Welcome to the September 2008 newsletter.

August was definitely a month to keep the journalists busy. As I always recommend, sift through what is relevant to you and discard the rest.

First up, the main news item in the latter part of August was the announcement by Ports of Auckland of the potential of merger talks between Ports of Auckland and the Port of Tauranga. This issue is part of the wider issue of port rationalisation in New Zealand however the articles contained this month relate to the announcement, commentary and a Port of Tauranga profit announcement. There is a lot more water to flow under the bridge on this subject.

The other announcement which hit the headlines at the beginning of August was the announcement by Pacific Blue of daily flights between Auckland and Sydney and also of the introduction by Emirates of the A380 on the Trans Tasman route around February next year. This will presumably have the flow on effect of cheaper airfares as airlines fight for bums on seats however it will be interesting to see what, if any, effect this has on cargo space availability and pricing. The two articles below are the announcement of Pacific Blue’s flight and a general commentary article.

On the economy front, MAF have announced their forecasts of a growth in agricultural exports from New Zealand however this is balanced against the article that follows from Dun & Bradstreet of some of the challenges smaller exporters will find in the global market with deteriorating economic conditions overseas.

I’ve also included an article about Fonterra and their plans in China. Interesting from the point of view of a company exporting 160,000 TEU per annum and what lessons and trends can be applied to your business if exporting.

Next up is an article regarding the “experts” prediction that the Kiwi dollar will continue to fall against the US dollar. At the time of writing, a quick check showed the NZD/USD sitting at around 0.66 and trending downwards.

On the overseas economies, included is an article by Fran O’Sullivan with an opinion piece about the impact of the Chinese Olympic Games in the global economy and the potential hangover this will bring. Well worth a read.

In other news of interest, Bledisloe wharf is set to introduce the Vehicle Booking System which has been implemented at Fergusson terminal. The figures from the port indicate much improved turnaround times and efficient use of both the ports and truckies time. Expect to see the VBS charge currently being invoiced for Fergusson terminals to come in to effect for containers transiting through Bledisloe wharf.

Also of interest is an update on ASEAN-Australia-New Zealand Free Trade agreement and potential completion sign off by the end of 2008. Lastly from the General New Section is a link to the APEC Business Travel Card application form – particularly useful for those travelling through Asia regularly on business.

In the Export and Import News, the BAF notices, Peak Season Surcharges and Rate Restorations are coming thick and fast. BAF levels for September have increased however the notices for October are indicating a reduction in BAF. Any decrease in BAF however is offset by either a Peak Season Surcharge or Rate Restoration on many trade lanes. I would recommend that you read through the areas that relate to your business and if uncertain of anything, please feel free to call and discuss.

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 Teng Yun He seen in Nelson earlier this year. The Teng Yun He was built at the Shanghai Edwards Shipyard in Shanghai in 2000 and has a gross tonnage of 20,569 tonne. With a total length of 179 metres and at 27.6 metres wide, her maximum capacity is 1702 TEU which she carries at a maximum speed of 20 Knots. Owned by COSCO Container Lines, the Teng Yun He plies her trade between Korea, Japan, China and New Zealand.
General News

New port boss eyes Tauranga container arm. .
Ports of Auckland's new managing director Jens Madsen dropped a bombshell in yesterday's annual result by announcing the port's interest in buying Port of Tauranga's container business. more

Auckland-Tauranga port merger back in play.
The power plays in the port sector took another twist today with Ports of Auckland revealing it has approached Port of Tauranga about buying its container business. more

Port's Tauranga bombshell seen as attempt to restart merger talks.
Interest by Ports of Auckland in buying the container business of rival Port of Tauranga is "kite-flying", says First NZ Capital. Ports of Auckland managing director Jens Madsen made the surprise announcement during a meeting to release the company's full-year result on Wednesday. Previous merger talks between the ports failed last year. more

Shake-up essential for sector says Port of Tauranga chief.
. New Zealand's port system needs to be reorganised before the shipping industry decides the country is merely a stopover from Australia, says Port of Tauranga chief executive Mark Cairns. more

Port of Tauranga profits up - 25pc hike in container traffic.
Port of Tauranga has shrugged off global financial troubles by increasing trade and posting a record annual profit of more than $40 million - double the profits of its Auckland rival. more

Pacific Blue's Sydney flights.
Pacific Blue is expanding its activities out of Auckland, with the introduction of nine return flights a week to Sydney starting in October. The move comes a fortnight after the company said it would introduce services between Auckland and Melbourne next month. more

'Bloodbath' looms on Tasman crossing.
From early next year a new plane will make its big presence felt flying the Tasman, a route one carrier says could see commercial "carnage" for airlines. more

Primary sector tipped to save NZ.
A surge in agricultural export earnings will lift the New Zealand economy out of the recessionary doldrums over the next two years, according to latest forecasts from the Ministry of Agriculture and Forestry. more

Challenging year for NZ exporters - Dun & Bradstreet.
New Zealand exporters are facing a challenging year as global economic conditions deteriorate, says credit reporting agency Dun & Bradstreet (D&B). The impact of global inflationary pressures, declining US consumer demand and the re-pricing of credit were eroding business profit margins and making it more difficult to sell products to key trading nations. more

Kiwi giant aims to milk the China cash cow.
Fonterra China managing director Bob Major likes the dynamism, sheer rate of growth and the bold decisions people make in China. "The rest of the world is very static by comparison," he says. more

Kiwi will keep on falling: experts.
The New Zealand dollar closed below US70c for the first time in 11 months last night and with more Reserve Bank rate cuts on the way there is little to stop it falling further, currency watchers say. more

Fran O'Sullivan: Counting the Olympic costs.
China looks poised to bust records and score the most gold medals at the 29th Olympiad. But all the signs are it will be left nursing a sharp "economic hangover" as the Chinese economy adjusts to the weeks of lost production enforced by authorities trying to bring pollution down to "acceptable" levels for the Olympic athletes. more

Bledisloe to benefit from VBS too.
The Vehicle Booking System (VBS) will be introduced at the Bledisloe container terminal on 8 September, just a month before the successful system celebrates its first birthday at Auckland’s Fergusson container terminal. more

ASEAN-Australia-New Zealand FTA (AANZFTA) update.
Following the 23–25 Singapore negotiating group meeting between the Association of South East Asian Nations (ASEAN), Australia and New Zealand (AANZFTA), a credible deal is now within reach. more

The APEC Business Travel Card.
Time is precious when you travel overseas for business, so why wait around in queues? The APEC Business Travel Card provides accredited business people with streamlined access to participating APEC countries. more

Export News
Domestic trucking fuel surcharge for September: 8.8% (subject to change).
Designation of Certification Bodies to Issue Certificates of Origin under the NZ-China Free Trade Agreement. The Chief Executive of the New Zealand Customs Service is to designate Independent Verification Services Ltd of Hamilton, the New Zealand Chambers of Commerce Inc and the Wine Institute of New Zealand Inc to issue certificates of origin under the New Zealand-China Free Trade Agreement (FTA) to enable New Zealand exports to China to claim the FTA tariff preference. more
Hapag-Lloyd Implementation of Terminal Handling Charge. For more information, please contact me for the full notice.
Australia & Pacific Islands
Swire Shipping: 1 September, CAF increase to Pacific Islands - now 52.5%.
Maersk: 15 September, BAF increase to Australia – NZ$593/20’ & NZ$1184/40’.
North Asia
Tasman Orient: 1 September, BAF increase to US$800/20’ & US$1600/40’.
COSCO: 1 September, BAF increase to US$775/20’ & US$1550/40’.
MOL: 1 September, BAF increase to US$775/20’ & US$1550/40’.
South East Asia, Indian Sub Continent
and Middle East
OOCL: 1 September, BAF increase to US$930/20’ & US$1860/40’.
Maersk: 1 September, BAF increase to US$850/20’ & US$1700/40’.
MOL: 1 September, BAF increase to US$ US$930/20’ and US$1860/40’.
Tasman Orient: 1 September, BAF increase to US$850/20’ & US$1700/40’.
COSCO: 1 September, BAF increase to US$775/20’ & US$1550/40’.
Hapag-Lloyd: 19 September, revised BAF to US$500/TEU.
Europe
Hapag-Lloyd: 1 September, ANS Service, BAF increase to US$891/TEU and OCE Service to US$812/TEU.
CMA CGM: 1 September, BAF set at US$867/TEU.
Maersk: 1 September, to Mediterranean, BAF increase to US$850/20’ & US$1700/40’.
Maersk: 1 September, to North Europe, BAF increase to US$859/20’ & US$1718/40’.
Marfret: 1 September, BAF increase to US$860/20’ & US$1720/40’.
North America
Hapag-Lloyd: 11 September, to North America, South America & Caribbean, BAF increase to US$1069/TEU.
Marfret: 22 September, BAF increase to US$995/20’ & US$1990/40’.
Maersk: 15 September, BAF increase to US$1100/20’ & US$2200/40’.
Import & Customs News
Domestic trucking fuel surcharge for September: 8.8% (subject to change).
Australia & Pacific Islands
Maersk: 15 September, BAF increase to Australia – US$395/20’ & US$715/40’.
North Asia
Tasman Orient: 1 September, BAF increase to US$800/20’ & US$1600/40’.
COSCO: 1 September, BAF increase to US$775/20’ & US$1550/40’.
COSCO: 15 September, Rate Restoration of US$250/20’ & US$500/40’.
MOL: 1 September, BAF increase to US$775/20’ & US$1550/40’.
MOL: 1 September, BAF Increase from Japan to US$800/20’GP & US$1600/40’GP.
MOL: 15 September, Rate Restoration of US$250/TEU.
South East Asia, Indian Sub Continent
and Middle East
OOCL: 1 September, BAF increase to US$930/20’ and US$1860/40’.
OOCL: 8 September, Peak Season Surcharge of US$150/20’ & US$300/40’.
Maersk: 1 September, BAF increase to US$850/20’ & US$1700/40’.
Maersk: 1 September, Peak Season Surcharge of US$150/20’ & US$300/40’.
MOL: 1 September, BAF increase to US$ US$930/20’ and US$1860/40’.
MOL: 1 September, Peak Season Surcharge of US$150/20’ & US$300/40.
Tasman Orient: 1 September, Peak Season Surcharge of US$250/20’ & US$500/40.
Tasman Orient: 1 September, BAF increase to US$850/20’ & US$1700/40’.
COSCO: 1 September, BAF increase to US$775/20’ & US$1550/40’.
COSCO: 15 September, Rate Restoration of US$250/20’ & US$500/40’.
Europe
Hapag Lloyd: 1 September, BAF increase from North Continental Ports to EUR677/TEU.
Hapag Lloyd: 1 September, BAF increase from Mediterranean Ports to US$1056/TEU.
CMA CGM: 1 September, BAF set at US$867/TEU.
Maersk: 1 September, from Mediterranean, BAF increase to US$850/20’ & US$1700/40’.
Maersk: 1 September, from North Europe, BAF increase to EUR551/20’ & EUR1102/40’.
Maersk: 13 September, Peak Season Surcharge of Eur100/TEU.
COSCO: 15 September, Rate Restoration of US$250/20’ & US$500/40’.
North America
Hapag-Lloyd: 15 September, EFAF increase to US$1066/TEU.
Maersk: 15 September, EFAF increase to US$1075/20’ & US$2150/40’.
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