Business

Supply lines suffering further delays due to Omicron outbreak

14:11 pm on 21 March 2022

Domestic supply lines are suffering further delays because of worker shortages caused by the Omicron outbreak.

Ports of Auckland (file photo) Photo: RNZ / Kymberlee Fernandes

The Custom Brokers and Freight Forwarders Federation (CBAFF) said its members did not have enough people in depots or warehouses to unload the usual volume of goods because many of their staff were isolating at home.

Chief executive Rosemarie Dawson said delivery times between Auckland and Wellington had now stretched to five days.

"Ports of Auckland has had many staff sick or isolating, which has exacerbated congestion issues and more ships are diverting to Northport, near Whangārei," she said.

This meant longer journeys for trucking companies who also had staff absent, she said.

"All this adds to pricing in stores.

"The longer freight sits and the longer it takes to deliver, the higher the costs. Importers have to pass those costs on to clients, who ultimately pass it on to consumers."

She said the industry was as prepared as it could be for the outbreak, with many freight forwarders splitting their teams and ports separating workers into bubbles.

"Every part of the industry is doing their best, but every link is affected."

Dawson said South Island disruptions were not on par with what its North Island members were experiencing.

The spread of the Omicron variant was the latest challenge the industry faced after what had been a very difficult past two years, she said.

The emergence of Covid-19 and subsequent lockdowns sparked an online shopping boom which resulted in a massive sustained increase in the volume of freight that was entering into the country, she said.

Freight forwarders globally were also dealing with a shortage of shipping containers and hugely increased demand for container space, which caused freight costs to spiral higher.

Dawson said port congestion had increased to the point that some international vessels would often skip New Zealand ports.

CBAFF was reminding its customers to be realistic about their delivery expectations in the current environment.