As the economy continues to recover from the effects of the COVID-19 pandemic, businesses and consumers alike are feeling the strain of increased import and export activity. Regrettably, congestion at mainly Auckland Container depots has deteriorated further since the last update. Capacity in the main centres, especially Auckland, are operating at an overcapacity level and unable to handle the volume of empty containers for dehire or turn around units to make them available for export use.

Key depots have either shut altogether for lengthy periods or greatly restricted the number of acceptance bookings issued. Often the only option for trucking companies is to uplift the empty container(s) from importers premises and then hub the containers called in until they can obtain an active acceptance with a matching booking, many days later. The backlog of hubbed containers waiting to be dehired is significant. It will take some time to redress the imbalance even with a concerted effort to reuse containers for export, evacuate unused empties out of New Zealand as the latter requires redirection of scarce resources away from handling import containers.

We are taking issue with Shipping Lines currently not offering any relief on detention due to the unavoidable delay in dehires. This is a major concern for importers, as it results in additional costs and delays in receiving their shipments.

There is an ongoing resourcing issue in the New Zealand supply chain driven by a long-term lack of skilled & semi-skilled labour. A resurgence in covid, along with staff absenteeism for other reasons, is and will continue to be a major factor hindering the Ports, warehousing, and trucking companies’ ability to cope with existing volumes. With warehouse storage capacity for imports at a premium coupled with no relief on demurrage or detention, importers should plan to have resources available to receive incoming shipments over the upcoming short weeks.

On top of that, VBS (Container booking) charges will increase again in February with a rise in Metroport VBS charges closely following announced adjustments to be billed by Ports of Auckland from 1st January 2023. This is a significant increase for importers and exporters and will further add to the financial burden caused by the delays and congestion at the ports.

Exporters are also facing their own set of challenges. Congestion at the Port of Tauranga continues with slight easing. Vessel arrival and close off dates constantly change. Exporters should monitor the Port of Tauranga website closely and aim to have their containers on port at the first opportunity.

Equipment shortages continue for Hapag Lloyd, ANL, & CMA CGM & Maersk, Nelson, Port Chalmers, and Napier are the most impacted. This is causing delays in the loading and unloading of containers and further adding to the congestion at the ports.

In conclusion, businesses importing and exporting goods to and from New Zealand are facing significant challenges due to the ongoing congestion at the ports and the lack of skilled labor. As a result, importers and exporters should expect delays and additional costs and plan accordingly.