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Newsletter      ISSUE No.8  |  November 2016

NZSC Strategy Day Postponed
Given the current disruption in Wellington as a result of the recent earthquake and ongoing aftershocks NZSC have postponed the upcoming Strategy Day until the New Year. We expect that it will be rescheduled in early February to coincide with the parliamentary calendar and hope to advise the new date in early December.
Major disruption to supply chain as a result of Monday's 7.8 quake
The recent earthquake has caused significant disruption to the upper half of the South Island and Wellington.  With the combination of major land movements and slips State Highway 1 and the main rail trunk line are impassable and inaccessible, and will be for months.  There are alternative routes in place but we are aware some shippers have significant access issues.
 
The NZ Shippers’ Council is working direct with Ministers and officials to keep them fully informed of constraints and concerns that shippers face.  If you are having issues that you cannot solve directly please get in touch with Megan Campbell or the NZSC Executive so that we can help you find a solution.
 
The shipping lines, transporters, logistics companies and shippers have worked collaboratively to consider ways to overcome the very significant disruption to the supply chain.  There are many challenges ahead and we hope this collaborative mindset continues over the coming months.

Big Ship milestone for NZ Shipping

 
 Early October saw the arrival in Tauranga of the largest container ship to have ever visited New Zealand. Part of Maersk Lines’ service between South America and North East Asia, the vessel has the nominal capacity to carry almost twice as much cargo as any other container ship that has previously visited New Zealand and its arrival represents a milestone for New Zealand shipping.
 
The Aotea Maersk is one of 11 vessels in the service rotation, offering a weekly direct service to markets such as China, Korea, Japan and Taiwan. We look forward to any potential expanded economic opportunities created by the new service and hope that this is just the first of many new initiatives offering more services and more choice for shippers.


News from the IMO - Sulphur emissions to
be curbed
The IMO has agreed a 0.5% global sulphur cap on ship emissions from 2020 - rather than the potential later date of 2025. This represents a significant reduction in the maximum sulphur content permissable, down from 3.5% (outside existing emission control areas), and comes against warnings from the sector that the new rules will extract a high cost on the already beleaguered container shipping industry.    

Global Shippers report underlines issues associated with shipping line consolidation
and alliances
The Global Shippers Forum (GSF) report Into the economic implications of mega ships and alliances for competition and supply chain efficiency is extremely timely given the significant change taking place in the sector. 
 
The GSF report has been prepared in light of the gathering pace of consolidation and alliances, and the likely impacts this will have on shippers and other stakeholders in the global supply chain.


Hanjiin bankruptcy - Lessons for Shippers

 
The bankruptcy filing by Hanjin Shipping on August 31st saw 66 ships with cargo worth US$14.5bn denied access to ports around the world due to concerns about whether docking costs would be paid.
 
Hanjin was the world’s seventh biggest container line with a fleet of more than 90 vessels. Its collapse is the largest shipping bankruptcy in history - and commentators believe that in the current shipping climate the risk that there will be another bankruptcy cannot be discounted.
 
The number one lesson to be learned is that “too big to fail” thinking is no longer valid; Hanjin should be a wake-up call for all shippers that even the largest carriers are not immune to failure.
 

POLITICAL UPDATE

 
We live in interesting political times.  According to Chinese folklore that is not always a good thing. Charles Finny reports on the latest political and trade news.
 
It is looking as though we are in for a bigger Cabinet re-shuffle than might have been expected.  The announced retirement of Hekia Parata is the reason for this.  The Prime Minister is already signaling in public that he will need a Minister of Education to serve right through 2017 so he will need to replace Minister Parata at the start of the year.  There is also talk that he is contemplating an election earlier than November.
 
Meanwhile the Mt Roskill by-election is going to be important.  A win by National would give the National Party the ability to pass legislation with just the support of ACT.    While Phil Goff won the electorate 18,637 to 10,546 at the last General Election National won the party vote 14,275 to Labour’s 12,086.
 
TPP is in effect on life support.  The Obama Administration was preparing a Bill on ratification for introduction during the “lame duck” period.  Given the decisive Trump victory, attempts to pass a Bill ratifying an Agreement that Trump so strongly opposes is both inappropriate and unlikely to garner any support from the Republican Party.  Why buy a fight with the new President?

Welcome to new member - Miraka  
Miraka is a unique New Zealand dairy-processing company. Located in Mokai, 30km northwest of Taupo, the company is owned by a group of Maori trusts and incorporations and is founded on strong cultural values of environmental protection and sustainability for future generations.
 
Miraka (Maori for milk) processes some 250,000,000 litres of milk into powders and UHT products every year. All supply is sourced from local farms within an 85km radius of the factory, where renewable geothermal energy is used to run the processing operations and biological waste is composted at a nearby worm farm for subsequent recycling to support plants used for riparian waterway planting.
 
Miraka’s product range has a global reach of more than 23 countries, with exports to North America, Central America, South America, the Caribbean, North Africa, East Africa, West Africa, the Middle East, North Asia, South Asia, South East Asia, Australia and the Pacific.
 
Miraka is represented on the NZ Shippers Council by Lucy McLeod, General Manager Supply Chain.
 
CONTACT US:
Send an email to
NZSC Executive Officer
Megan Campbell
IN THIS ISSUE:  

>  Major disruption
    to supply chain

>  Big Ship milestone
    for NZ Shipping

>  News from the
    IMO

>  Global Shippers
    report

>  Hanjiin bankruptcy -
    Lessons for Shippers


Political Update

Welcome to Miraka

 
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