Shortage of container space for exporters

Published: 11:05AM Wednesday March 17, 2010 Source: ONE News

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Export New Zealand says exporters, in Christchurch, Hawke's Bay and Otago are all reporting difficulties getting container space despite having bookings made.

Exporters are struggling to get their goods shipped out of New Zealand due to a shortage in container space on cargo ships particularly in Hawke's Bay, Christchurch and Otago, according to Export NZ Executive Director Catherine Beard.

"They are getting bumped at the last minute and their goods are not going a day or two later, but they are experiencing delays of a month to six weeks to get their products away."

"This is not desirable for a country that is pinning its hopes on an export led recovery and not good for exporters' relationships with overseas customers."

Beard told NZI Business that there was not such a problem in the large ports like Auckland and Tauranga which had ships coming in and emptying containers but regional areas wanting to export fresh produce are struggling. 

Beard says the situation has been caused by peak season trade as well as rationalisation of shipping lines with companies taking capacity out of the market to increase their profits.

"Some shipping companies are also slow steaming to reduce cost. This slow steaming results in longer delivery times for exports, has shelf life implications and could require greater inventory levels," she says.

"In terms of a solution, there is no easy answer since New Zealand is a small player in the international scheme of things, and the rationalisation of capacity has been a global move rather than a New Zealand specific move."

Export New Zealand recommends exporters consider teaming up "to get the benefit of stronger contractual relationships" especially as the problem is affecting smaller, newer exporters more than established exporters.

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