Exports Face Delays: Global Shipping Challenges Impact New Zealand Dairy
Source: The DairyNews
New Zealand's dairy exports are encountering significant delays, with some shipments taking nearly three weeks longer to reach international markets. The disruptions are attributed to geopolitical tensions in the Red Sea and capacity restrictions in the Panama Canal due to drought.
Santiago Aon, Fonterra's director of global supply chain, revealed that carriers are diverting around the Cape of Good Hope to avoid conflicts in the Red Sea. This rerouting increases transit times for the co-operative's cargo by 14-17 days. Aon emphasized the fluid and dynamic nature of global shipping, acknowledging potential congestion and delays in the coming weeks.
While the meat and dairy sectors haven't experienced major delays in traversing the Panama Canal, drought-related capacity restrictions are causing delays of up to a week for some vessels. Fonterra is actively collaborating with key partners to prioritize and manage orders in response to the changing shipping landscape.
Concerns arise within the meat industry, particularly for companies targeting the lucrative United Kingdom Easter trade. Shipping delays could impact lead-in times, potentially affecting chilled beef and lamb exports. However, as of now, there are no reports of significant delays to major markets.
Global shipping disruptions stem from Houthi rebel attacks on cargo ships in the Red Sea and drought conditions affecting the Panama Canal. Houthi rebels, controlling much of Yemen, are using drones and missiles in support of the Hamas terrorist group. The Red Sea, a vital route for shipping, has seen a significant decrease in container ship traffic, with carriers avoiding the region.
On the other side of the globe, prolonged drought conditions in Panama, exacerbated by El Niño, have led to canal lock operation delays. The Panama Canal Authority has reduced daily ship transits, and some vessels are offloading cargo for overland transportation to meet new draught restrictions.
While shipping disruption is not expected to reach the scale of the COVID-19 era, exporters fear prolonged disruptions could impact the delivery of empty containers, affecting apple and kiwifruit harvests. Carriers with booked slots for the Panama Canal face minimal delays, but others may wait up to a week.
The NZ Council of Cargo Owners emphasizes that extended disruption could have significant consequences, impacting exporters, importers, and resulting in higher transport costs and delays, particularly for perishable items. The Ministry of Foreign Affairs and Trade is monitoring the situation, and data on the impact to New Zealand trade is not yet available. The Suez Canal's importance as a route to Europe and North Africa adds to concerns, with potential consequences for exporters and importers, including higher transport costs and delays, especially for perishable items.
While the meat and dairy sectors haven't experienced major delays in traversing the Panama Canal, drought-related capacity restrictions are causing delays of up to a week for some vessels. Fonterra is actively collaborating with key partners to prioritize and manage orders in response to the changing shipping landscape.
Concerns arise within the meat industry, particularly for companies targeting the lucrative United Kingdom Easter trade. Shipping delays could impact lead-in times, potentially affecting chilled beef and lamb exports. However, as of now, there are no reports of significant delays to major markets.
Global shipping disruptions stem from Houthi rebel attacks on cargo ships in the Red Sea and drought conditions affecting the Panama Canal. Houthi rebels, controlling much of Yemen, are using drones and missiles in support of the Hamas terrorist group. The Red Sea, a vital route for shipping, has seen a significant decrease in container ship traffic, with carriers avoiding the region.
On the other side of the globe, prolonged drought conditions in Panama, exacerbated by El Niño, have led to canal lock operation delays. The Panama Canal Authority has reduced daily ship transits, and some vessels are offloading cargo for overland transportation to meet new draught restrictions.
While shipping disruption is not expected to reach the scale of the COVID-19 era, exporters fear prolonged disruptions could impact the delivery of empty containers, affecting apple and kiwifruit harvests. Carriers with booked slots for the Panama Canal face minimal delays, but others may wait up to a week.
The NZ Council of Cargo Owners emphasizes that extended disruption could have significant consequences, impacting exporters, importers, and resulting in higher transport costs and delays, particularly for perishable items. The Ministry of Foreign Affairs and Trade is monitoring the situation, and data on the impact to New Zealand trade is not yet available. The Suez Canal's importance as a route to Europe and North Africa adds to concerns, with potential consequences for exporters and importers, including higher transport costs and delays, especially for perishable items.
