You may have seen the media attention we’ve been generating around the lack of shipping availability. The aim is to encourage shipping lines to consider some additional capacity. The matter was brought to our attention by some members who were having problems getting exports shipped.

It seems this problem is most acute in Hawkes Bay, Christchurch and Otago. Part of the problem is the peak season pressure from the bulge of seasonal and perishable goods, but added to this is the fact that the shipping lines have taken capacity out of the market in order to boost up their profitability.

Exporters who are exporting higher value cargo in higher value containers (refrigerated) and are regular contractual customers will get priority over those with lower value cargo or those that are sporadic exporters.

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.

What we can recommend to members is that their shipping strategy needs to be part of their total business strategy and if they have not had to make advance bookings in previous years this will be necessary in some parts of the country in the future. Also, occasional exporters should investigate teaming up with regular exporters or higher value exporters, so as to get the benefit of stronger contractual relationships.

If you wish to discuss this or any other international trade matter, I can be contacted on phone 0274 633 212 or email cbeard@businessnz.org.nz

(Source: Exporter Link Auckland April 2010)