The inside line on shipping THE PANDEMIC HAS SEEN LOGISTICS SUPPLY LINES STRETCHED THIN AROUND THE GLOBE. WE TAKE A CLOSER LOOK AT ONE ASPECT OF THE AUTOMOTIVE IMPORT INDUSTRY.
E
mpty shelves in supermarkets, hardware stores, building supply companies and in auto parts warehouses show there has been no quick fix to the bottleneck in supply to New Zealand. The shortfall in imports caused by production shutdowns because of Covid-19, is not easily made up when throughput at ports is already constrained and ship owners focus on meeting demand in American markets first. Debbie McKenzie, country general manager at Famous Pacific Shipping (New Zealand), has been in the freight forwarding business for many years and leads FPS into its 30th year of operations in New Zealand in 2022. Debbie says she has never experienced such turbulent times in the industry but has a positive outlook for the future.
THE CURRENT SITUATION “Covid-19 has impacted the international shipping industry significantly. A few factors are at play, the two most pressing are a shortage of labour and an increase in demand. “Significant labour shortages have arisen with new variants (most recently omicron) infecting port workforces, crew onboard vessels and transport operators (both road and rail) in most major ports around the world. “The labour shortages at the main ports of Los Angeles and Longbeach on the West Coast of the USA have resulted in over 100 vessels at anchorage awaiting berthing slots at the beginning of February 2022, up from 40 vessels this time last year. “Increased consumer spending around the world has meant significantly more demand for shipping
16
Auto Channel Issue #44 March 2022
space, driving up prices and adding to the difficult situation we find ourselves in today.”
ON THE UPSIDE “There are several new vessels due to be delivered from the shipyards to some larger shipping lines in 2023 and 2024. They have seen a 26 per cent increase in orders in fact, so there is hope within the industry that in 2023 things will be turning around. “Despite all the external factors affecting vehicle shipping, we continue to see a regular number of American muscle cars coming into New Zealand. Even the big auctions like Scottsdale have resumed after a year off due to the pandemic. “Famous Pacific Shipping continues to offer its bespoke one-stop-shop approach for vehicle shipping customers and has increased its commitment to industry events, sponsoring Beach Hop and Takapuna Rocks, because we love cars as much as our customers,” says Debbie.
HOW DOES THE SHIPPING PROCESS WORK? “For the team at FPS it’s all about making things as easy as possible for their clients. Transparency and communication are the key to making it work. “For first timers it can be a little unnerving but less so if you know what to expect.” Debbie walked us through the process of shipping a vehicle from the USA with FPS and answered some frequently asked questions along the way: “Once you have found your dream car or next purchase, give FPS a call. We can assist with collection of the vehicle from anywhere in the
USA. Costs for these services are obtained on a case-by-case basis, either in open or closed transport according to your needs. “An experienced team member will be your one point of contact throughout the entire process. From quote to picking up from our facility, they will update you on the major milestones as they are achieved. They will guide you through New Zealand Customs’ requirements prior to arrival, including assistance in applying for a New Zealand Customs Client Code, if required. “All pricing will be advised in writing and will include collection, consolidated shipping cost, insurance and other related costs. Once approved, FPS can get things underway. We can advise you of the calculation for the premium cost of marine insurance with quotes and strongly recommend this is undertaken. However, if you have your own insurance in place, please just advise our team member. “All insurance policies are arranged in the importer’s name for each shipment and are in place prior to vessel sailing. This insurance covers the shipment from vehicle loading through to the vehicle unloading in New Zealand. We can get this arranged through our broker once you confirm in writing. “Once all is confirmed, we get our specialised and experienced team in the US to contact your seller and get the ball rolling with booking the collection of the vehicle. “All vehicles being exported from the US must have the original title (the ‘pink slip’) and a ‘bill of sale’ confirming seller’s details, buyer’s details and the agreed value of the sale. These documents need to remain with the vehicle and must be included when the vehicle is collected by the transporter. The vehicle moves from the seller to our depot and on arrival at the facility, all vehicles are stored indoors, awaiting the booking with the shipping line to move the container to Auckland. “The pricing offered in the original quote is based on a consolidated container situation. This means shared space in a container. Three vehicles are needed to make the container viable. There can be some delays awaiting the other vehicles to move with your vehicle, but we will keep you informed on this.”
ALL ABOARD “Once all vehicles are on hand, they are processed through US Customs. The original titles for each vehicle are validated by US Customs, allowing them to leave the country, and the container is loaded. The title for your vehicle is then sent to FPS for delivery to you along with the vehicle once all cleared. “The containers are loaded by specialised and experienced loaders in the US. This team handles vehicles bound for all parts of the world. No two container loads are the same, so each container is individually loaded according to the vehicle combination. Your vehicle will be loaded in the most secure and safest way possible. “All containers with used motor vehicles inside must be fumigated at origin following container loading. This is to meet the mandatory Brown Marmorated Stink Bug regulations put in place by the Ministry of Primary Industries (MPI) from 1 October until 30 April (updated annually). Fumigation is handled by our team in the US onsite at their facility.
