Welcome to the December 2008 newsletter.

Well, the elections are over and things can finally get back to normal - or can they?

A key issue at the front of importers and exporters minds at the moment is foreign exchange rates, particularly the USD, EUR and AUD. Reading a number of articles recently, foreign exchange commentators are advising against importers playing the foreign exchange markets and locking in rates in advance. With “the risk to the Kiwi remains to the downside due to the prospect of further easing to monetary policy to aid the stalling economy”, waiting for the NZD to go up against other currencies in the current market could make for some very lean profit margins for importers.

For Exporters, the decline in the USD is good news on one hand however balanced against falling commodity prices and reduced global demand, 2009 could make for an interesting time for both importers & exporters alike.

Following from this in the General News section is a call for public submissions regarding a review of the CER Rules or Origin with Australia. Follow the link in the General News section noting that the cut off is not far away. On the subject of Australia, it is looking highly likely that our neighbours will be joining the P4 group of countries in the near future. It will be interesting to see the impact of Australia’s inclusion in the P4 on the CER currently in place.

On to New Zealand’s ports - the merger of Otago & Lyttelton ports has reared its head again. Working on the basis that where there is smoke there is fire, I would expect at some point in time we will see a merger or mergers taking place of New Zealand ports.

By the time you read this, the Auckland port strike will be over however I have included an article for general interest. As at the beginning of December there does not appear to be a resolution between the two parties and the prospect of further strikes remain.

Of general interest in the news section is an article regarding Air New Zealand’s use of alternative fuel sources. The practical implications will be the perception of New Zealand products in overseas markets from a sustainability context. There is also an article about hijackings and commentary about the likely hood of increases in insurance premiums the more these events occur.

The final articles include a media release of New Zealand’s trade deficit being better than expected and as a consequence of a new government being elected, the announcement of a new minister for Customs.

Finally, in the Import & Export News, the prevailing news is the downwards movement in BAF levels. As some of the shipping line notices start flowing in for January, there is a clear and sizeable move downwards on BAF levels in the new year.

Read on…

Glen McLuckie
Managing Director

PH +64 9 275 5160
MB 021 764 604
EM glen@marchlogistics.co.nz
WEB www.marchlogistics.co.nz

This Months Profile
Above is the container ship OOCL Melbourne seen in Auckland earlier this year. The OOCL Melbourne was built at the Koyo Dockyard Co. Ltd in Japan in 2003 and has a gross tonnage of 24,610 tonne. With a total length of 235.6 metres and at 32.2 metres wide, her maximum capacity is 2762 TEU which she carries at a maximum speed of 22.6 Knots. Operated by OOCL, the OOCL Melbourne plies her trade between Singapore, Australia and New Zealand.
General News

Low dollar not a quick fix for exporters..
. The New Zealand dollar has fallen sharply this year and is now trading at about 56c against the greenback. It is tipped to fall even further, so you might expect the export sector would be celebrating. more

Review of the CER Rules of Origin (ROO): Call for Public Submissions.
The Ministry of Economic Development and the Ministry of Foreign Affairs and Trade invites submissions on the upcoming review of the Rules of Origin (ROO) under the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), known as CER. more

Australia asks to join new free trade deal.
The free trade agreement begun by New Zealand, Singapore, Chile and Brunei - known as the P4 - two years ago is set to expand even further with two more countries, Australia and Peru, as well as the United States wanting to join. more

Christchurch City wants Lyttelton Port delisted.
Christchurch City Council's investment arm would like to own 100 per cent of Lyttelton Port Co (LPC) one day, but for now is trying to buy 2.48 per cent more of the company than it owned yesterday morning. more

Simon Hartley: Port merger could be just the start.
There are too many ports in New Zealand, but until last week none of the 14 port companies or shipping lines had moved to kick-start a much anticipated rationalisation programme. Port Otago and Lyttelton Port Company said they had signed a memorandum of understanding to explore a merger of operations. more

Container wharves target of Auckland port strike.
Ports of Auckland says its container wharves will be hit by looming 24-hour strike, but its general wharves on the Manukau and Waitemata Harbours will continue to operate. more

Air NZ chasing holy grail of alternative fuel sources.
Air New Zealand will put its biofuel through a punishing two-hour trial over the Hauraki Gulf hoping it will emerge as the "holy grail" of alternatives to traditional jet kerosene. more

Marine underwriter says hijackings 'unfolding in an orderly fashion'.
Piracy on the high seas used to be a simple affair: Climb on board, take the valuables, and go. But now on the volatile waters off east Africa, pirates are carrying rocket launchers, demanding multimillion dollar ransoms and hijacking 329-metre oil tankers. So the cost of insurance for ships is rising along with the risk. more

Trade deficit $942m - better than expected.
New Zealand had a $942 million trade deficit in October, below the average for October for the preceding five years as a percentage of exports. more

New Minister of Customs.
With the election of the National-led government, comes the appointment of the new Minister of Customs, Hon Maurice Williamson. Mr Williamson is the MP for Pakuranga and has held that seat since 1987.
Export News
Domestic trucking fuel surcharge for December:
4.8% (subject to change).
Australia & Pacific Islands
PFL: 4 December, BAF decrease to +37.60% & CAF increase to +18.6%.
Hapag-Lloyd: to Fiji, effective 10 November, CABAF increase to 44.24%.
Tasman Orient: Exports to Australia, Import Documentation fee increases to AU$75/bill of lading.
LCL to Fiji. Effective immediately, all packaging materials must be ISPM15 complaint.
Sofrana to New Caledonia, Papua New Guinea, Solomon Island’s, Vanuatu, Wallis & Futuna: Effective 24 November, BAF decrease to +43.7%.
Sofrana to Tonga & Samoa’s: 7 December, BAF decrease to +37.6% & CAF increase to +18.6%.
Swire Shipping to New Caledonia, Pacific Islands & PNG: 28 November, BAF decrease to 43.5%
North Asia
MOL: 1 December, BAF decrease to US$425/20’ & US$850/40’.
NYK: 1 December, BAF decrease to US$425/20’ & US$850/40’.
Tasman Orient: 15 November, BAF decrease to US$565/TEU & US$1130/FEU.
OOCL: 1 December, BAF decrease to US$575/20’ & US$1150/40’.
South East Asia, Indian Sub Continent
and Middle East
MOL: 1 December, BAF decrease to US$565/20’ & US$1130/40’.
NYK: 1 December, BAF decrease to US$565/20’ & US$1130/40’.
OOCL: 1 December, BAF decrease to US$565/20’ & US$1130/40’.
Tasman Orient: 1 December, BAF decrease to US$550/TEU and US$1100/FEU.
LCL: 1 December, BAF reduced to US$23 per w/m for all cargo via Singapore.
Hapag-Lloyd: 10 December, Revised BAF of US$425/TEU.
Maersk: 12 November, BAF decrease to US$575/20’ & US$1150/40’.
Europe
CMA CGM: 1 December, BAF decrease to US$558/20’ & US$1116/40’.
Hapag-Lloyd: 1 December, revised BAF of US$738/TEU to North Continental & US$614/TEU to Mediterranean ports.
OOCL: 1 December, adjusted BAF to US$416/20’ & US$832/40’.
Hapag-Lloyd: 1 December, BAF decrease to US$738 to Europe, US$614 to Mediterranean ports.
MOL: 1 December, BAF decrease to US$438/20’ & US$876/40’.
Marfret: 17 December, BAF decrease to US$595/20’ & US$1190/40’.
Hapag-Lloyd: 1 December, Suez Canal Transit Surcharge increased to Eur 25/TEU.
Maersk: 12 November, BAF decrease to Northern Europe to US$584/20’ & US$1168/40’.
North America
Hapag-Lloyd: 1 December, revised BAF of US$948/TEU.
Marfret: 15 December, BAF decrease to US$896/TEU.
CMA CGM: 1 December, BAF set at US$896/20’ & US$1792/40’.
LCL: 17 December, BAF reduced to US$32 per w/m.
Import & Customs News
Domestic trucking fuel surcharge for December: 4.8% (subject to change).
MAERSK increase Import THC. Current: NZD 325/555/325/555 for 20’dry/40’dry/20’ reefer/40’ reefer
New: NZD 385/435/555/555 for 20’dry/40’dry/20’ reefer/40’ reefer.
Australia & Pacific Islands
PFL: 4 December, BAF decrease to +37.60% & CAF increase to +18.6%.
North Asia

MOL: 1 December, BAF decrease to US$425/20’ & US$850/40’.
NYK: 1 December, BAF decrease to US$425/20’ & US$850/40’.
Hapag-Lloyd: 1 December, BAF decrease to US$565/TEU.
Tasman Orient: 15 November, BAF decrease to US$565/TEU & US$1130/FEU.
South East Asia, Indian Sub Continent
and Middle East
MOL: 1 December, BAF decrease to US$565/20’ & US$1130/40’.
NYK: 1 December, BAF decrease to US$565/20’ & US$1130/40’.
OOCL: 1 December, BAF decrease to US$565/20’ & US$1130/40’.
Tasman Orient: BAF decrease to US$550/TEU and US$1100/FEU.
Europe
CMA CGM: 1 December, BAF decrease to US$558/20’ & US$1116/40’.
OOCL: 1 December, adjusted BAF to US$694/20’ & US$1388/40’.
MOL: 1 December, BAF decrease to US$438/20’ & US$876/40’.
Hapag-Lloyd: 1 December, BAF decrease to EUR 590/TEU from Europe, US$707 from Mediterranean ports.
Swire Shipping: 1 December, BAF set at US$560/TEU.
North America
Hapag-Lloyd: 15 December, revised BAF of US$896/TEU.
ANL: 15 December, revised BAF of US$896/TEU.
LCL: 15 December, BAF reduced to US$34 per w/m.
Maersk: 15 December, BAF decrease to US$905/TEU.
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