Supply chain chaos has pushed global logistics company Mainfreight’s annual revenue above $5.5 billion, but those fortunes could falter as freight volumes decline.
“Part of that is about, I think, de-stocking and a lack of ordering, by importers, retailers,” Mainfreight managing director Don Braid told Markets with Madison.
“We’re just being cautious as we proceed through this next 12 months or so.”
Freight volumes increased markedly during the pandemic, and demand pushed up sea freight prices on some international routes by 10 times, Braid said.
However, businesses were ordering less stock, due to lower consumer demand and having a higher level of inventory already on hand.
In the year to March, Mainfreight’s (MFT) volumes began dropping, with total air freight kilograms down 8 per cent and the number of sea freight twenty-foot containers down 7 per cent.
“We don’t know where that floor lies,” Braid said.
Watch Braid discuss Mainfreight’s moderation, its $676 million capital investment plan and succession plans, on today’s episode of Markets with Madison above.
Plus, Infratil (IFT) chief executive Jason Boyes explains its decision to buy out One NZ, formerly Vodafone New Zealand.
The infrastructure investor launched an $850m capital raise last week, with $100m to be offered to retail investors on Tuesday.
Boyes reveals what type of business it’s keen to acquire next on today’s episode.
Get investment insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.
Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.