1. Blair Morris – GM Commercial 31 August 2016
Supply chain collaboration – Global freight solutions
Blair Morris – GM Commercial
31 August 2016

2. New Zealand’s ocean freight challenge
NZ SHIPPING –
Global context
 6 M TEU
22 M TEU
24 M TEU
Global main trade flows
1 M TEU
NZ main trade flows (NZ westbound)
0.2 M TEU
NZ secondary trade flows (NZ eastbound)
0.4 M TEU 
Data source: Kotahi estimates based on FIGS and industry analysis 
Bigger ship
Bigger ship

3. Impacts on NZ services coming?
IDLE CONTAINERSHIP (units idle breakdown by size range >1,000 TEU)
Circa 1.6 M TEU idle vessel capacity… now higher than during GFC!
2016: Demand growth 1.8%; Supply growth 4.3% M TEU capacity still coming!
Shipping lines already in the red, some only hanging in due to low bunker and charter rates
Parallels to GFC situation.
Small change e.g. fuel will be tipping point
Expect further rapid industry consolidation
AVERAGE CARRIER* OPERATING MARGINS BY QUARTER (%)
AFTER GFC
TODAY
Impacts on NZ services coming?
2009
2010
2015
2016

4. Kotahi works together with exporters, importers and industry partners
to create a sustainable export supply chain,
and drive greater efficiency for customers and partners.

5. Kotahi = Collaboration
Our greatest strength lies in collaboration, not competition
JOSEPH RAIN, Author & entrepreneur
Coming together is a beginning,
staying together is progress,
and working together is success.
HENRY FORD

7. Kotahi capacity management benefit
Ensures efficient sustainable service in all market conditions.
SMOOTHING DEMAND TO ENSURE EXPORTER SPACE AVAILABILITY
Overall capacity
Kotahi space requirement  
Small exporter space requirement
WEEK

8. Larger ships are the future for NZ exporters
CONTAINERSHIP COST PER TEU SLOT MILE
J..PLM,
Cents/TEU mile
-26%
TEU
Costs per TEU
Capacity in TEU
MARITIME SHIPPING
TRANSHIPMENT
INLAND TRANSPORTATION

9. Enhanced Maersk Line Triple Star, 9500 TEU
Fast transit to North Asia
Greater range of connections over China ports
Uniquely high proportion of refrigeration plugs
Fuel efficient
22% carbon reduction per container
Stable capacity with more flexibility

10. Building an efficient supply chain through collaboration
AUCKLAND
TAURANGA
KEY
Imports  Export
Efficient big ship routing
Matched north/south freight flows
Intermodal network (Savill Drive IFH)
PALMERSTON NORTH
Fully developed deep water port
 Domestic
Rail

11. Supply chain
collaboration
(Video)

12. Processed lumber International competitiveness Sustainable services
Port availability

13. Key points
Ocean freight volatility = exporters need to take control of our future 
We’re on the journey = building a collaborative supply chain
Larger ships arrive = keeping NZ competitive on the world stage ?
Watch out? Over investment in landside and port infrastructure

14. We’re on the journey…
…stay in touch.