Shipping — an insider’s view

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.

Empty 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 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.

Debbie McKenzie, Country GM, Famous Pacific Shipping

Famous Pacific Shipping has increased its commitment to industry events, sponsoring Beach Hop and Takapuna Rocks, because we love cars as much as our customers

“Now the container is ready to load on board the vessel and begin the trip to New Zealand. FPS uses direct services, so the container remains on board the vessel until it arrives in New Zealand. Due to the current shipping crisis, we have seen these direct transit times extend out to 35 to 45 days recently, as shipping lines change and find the most efficient routes to New Zealand.

“Throughout the process and journey to New Zealand, our team member will be in touch with updates and documentation, keeping you informed of progress and what is needed at each stage.

“On arrival, the container is taken to our Auckland facility. It is unloaded by our own team of specialists and the vehicles move into our warehouse for undercover storage until fully cleared by New Zealand Customs and MPI.

“Customs clearance is handled in-house, and your contact will guide you through any additional documentation required. Clearance is started prior to arrival into New Zealand, but sometimes is not completed until New Zealand Customs can inspect the vehicle or goods. FPS pays all charges to New Zealand Customs on your behalf. These will be billed in the final invoice for all services to you.

“All second-hand vehicles imported into New Zealand must be cleared by the Ministry of Primary Industries. This is arranged once the vehicle is unpacked from the container. If instructed by MPI following the initial inspection, then cleaning onsite takes place, before a re-inspection is completed. Our cleaning process is geared to meet MPI requirements — it is not a valet clean!

“Following final MPI and Customs release, the vehicle has a final border check to verify its VIN number and structural integrity. These details are entered into the NZTA website, for matching at the time of final compliance before the vehicle goes on the road. We do not arrange final compliance; this is handled by specialised professionals in this field.

“When all is complete, we will issue the final invoice, to match your quote. You can then collect your vehicle from us — and enjoy!”

TRAPS FOR YOUNG PLAYERS

There are some pitfalls to look out for. Here are a few in Debbie’s experience:

“You must be certain the vehicle has the original title with it. If it does not, then the vehicle cannot be exported. Should this happen, it certainly cannot be registered for use on New Zealand roads — a very costly mistake.

“Often the photos and information provided do not give the true account of the vehicle’s condition or issues. It is best to have someone look at it for you if possible. Let us know if you require this assistance, as we have a team ready to check cars for you as needed.

“Lastly, making payments can be very stressful, especially when paying a private individual — again our team can assist. We can facilitate the payment to the seller once our team in the US has the funds. This way they have sighted the car and title in advance and can then transfer the funds on your behalf.

“So now you know how it works and what to avoid, the current challenges in the industry and what this means for you if you’re considering importing a vehicle. You can approach the process with eyes wide open,” says Debbie

The above is a simple overview of the process. Famous Pacific Shipping’s experienced team is on hand to help at all stages of an arranged vehicle importation.

More information can be found on the Famous Autos website, famouscarshipping.co.nz, or give the team a call if you have any questions on 0508 326 6876..

AS focuses on core rotating electrical business

AS-GROUP NZ’S PRACTICAL EXPERIENCE AND TECHNICAL KNOWLEDGE IS WHAT MAKES THEM SUCCESSFUL IN THE ALTERNATOR, STARTER AND IGNITION PARTS BUSINESS

Owner, sales manager and technical director Blair Rosson says he spotted an opportunity to start the business in 2011 when one of the two main distributors in these components in New Zealand went out of business.

That might have indicated this was not a good business to get into, but as that left the market to complete units, and Blair as a technician and repairer wanted parts and components, he looked overseas to find them.

“There were manufacturers in Europe who were happy to supply components into New Zealand, so I started doing that to support my own business but then I was buying parts for others too,” says Blair.

He is now the authorised New Zealand distributor for Polish alternator and starter motor company AS-PL but has grown the business to bring in +Line, based in Holland, as well as OEM equipment from Bosch, Valeo and Denso.

AS-Group NZ’s stock of complete alternators and starters has grown to more than 1300 individual part numbers and their ignition range has grown to more than 200 part numbers.

“We are still growing our +Plusline range of aftermarket alternators with OEM regulators and OEM clutch pulleys, specifically for late model European cars.”

Blair says the business has stayed focused on the rotating electrical equipment. “There’s a lot of other auto electrical equipment we haven’t got into.”

He says that’s the key difference between ASGroup NZ and other suppliers — that he knows the subject well based on his own practical experience in the repair and reconditioning business.

“There are a lot of suppliers in the parts business who have never touched the components they sell,” he says.

Another key difference is the testing equipment they source and supply, including testers for computer-controlled alternators. As he uses the equipment personally, he can provide expert advice to others. AS-Group is also the AutoDiagger diagnostic tool distributor for Australasia. AutoDiagger is another proven Polish brand.

“We just focus on the core components, on the things we do well,” he says. “It’s our knowledge that sets us apart.”

Blair says his Paraparaumu business is going to have to take on more staff soon but he needs to find new and bigger premises first.

AS-Group is a Blackfern supplier. Any Blackfern member that enquires or purchases product through AS Group in March goes in the draw for 5000 Blackfern reward points. For more information, see www.as-parts.nz or call Blair on 0800 727 000.

Blair Rosson at AS-Group NZ

Power and potential plus

R&J BATTERIES MERGER WITH ACME IS GREATER THAN THE SUM OF ITS PARTS

R&J Batteries is powering into 2022, consolidating the rapid growth it has experienced since opening its first branch in Auckland in 2018, with new outlets and expanded market potential with the acquisition of Acme last year.

“It’s been such a positive merger, bringing together two teams of quality staff as the foundation of a great team in New Zealand,” says R&J Batteries’ business manager Andy Lucas. Andy was formerly operations manager at Acme and he sees the company’s expansion opening up great opportunities for the future.

The company has invested extensively in new premises at Wiri, designed to future-proof further growth, as well as opening additional branches in Christchurch, Hamilton, and Albany since first entering the New Zealand market.

R&J Batteries and Acme originally ‘co-habited’ in Christchurch, sharing premises for several years, and the relationship was consolidated in 2021 with the acquisition, bringing the South Korean Koba brand of batteries on board.

“R&J Batteries is now the exclusive distributor of Koba batteries in New Zealand — it’s a significant brand of top-quality batteries and helps to cement our position as a foremost distributor of premium battery brands,” says Andy.

The company is a market leader, offering everything from standard car batteries to specialist items, and has clocked up 25 years’ experience supplying batteries, lubricants, and accessories. Offering a one-stop-shop for all battery and battery maintenance needs, it stocks world-class brands such as ACDelco, Delkor, US Battery and Fullriver. It is committed to product quality, with environmental and OHS policies that meet international standards.R&J Batteries’ website has been significantly upgraded recently, with a special toggle function that displays information relevant to geographical location, and cross reference guide tools to help customers decide what is the best battery for their needs.

“The merger has been such a positive experience,” says Andy. “We are increasing our number of staff and see so many opportunities for growth. R&J Batteries is a massive brand in Australia. We are recording significant growth here and see the merger as a great way to cement the brand as a key distributor of reliable, quality batteries in New Zealand.

For more information on R&J Batteries products and services, see rjbatt.co.nz or call 0800 546 000.

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