Bay of Plenty Times

Maersk beefs up NZ cargo capacity

Another ship added but giant sees global issues dragging on

- Andrea Fox

Container shipping giant Maersk is adding a vessel to its New Zealand ocean network to help unchoke supply chain congestion it believes will continue until late this year.

The world’s biggest container shipping line will add a seventh vessel to its Southern Star service, which it calls the backbone of the Maersk ocean network in New Zealand.

The service calls at the ports of Tauranga, Napier, Lyttelton and Port Chalmers before heading to Maersk’s Southeast Asian hub ports in Malaysia and Singapore.

Maersk Oceania Export head My Therese Blank said from these hub ports cargo connects to Maersk’s global network for delivery in Europe, the Middle East, Africa and Southeast Asia.

“On-time arrivals to our hub ports are vital to protect the lead time for New Zealand export cargo, especially for perishable goods.

“Furthermor­e, with the suspension of berthing windows across New Zealand ports causing disruption to our sailing schedule, the additional vessel will protect reliabilit­y and enable us to operate the service with a weekly sailing frequency across the New Zealand ports,” she said.

“With six vessels the round trip schedule takes 42 days in a standard operating environmen­t.

“[Vessels are having to wait to berth at the terminal on arrival to New Zealand ports . . . extending the round trip lead time before the vessel returns to New Zealand ports.

“By adding one additional vessel the round trip lead time increases to 49 days, effectivel­y creating additional schedule buffer, and enables us to have the vessels arriving to New Zealand ports on a weekly basis with significan­tly reduced disruption to the New Zealand supply chain.”

The additional vessel, Rio Negro, is scheduled to first call at Tauranga on May 22.

Blank said adding the buffer to the service schedule protected New Zealand network capacity, which otherwise would have been reduced by 20 per cent with vessels stuck waiting for time slots at container terminals.

“As we currently are in the New Zealand export season peak the seventh vessel is key to keep the New Zealand supply chain moving when it’s needed the most.”

Maersk adjusted the Southern Star service ship count to six vessels in January as supply chain congestion, particular­ly in the north of New Zealand,

worsened.

Blank said Maersk expected the supply chain disruption, seen at ports around the world as a result of Covid19, would continue throughout the export peak season.

“We are also experienci­ng impact from . . . congestion at overseas ports, impacting on-time arrivals to New Zealand ports.

“We continue to see strong demand for . . . imports and exports in New Zealand increasing pressure on the supply chain. This, coupled with lower port productivi­ty, and suspension of berthing windows is [creating] significan­t challenges to operate our

New Zealand service network.”

Costs for New Zealand importers and exporters have surged in the past year as shipping lines increased their charges amid strong demand for space as air freight capacity dried up following the pandemic outbreak and as consumer demand soared. Shipping lines also introduced special congestion charges for containers handled at Auckland, the country’s main imports gateway.

Container vessels have been diverting to Port of Tauranga, New Zealand’s biggest port and its main export gateway, as the Bay of Plenty port grapples with its own export peak. Northport has also been called on to handle some vessels avoiding Auckland.

The latest operationa­l update from Ports of Auckland shows the status of container terminal operations remains “severely degraded”. Berth windows remain suspended.

The report said “considerab­le effort was being made to identify how best to reinstate berth windows whilst also being able to support the ongoing demand of vessels if any become delayed at other ports”.

“As we prepare the terminal for ‘full terminal roll out’ of automation, planned for July at this stage, it is likely we will only be able to achieve a phased reinstatem­ent of the windows . . . as and when additional labour capacity comes into the operation.

“We expect this to start from early May.”

Three container vessels were listed as at anchor waiting for berths as at April 21. They had arrived in Auckland waters on April 16, 17 and 20 respective­ly. The latter vessel was expected to berth on April 28.

At Port of Tauranga, container vessels were waiting on average two to three days, said a spokeswoma­n.

Around 4000 TEUS (20-foot equivalent containers) were awaiting rail transfer to Auckland, down from 5355 on April 8. These containers had been scheduled to land at Auckland port.

 ?? ?? Maersk Oceania Export boss My Therese Blank says the extra ship will help at at a critical time for NZ exports.
Maersk Oceania Export boss My Therese Blank says the extra ship will help at at a critical time for NZ exports.

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