Ports taking strain

EASTLAND PORT, WITH ITS 3 MILLION tonnes of logs shipped yearly, is not the only one taking strain in the shadow of the Coronavirus.

Napier Port, also heavily dependent on the forestry sector, expects to see a slowdown in log exports through the port.

“Given the current market conditions and uncertainty regarding its duration, we expect a slowdown in log exports from levels seen for the financial year to date and possible impacts on other cargo trades,” the company said in a statement.

“While we are unable to quantify the potential financial impact at this time, these conditions represent a materially increased risk to the achievement of previous earnings forecasts,” it added.

“We understand port operations in China are rebuilding towards normal operating capacity but it is uncertain how quickly this will occur. The trade outlook remains uncertain, and is dependent on the speed of recovery in China, and other countries taking measures to manage the Coronavirus risk and any resulting supply chain impacts,” the statement said.

Meanwhile, the country’s largest port, the

Port of Tauranga, has already reported an 8.4 percent fall in log export volumes in the six months to December 31, following a period of lower international prices and demand.

Port of Tauranga said the trade outlook for the second half remains uncertain and is dependent on the duration of the market shutdown in China and slowdown in other countries.

Wellington’s port company – CentrePort – also says it is bracing for a sharp downturn in log exports as a result of the Coronavirus outbreak. NZL