Auckland's consumers will end up paying for port disruption

February 29, 2012

Auckland's consumers will end up paying for port disruption

All of Auckland is losing from the disruption at the port and consumers throughout the country will end up paying extra because of it, the Employers & Manufacturers Association says.

"The disruption from the strikes is adding unacceptable costs throughout the supply chain," said Kim Campbell, EMA's chief executive.

"Exporters and importers are facing serious risks from additional transport costs and losing customers through delays to deliveries.

"Shippers, freight forwarders and trucking companies caught between the strikes and their clients have already incurred a lot of extra costs which they need to recover somehow.

"All our businesses operate on thin margins within very tight supply chain constraints. Any delay adds cost. But businesses need to operate like this in today's world to remain competitive and provide jobs.

"Its regrettable some freight companies are now finding it necessary to impose port disruption surcharges on customers. These are for example $100 per TEU (20 foot container equivalent).

"These costs should be borne by the Maritime Union and CTU since it was their refusal to negotiate new terms and conditions in their employment agreement that led to the present impasse, despite strong assurances that the proposed new agreement would maintain workers' hours, wages and numbers."

ENDS

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