Shipment delays from China to New Zealand increased by 144% pcp in Q3 2022, while shipment delays from China to Australia reduced by 15% - but were still up by 531% compared to Q3 2019, according to researcher project44. “New Zealand is facing particular challenges as carriers prioritise more profitable routes."
“Australia and New Zealand have been facing several delays in their shipments from China owing to the global port congestion and stretched supply chains which have been on the rise since 2020,” said US-based global supply chains researcher project44, which this year established an office in Melbourne.
“Shipment delays from China to Australia reduced by 15% in Q3 2022 compared to Q3 2021, while increased by 93% compared to Q3 2020 and by 531% compared to Q3 2019.”
Shipment delays from China to New Zealand increased by 144% in Q3 of 2022 compared to Q3 of 2021 and by 372% compared to Q3 2020, which was around the start of the impact of the pandemic.
“Comparing pre-pandemic Q3 2019 to Q3 2022, shipment delays from China to New Zealand jumped a whopping 6764%,” said project44.
“Customers who order the same goods in both Australia and New Zealand are, in many cases receiving goods in New Zealand several weeks later than they are received in Australia.”
Josh Brazil, VP Supply Chain Insights, project44, said: “There is still a crisis in the supply chain, especially in New Zealand. Compared to Australia, many exporters and importers are still waiting weeks longer for shipments.”
Exports from the US also showed a significant reduction in delays to Australia, China and Japan, aided by improved congestion in US West Coast ports. Shipment delays dropped by 49%, 21%, and 67% in Q3 2022 compared to Q1 2022 in Australia, China, and Japan.
"However, delays increased by 12% in New Zealand for the same period, demonstrating how supply chain delays even from the US remain a critical bottleneck to the country’s economy," project44 said.
"One of the main reasons shipping to Australia was less affected by delays was that it has more ports for ships to call into in case of congestion. Comparatively, New Zealand has fewer ports where ships can reroute to if congestion exists. However, supply chain experts in New Zealand attribute these delays largely to carriers' shipping reliability since many lines view the country as less profitable."
Outlook
“Supply chains in New Zealand may face even more serious challenges in the upcoming fourth quarter if lockdowns are enacted in China following any new COVID-19 resurgences and as the impacts of prolonged drought affect hydropower, halt shipping, and force major companies to suspend operations.”
Headquarted in Chicago, project44 has with 17 global offices and tracks more than one billion shipments across 170+ countries annually for over 1,200 leading brands, including companies in manufacturing, automotive, retail, life sciences, food & beverage, and oil, chemical & gas.
Project44 established an office in Melbourne in February 2022.
