NZ Council of Cargo Owners chair Mike Knowles says poor port productivity risks New Zealand being seen by international shipping lines as a weak link. Photo / Supplied
NZ Council of Cargo Owners chair Mike Knowles says poor port productivity risks New Zealand being seen by international shipping lines as a weak link. Photo / Supplied
An advocate for New Zealand’s importers and exporters is hoping significant changes to Oceania services by the world’s biggest container shipping line MSC will be temporary, while calling on local ports to improve their own acts.
MSC has announced a “reshuffle” of Asia-Oceania network from later this month, with the Capricorn and Kiwi Express services temporarily suspended until further notice, and reinstatement and enhancement of the Wallaby service between Australia, New Zealand and North Asia.
“Moreover, the revised rotation [Wallaby service] will provide a comprehensive coverage of New Zealand ports, including Bluff, and a seamless connection to our global network via our main hubs in Hong Kong, Yantian, Shanghai and Ningbo,” the shipping company said.
While some in the shipping sector saw the changes as a reduction in New Zealand services - one service replacing two - the New Zealand Council of Cargo Owners (NZCCO) is choosing to look on the bright side for now, with reservations.
Council chair Mike Knowles said the key word in the MSC announcement about the Kiwi Express and Capricorn services is “temporary” suspension.
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“We’re currently in the low season for export shipping [through to January next year] so don’t have a major concern about this reduction in capacity right now - in fact it makes sense for MSC to deploy vessels where it can earn a better return off them. You have to see this move in the context of the highly competitive global market for vessels, which is magnified by the Red Sea crisis.
“There is actually some upside for NZ cargo owners in the ‘reshuffled’ service in that it is a more direct service; avoiding trans-shipment at the highly congested ports of Singapore and Tanjung Pelepas.
“However there will definitely be concern if this suspended capacity is not reinstated once we go into the high season. A net reduction in total capacity at a time of high export flows would be a big problem creating downstream issues such as congestion and delays into export markets.
He said as an export-dominated country dependent on international shipping lines, New Zealand had to be as efficient as possible along its entire port and supply chain network to compete with other global markets for shipping capacity.
“So, when there is offshore supply chain congestion and disruption as there is now, we are still seen as an attractive place for shipping companies to deploy ships to.
“A big concern for NZ Council of Cargo Owners in this regard is that a number of our major ports have still not recovered to the productivity levels they were performing at pre-Covid.
“Poor productivity risks New Zealand being viewed by international shipping lines as a weak link in their networks. That’s a real concern for the cargo owners.”
Port of Tauranga was also concerned about productivity at ports, a spokeswoman for the New Zealand’s main export gateway said.
“We share those concerns and agree that port productivity nationally is a big issue. Port of Tauranga has worked really hard in the past 18 months to successfully improve efficiency (e.g. our net crane rate is back to 30+), but we’re still finding that less than 30% of vessels arriving at Tauranga as a last New Zealand port of call are on time.”
Port of Auckland has been approached for comment.
Major NZ ports need to lift container-handling productivity to pre-Covid levels, says importers and exporters advocate. Photo / Alex Burton
Meanwhile, neither port expects much impact from MSC’s changes.
Port of Tauranga expected the same number of vessel calls and container exchange volume. Port of Auckland, the main import gateway, did not expect any volume changes.
MSC said the first sailing of the reinstated Wallaby service would depart Hong Kong on August 19.
The full vessel call schedule would be: Hong Kong - Yantian - Xiamen - Shangahi - Nigbo - Sydney - Melbourne - Auckland - Bluff - Lyttleton - Wellington - Napier - Tauranga - Melbourne - Brisbane - Hong Kong.
MSC said its Noumea Express service would also be improved with the addition of Tauranga and Nelson port calls.
The last Capricorn sailing would be from Singapore on August 20, and the last Kiwi Express sailing from Laem Chabang, Thailand, on August 20.
Geneva-based MSC reached a record share of 19.8% of the global operated container fleet at the end of July, according to sector analyst Alphaliner.
The shipping company had added some 400,000 teu (twenty foot equivalent containers) to its fleet this year, reaching the highest capacity ever recorded by a single carrier, Alphaliner said.
Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.
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