'Long way to go': Analysis reveals supply chain issues costing NZers $1.7b each year
Newshub
3/02/2023
© Newshub
Watch: A new analysis has revealed supply chain issues are costing New Zealanders $1.7 billion a year.
A new analysis has revealed supply chain issues are costing New Zealanders $1.7 billion a year.
As an exporting nation, Aotearoa relies heavily on trade but supply chain troubles are weighing us down.
"We've got a long way to go is the key message in terms of getting back to where we were pre-COVID," CentrePort CEO Anthony Delaney said.
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Delaney said the supply chain has been hit by a series of problems both local and international affecting both import and export.
For instance, locally, a shortage of liquid CO2 impacts the freighting and shelf-life of produce and the whole brewing process.
But that's not the only problem brewers are facing.
"Transport logistics have been an issue over the last few years with lower numbers of truck drivers being able to get the product out there," Brewers Association of NZ's executive director Dylan Firth said.
An analysis by consultancy TMX Global has now revealed the extent of the supply chain problem.
The aftermath of COVID lockdowns, combined with higher shipping costs, worker shortages, weather events and the ongoing war in Ukraine, have caused a supply chain bottleneck collectively costing New Zealand businesses $1.7 billion a year in lost revenue.
"The impacts have been right along the entire supply chain and New Zealand is unfortunately extremely exposed from that perspective being an exporting nation," TMX Global supply chain executive director Craig Albiston said.
The big question now is whether these pressures fall away in the next few years, as the global supply chain adapts, or whether the costs will be forever baked into the transport expenses of companies worldwide.
"It is improving relative to where we've come from," Delaney said.
But when Newshub asked Delaney 'are we still being impacted?' he said "yep, still."
And Auckland's catastrophic flooding could set us back again.
"There's been a huge number of major roads that have been washed out and from a land transport perspective, trying to move goods around the country and to port, massive disruption," Albiston said.
The Government has tasked the Productivity Commission with investigating New Zealand's supply chain resilience.
Transport Minister Michael Wood told Newshub their focus is on freight and "how we position this system to be ready for major long-term trends such as climate change and international volatility".
Because it's a resilient supply chain that keeps our little trading nation moving.
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