Electrify NZ Tauranga franchise owner Dan Wallace says the popularity of biking has increased tenfold which has put a strain on some supply chains. Photo / George Novak
Electrify NZ Tauranga franchise owner Dan Wallace says the popularity of biking has increased tenfold which has put a strain on some supply chains. Photo / George Novak
Christmas shoppers are advised to get in early this year as the disruption to the supply of goods because of Covid-19 could make some gifts scarce and drive up retail prices.
Some sectors say the disruption and subsequent delays are the worst they have experienced and Retail NZ fears thesituation could "derail" some outlets because of lower margins.
The situation is expected to get worse in the lead-up to Christmas with experts predicting some goods will be in short supply and are advising consumers to get their orders in early.
Retail New Zealand chief executive Greg Harford said nationally stock shortages were being reported across many categories.
These included apparel, footwear and accessories, bicycles, books, appliances, sporting equipment, carpets and hard flooring, furniture and furnishings, electronics, musical instruments, jewellery, arts and craft supplies, plants, seeds, and toys.
The supply chain issues were partly caused by reduced freight capacity coming into New Zealand from overseas, and congestion at the Ports of Auckland and Tauranga.
"Retailer confidence has improved markedly over the course of the year, and retailers will be hoping for a strong Black Friday and Christmas shopping season to round out the year. Retailers can only sell goods that they have, however, so the supply chain challenges have the potential to derail that."
Electrify NZ Tauranga franchise owner Dan Wallace said six months ago it would take about nine months for an European e-bike to arrive in store.
The timeframe had doubled to about 18 months because of the impact of Covid-19 on the supply chains.
"So, really, if you can get a bike this season get one because, you know, there might be a glut in the market in a year's time."
Dan Wallace and Robin Killip, from Electrify NZ, in Mount Maunganui, say fortunately they have shipments of bikes that have arrived. Photo / George Novak
Wallace said interest in cycling had exploded as a result of Covid-19 and the consequent lockdowns.
"Everyone has got this love of riding, which is fantastic. It's gone through the roof as people are getting outside exercising more and, because of Covid, there is global demand."
Electrify NZ Tauranga had just received a shipment of bikes and more were on the way but pre-ordering was advisable.
Patterson O'Connor Motorcycles owner Brian Patterson, of Rotorua, said the whole "industry is pretty bad" and "it's the worst we have ever seen it".
Fortunately, the business had just received a shipment of 15 new bikes and some had been pre-sold but he expected issues would continue into 2021.
Bike sales were down 70 per cent last month compared to the same time last year "simply because we couldn't get the stock".
Parts were also hard to source, which had made the job a lot harder.
"Every time someone comes in to price something up there is always something that is not available and then you have to find it."
The business was fielding calls from around the country every day.
"So if you do tend to get something it disappears quickly and then you are out of stock again, but it is what it is and we are just trying to carry on."
Priority One chief executive Nigel Tutt. Photo / File
Priority One chief executive Nigel Tutt said New Zealand was a small player on the world stage and disruptions were expected to continue for some time.
"We have seen several businesses with supply chain issues. There doesn't appear to be much of a pattern and businesses are affected in different ways and circumstances."
The New Zealand supply chain was also quite dependent on the balance of imports and exports, he said.
Tauranga Chamber of Commerce chief executive Matt Cowley said certainty of import shipments was the main concern of local retailers and businesses.
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / File
"The world is facing a second wave of infections, which means some overseas manufacturers, ports, and customs officials are on skeleton crews.
"Other than seeking alternative suppliers or products, there is not much that local businesses can do, particularly if they are in the retail sector. Delays in plant and equipment for manufacturing businesses will delay production and productivity in the New Year."
A Port of Tauranga spokeswoman said Covid-19 had caused major disruption in the global supply chain, causing shipping delays, cancellations and capacity constraints.
The current delays in the Upper North Island supply chain were primarily because of severe congestion and capacity problems at the ports in Auckland and Sydney, she said.
"We have seen record amounts of both import and export cargo diverted through Port of Tauranga, which has put immense pressure on the rail capacity between Auckland and Tauranga. We have been working with KiwiRail to clear the backlog and are managing cargo flows through volume caps to ensure we make the most of the available rail capacity."
Mainfreight Ltd branch manager Lance Chadwick said it had not slowed down since the pandemic started and volumes were well up.
However, congestion at the ports affected logistics and that flowed through to the whole supply chain.
"It hasn't really affected us as we do road transport from Auckland and it's mainly the importers who are suffering because they can't get their products to onsell."
Air New Zealand Cargo general manager Anna Palairet said the freight industry had been through a period of significant disruption with border restrictions around the world.
Since Air New Zealand started flying under the International Air Freight Capacity scheme on May 8, it had done more than 950 return flights, carrying more than 33,000 tonnes of cargo in and out of the country.
Imports during the past three months from Asia had jumped by 29 per cent and the US was up 17 per cent compared to last year, she said.
"At the moment, goods being imported into New Zealand is a mixture of technology and electronics, machine parts, apparel, e-commerce and mail."
Domestically, the airline had transported 14 per cent fewer kilograms in the past three months compared to last year because of flying restrictions and a reduced domestic schedule.
