equivalent units, including a record 1914 refrigerated TEUs.
Internationally there were some bottlenecks at other ports around the globe where there was high demand for shipping capacity [leading to higher prices] and delays to some services, she said.
'This does impact on services that call in New Zealand as they carry those delays here, missing their Pro-forma shipping windows.''
The Ports of Auckland has been approached for comment.
