Persistent supply chain disruption has forced local shipping container services firm ContainerCo to bring forward investment to help ease the pressure.
File photo. Containers at Lyttleton Port. Photo: RNZ / Nate McKinnon
Supply lines have been hit over the past 12 months by port closures and disrupted shipping services as they struggle to cope with consumer demand and rebound in global activity.
Freight companies typically hire containers from shipping firms and return them to a storage facility by specific date.
However, delays at ports means containers are not where they are needed and a lack of ships is causing congestion at container depots.
ContainerCo operates 11 depots around the country and managing director Ken Harris said many of its facilities were above capacity.
"It is costly and frustrating for importers, freight forwarders and transport companies when they are unable to return containers to designated container parks," Harris said.
"It can be an even worse problem for exporters if the supply of containers suitable for exports is disrupted."
The company has brought forward investment to expand its current facilities to help minimise disruptions.
"We will re-build specialised facilities covering around eight hectares in Auckland, improving supply chain resilience and capacity", Harris said.
The company's container park in Penrose and the Oak Road Park are being rebuilt this year and an additional yard is expected to be added in South Auckland mid 2022.
Construction work would halve capacity process as available storage would be cut from 5000 twenty-foot equivalent units (TEU) to 2500 for eight to 10 weeks.
Harris said the company had been holding off on doing this work because it thought the current congestion issues would have eased by now.
He expected importers would struggle to return containers to container yards between now and Christmas at least.
"I think the difficulties will be more severe than last year."
The situation would not has be as challenging for exporters, he said.
Harris said the company also looking to acquire land in Auckland, the Bay of Plenty and Hamilton for new depots, which would help double capacity within six years and improve depot efficiency.
Meanwhile, ContainerCo was having to cope with labour shortages with up to 15 percent of its 300 workforce sidelined as they waited for Covid-19 test results.
Harris said many staff interacted with port workers and the company had pushed for it to be prioritised in the government's Covid-19 vaccine roll-out.
"But they said that wasn't possible" .
"As we sit here at the moment we have a full range of staff situations and ... we are sitting on less than 30 percent vaccinated."