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Date:
Time:
Meeting Room:
Venue:
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Tuesday 8
December 2020
2.01pm
Reception
Lounge Auckland
Town Hall
301-305 Queen Street
Auckland
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Kōmiti Aromātai Whakahaere Kaupapa Kei
Raro
I Te Maru O te Kaunihera /
Council Controlled Organisation Oversight
Committee
OPEN MINUTE ITEM ATTACHMENTS
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ITEM TABLE OF
CONTENTS PAGE
9 Ports
of Auckland: final statement of corporate intent 2020-2023
A. 8 December 2020
- Council Controlled Organisation Oversight Committee, Item 9 - Summary of sea
freight supply chain congestion 3
B. 8 December 2020
- Council Controlled Organisation Oversight Committee, Item 9 - Ports of
Auckland: final statement of corporate intent 2020-2023, presentation 5
11 Council-controlled
Organisations - Quarter 1 Performance Reports ending 30 September 2020
A. 8 December 2020
- Council Controlled Organisation Oversight Committee, Item 10 - Quarter 1
Performance Reports ending 30 September 2020 - Auckland Unlimited PowerPoint
presentation 17
B. 8 December 2020
- Council Controlled Organisation Oversight Committee, Item 10 - Quarter 1
Performance Reports ending 30 September 2020 - Panuku PowerPoint presentation 25
C. 8 December 2020
- Council Controlled Organisation Oversight Committee, Item 10 - Quarter 1
Performance Reports ending 30 September 2020 - Auckland Transport PowerPoint
presentation 31
D. 8 December 2020
- Council Controlled Organisation Oversight Committee, Item 10 - Quarter 1
Performance Reports ending 30 September 2020 - Watercare PowerPoint
presentation 41
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Council Controlled Organisation Oversight Committee
08 December
2020
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Summary of sea freight supply chain
congestion
1. There
are pressures on New Zealand’s sea and land freight supply chain system
with congestion occurring at the Ports of Auckland (POAL) as a result of
international ships arriving off-schedule.
2. Our
understanding is that these delays are being caused by a confluence of factors,
including this being the peak import season/start of the export season, an
unexpected and sudden surge in demand amidst COVID-19, bad weather and maritime
industrial action causing congestion at Australian ports, as well as congestion
issues at some transhipment ports in Asia further up the supply chain.
3. The
fatality at POAL in end-August, delays to the automation of POAL’s
container terminal due to COVID, and labour constraints have also complicated
POAL’s management of the surge in demand.
4. While freight might normally divert to the
Port of Tauranga (POT) in times of delay at POAL, POT is operating near
capacity with constraints on rail capacity between POT and Auckland.
5. Due
to time constraints at berths, the focus at POAL has been on the removal of
import containers from ships, limiting export and coastal shipping volumes. As
a result, a lot of the normal transhipment from POAL (including empty
containers) to the rest of New Zealand is not occurring or going by road and
rail carriers. This has impacts on our exports which rely on these ships and
empty containers to move their goods offshore.
6. There
are also reports of shipping lines bypassing ports both in New Zealand and
overseas to make up for lost time and keep on schedule. This compounds the
challenges for exporters in obtaining empty containers and timely shipping
services.
7. Additionally,
these developments are occurring in the context of increased global competition
for container services, especially from the US and China, which has led to
significant escalation of sea freight rates (four times last year’s
rates).
8. We
have received wide ranging reports of importers/exporters in various sectors
being affected by these congestion issues.
9. General
feedback from industry stakeholders is that the international supply chain
issues, POAL congestion, as well as the resulting delays and backlogs in
freight movements and container supply constraints, are likely to continue past
Christmas and even up to mid-2021.
10. MOT officials are leading an inter-governmental group of officials
(including MFAT, NZTE, and MPI amongst others) to monitor developments and
assess if/how Government might be able to assist.
