Freight delays at the Ports of Auckland is triggering an industry response for better planning and coordination.
The National Road Carriers Association and the Ports of Auckland are teaming up to tackle ongoing problems in the supply chain.
Imported freight has taken longer to deliver and exporters have encountered delays getting their goods away, leading to frustration all round.
National Road Carriers chief executive David Aitken says the supply chain is “running at capacity, so unexpected problems can have a domino effect”.
“At its heart, the problem is Auckland’s growth. The supply chain needs to evolve and we’re all going to have to change the way we work to prevent future problems. Better planning and coordination are the key.
“We’re letting stakeholders know what causes hold-ups and we’re working with partners to improve our end-to-end processes,” Aitken says.
Ports of Auckland commercial relationships general manager Craig Sain says more than half of all container ships arrived at Auckland late over the last 12 months, often due to bad weather, causing congestion.
“This makes it hard for us to staff the terminal properly, causing delays.”
The port also points to worker shortage as another cause of delays.
The current installation of an automated container handling system is set to address this problem, but the work required to install the system has reduced terminal capacity by about 20%, adding to congestion.
This situation will remain until late 2019 when the project will be completed.
“With reduced space in the terminal and more containers coming in due to growing Auckland demand for freight, it is taking us longer to service trucks visiting the port,” Sain says.
“In the past working 9 to 5, Monday to Friday was fine, but now Auckland has over 1.5 million people it is no longer feasible.
“The whole industry needs to be able to work 24/7, not just the port and carriers, and this means distribution centres and importers need to be open nights and weekends to receive imports.
“As a port we have a key role to play and we are trying to educate other players in the supply chain so that they understand the need for change and what they can do to make the process more efficient.
“Ultimately, these changes will benefit New Zealand through the fast, efficient and cost-effective delivery of freight,” Sain says.
Earmarked solutions include a combination of technology, greater co-ordination and a move to 24/7 working throughout the supply chain.
As well as investing in automated container handling, Ports of Auckland is working with National Road Carriers Association to update its processes and business rules to minimise manual intervention and incentivise off-peak container movements.
Last minute freight moves will become a thing of the past, with all movements having to be planned in advance.
Meanwhile, Aitken says the road freight transport industry is caught in the middle.
“Importers don’t want to pay for weekend or afterhours work but they also don’t want to pay to hold containers at the port or container depots as a result of their limited business hours.
“We are storing containers at freight hubs longer, which adds costs for double handling, or are delivering goods later than originally expected because of holdups.
We’re also facing higher costs because of Auckland’s congestion, costs which could be avoided by working 24/7,” he added.
