AN INCREASE in shipping delays to Oceania is hitting New Zealand particularly hard, according to a new report from logistics technology company project44.
The report, State of Ocean Freight – Oceania + Japan, attributes the delays in shipments from China to global port congestion, but notes New Zealand is facing another layer of challenges as carriers prioritise more profitable routes.
John Brazil, vice president Supply Chain Insights at project44, said there is still a crisis in the supply chain, especially in New Zealand.
“Compared to Australia, many exporters and importers are still waiting weeks longer for shipments,” he said.
A comparison of quarter-on-quarter data between 2019 and 2022 illustrates the severity of the impact on New Zealand, according to project44.
Data suggests shipment delays from China to New Zealand increased by 144% in the third quarter of this year compared to the same quarter in 2021, and by 372% compared to that of 2020.
When project44 compared the data from the third quarter of 2019 to the third quarter of this year, it found shipment delays from China to New Zealand were up by 6764%.
The report found customers in New Zealand who order the same goods at the same time as customers in Australia are generally receiving their goods several weeks later than they are received in Australia.
“One of the main reasons shipping to Australia was less affected by delays was that it has more ports for ships to call into in case of congestion,” the report said.
“Comparatively, New Zealand has fewer ports where ships can reroute to if congestion exists.
“However, supply chain experts in New Zealand attribute these delays largely to carriers’ shipping reliability since many lines view the country as less profitable.
“There is also a widespread fear that the reduction in import containers coming into New Zealand could affect their export volumes.”
Looking ahead, project44 predicts New Zealand supply chains may face even more serious challenges in the coming fourth quarter if lockdowns come into effect in China.
It said potential lockdowns could be caused by any new COVID-19 resurgences, and as the impacts of prolonged drought affect hydropower, halt shipping and force major companies to suspend operations.
