Focus Container Line liquidation: Tough transtasman shipping trade sinks brand new service

Transtasman container shipping has proven too tough for newcomer Focus Container Line. Photo / Alex Burton

Only four months after its launch, new transtasman shipping line Focus Container Line is in liquidation, leaving at least 100 import and export containers snarled up at Ports of Auckland.

The containers were unloaded from the vessel BBC Denmark, which is now at anchor in Auckland as agreed with the Brisbane liquidator BRI Ferrier.

The port was working directly with the cargo owners on the next steps, a port spokesperson said.

A letter from Focus Container Line to stakeholders sighted by the Herald suggests how tough established shipping lines make it for a new entrant to the transtasman trade route, saying “incumbent services showed no mercy when it was required through a very difficult period ...”

Joint liquidator James Taplin of Australia’s BRI Ferrier told the Herald since his firm’s appointment this week it had been working with cargo holders and the Port of Auckland to release about 100 containers at the port.

“Focus Containers Lines Pty Ltd leased containers from third parties and as the company has ceased operations we require the consent of those third parties before the containers may be released for export or removal from the port for unloading.

“We have already started to release some containers and are working to release all containers over the coming days,” Taplin said.

The Customs Brokers and Freight Forwarders Federation is also in contact with the liquidators on behalf of customers.

Focus Container Line was only launched in November.

A new shipping line, it was based in Brisbane, Australia, offering a new service linking China to New Zealand and Australia. It started from Ningbo on November 4 with the 1497 TEU (twenty foot equivalent containers) vessel BBC Denmark, which was followed by the 1756 TEU San Giorgio on November 19. The two vessels were to make round trips connecting Ningbo, Auckland, Ningbo with intermediate calls at Brisbane, Sydney and Melbourne on some of the sailings.

In launch advertising, Focus said it was a “new Australian-owned and operated container shipping service, providing simple and streamlined shipping to all freight forwarders throughout Australia and New Zealand”.

A report at the time Focus was launched said it had two corporate shareholders, KCE Roberts with 30 per cent and Dynamic Shipping with 30 per cent. A private investor held the remaining 40 per cent.

A Focus letter to stakeholders said it was “with great sadness” the service was being withdrawn from the transtasman trade lane.

“After a number of factors and hurdles faced by our service, we have found we are unable to continue.

“To everyone who supported us from the beginning, we thank you all for having the confidence and understanding what our goal was in starting this service. Without your initial support we would not have got off the ground and can only appreciate those of you who showed us a change was necessary.

”As we are all aware the incumbent services showed no mercy when it was required through a very difficult period and (an) opportunity was seen to open and operate a forwarder friendly service.

“Your patience is appreciated while we support all parties on every level in minimising the ongoing impacts in ceasing our operations.”

Focus said it still believed an important opportunity had been missed “by all”.

A call to Focus’ New Zealand office was answered by someone who said they were only an agent for Focus and could not comment.