Latest / Early Edition with Ryan Bridge / Roger Gray: Port of Auckland CEO on the shipping collaboration between Hapag-Lloyd and Maersk Gemini

Transcript

Roger Gray: Port of Auckland CEO on the shipping collaboration between Hapag-Lloyd and Maersk Gemini · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: A collaboration between two of the world's largest shipping companies
• 0:02
  Speaker 1: could drive down sea freight prices. Happag Lloyd and Mask's
• 0:07
  Speaker 1: Gemini Corporation are starting up next month. This co lab,
• 0:11
  Speaker 1: which will cover the ocean freight network on East West trades.
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  Speaker 1: It's meant to see shipping prices drop immediately. Why improve
• 0:18
  Speaker 1: stability in the red Sea imports of Walk and Chief
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  Speaker 1: executive Roger Gray joins me. Now, good morning to here, Roger,
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  Speaker 1: Good morning Andrew. Cheaper prices. That's good.
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  Speaker 2: Yeah, Well, look, I think exporters and importers across New
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  Speaker 2: Zealand will be very happy with this initiative from Papak
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  Speaker 2: Lord and mrs.
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  Speaker 1: It's cheaper because it's called a hub and spoke operation.
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  Speaker 1: Can you explain that for me.
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  Speaker 2: Yeah. What they're going to do is they're going to
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  Speaker 2: most cargo on bigger ships, more reliably with a better schedule,
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  Speaker 2: into big hub ports and then they'll use smaller ships
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  Speaker 2: to come down to ports like Auckland and Total.
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  Speaker 1: So that means though freight could take longer because there's
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  Speaker 1: a couple more movements.
• 0:57
  Speaker 2: Yeah, that's right, there could be. But what it will
• 1:00
  Speaker 2: be important for both importers and exports will there'll be
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  Speaker 2: scheduled reliability. They'll know when their cargo will arrive. And
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  Speaker 2: that's been one of the biggest complaints we've had from
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  Speaker 2: customers over the last four or five years, is ships
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  Speaker 2: not arriving on time, and this is a really good
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  Speaker 2: initiative to get better at that.
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  Speaker 1: So a arrival stability is more important than timiness.
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  Speaker 2: Yeah. The reason for that is if your Woolworths and
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  Speaker 2: you're ordering in food, you want to know when it's
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  Speaker 2: going to arrive because you can then manage your inventries
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  Speaker 2: to make sure you don't have stocks running out in
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  Speaker 2: the stores. So yeah, this reliability is what customers talked
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  Speaker 2: to us a lot about.
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  Speaker 1: And how does it improve stability in the Red Sea.
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  Speaker 2: Well, there's two things that are happening. One happy Lloyd
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  Speaker 2: and Musk will be running these bigger ships with more tonnage,
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  Speaker 2: so there'll be guaranteed to be flowing. The other thing
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  Speaker 2: is you're probably aware that the Hooti rebels have acknowledged
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  Speaker 2: that they're going to stop attacking ships unless they're directly
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  Speaker 2: linked to Israel, so that means the ships won't be
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  Speaker 2: going around the bottom of Africa to get to Europe.
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  Speaker 2: So this should be a really good two things coming
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  Speaker 2: together at the same time, should be really good for
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  Speaker 2: the industry, all.
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  Speaker 1: Right, And when does it take hold? When does it
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  Speaker 1: start impacting?
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  Speaker 2: Well, we expect that we'll start to see it within
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  Speaker 2: the next few months down here in New Zealand. Whilst
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  Speaker 2: the Gemini agreement is not actually flowing directly here, we'll
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  Speaker 2: start to see it coming into Australia and the Upper
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  Speaker 2: and that should then provide us with the opportunity to
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  Speaker 2: see this come in the next few months.
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  Speaker 1: Hey, Roger, thank you so much for getting up early
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  Speaker 1: for us. That is Roger Gray, who is the CEO
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  Speaker 1: of the Portugalkand for more.
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  Speaker 2: From Early edition with Ryan Bridge. Listen live to News
• 2:47
  Speaker 2: Talks it'd be from five am weekdays, or follow the
• 2:50
  Speaker 2: podcast on iHeartRadio.