Business

Supply chain disruption likely to coincide with peak export period - report

13:34 pm on 5 August 2022

The country could face another wave of supply chain disruptions over the summer according to industry experts.

Photo: Massey University

Supply chains have recently been hit hard by pandemic disruptions, including China's lockdowns creating congestion at ports.

Massey University's Supply Chain Risk Analytics Network (SCRAN) recently released its mid-year risk outlook for the country.

It said a number of factors that affect the stability of New Zealand's supply chain may converge over the upcoming northern hemisphere winter, when New Zealand's export season hit its peak.

SCRAN said with winter approaching in China, it was likely that similar lockdowns may become more frequent and widespread.

In Europe, the war in Ukraine was pushing up prices for oil, shipping and raw materials.

It said combined with winter energy demands, it would mean a continued rise in costs and disruptions.

Massey University's senior lecturer in supply chain management Dr Carel Bezuidenhout said supply chains remained stretched due to sluggish shipping, tight finance and overworked staff.

"This means small disturbances can still cause large disruptions," he said.

"Unfortunately for us, these additional challenges are likely to come during New Zealand's peak exporting period over our summer and autumn."