Container lines will continue to call at Auckland

INTERNATIONAL CONTAINER LINES COMMITTEE

Representing the container shipping sector in New Zealand

International Container Lines Committee

MEDIA RELEASE

1 March 2012

Container lines will continue to call at Auckland

Shipping lines have reaffirmed their commitment to Auckland, despite the ongoing strike action currently underway at the port’s container terminals.

International Container Lines Committee Chair Julian Bevis said member lines had met earlier this week to discuss the continuing dispute between Ports of Auckland and the local branch of the Maritime Union. The meeting followed reports that ships calling at Auckland may be subjected to industrial action elsewhere.

Mr Bevis said as long as the port company could assure lines that ships calling at Auckland would be worked, and functional receipt and delivery services for containers would be maintained, the lines would endeavour to continue calling at the port.

“Our members’ contracts are with the port company and, wherever possible, we will stick to those contracts,” Mr Bevis said.

“Shipping companies go where the cargo is. Auckland is an important node in New Zealand’s freight network, and we intend to continue to service customers wanting to put cargo through Auckland,” Mr Bevis said.

Mr Bevis said earlier port closures plus the continued uncertain situation at Auckland had been costly for the lines to manage. Until recently, the lines had absorbed these additional costs; however, with the present extended closure, the carriers would have to recover extraneous costs from port users.

While individual lines would no doubt work hard to minimise cost increases, the prevailing market rates left them little room to manoeuvre, he said.

“The New Zealand container shipping industry is highly competitive and our operating margins reflect that. I don’t see how any lines company can continue to dip into its own pocket to meet the costs associated with railing cargo back to the scheduled delivery port, repositioning empty containers and other equipment, or altering course and speed to accommodate a schedule change,” Mr Bevis said.

Mr Bevis said the ICLC whole-heartedly supported the port company’s drive for improved productivity. It was essential New Zealand businesses had an efficient and cost-effective supply chain linking customers and markets around the world.

Mr Bevis also said it was important that port company management and workers worked collectively to resolve the issues, and that external influences on what was a purely local issue should be avoided in order to find a positive outcome.

ENDS

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