Manufacturers continue to face additional freight costs, as well as delays and disruptions to supply chains, with the road and rail closures following the Kaikoura Earthquake, say the New Zealand Manufacturers and Exporters Association (NZMEA).
NZMEA Chief Executive Dieter Adam says, “We have had feedback from manufacturing members describing significant delays for some products to reach their destination, some with uncertainty as to when this will be resolved.
“Manufacturers are facing freight surcharges of around 15% currently, with other significant costs in adjusting and adapting their supply chains.
“We support Mainfreight’s call for KiwiRail to open up a dedicated coastal shipping option to take the pressure off roads that are not suitable for the level of freight. Given the predicted long time frames to fix the damaged roads and rail services, this kind of solution would be a huge help to restore more normal operating conditions for manufacturers and other businesses.
“Finding and implementing such a solution is a matter of urgency. This is not only a commercial problem, but one that hits manufacturers' viability and ability to compete, disrupting vital supply chains. The Government should be willing to step in to help facilitate a solution if one cannot be found soon.” Said Dieter.
An NZMEA press release - Friday 2 December 2016
