Kotahi, New Zealand’s largest containerised freight manager, and A.P. Moller Maersk, a global integrated logistics company, have signed a second long-term freight agreement until 2034.
This agreement will provide New Zealand international trade with a stable, resilient, and sustainable global supply chain for primary industry exporters.
“Global supply chain disruptions, from pandemics to geopolitical and climatic events, are becoming the norm,” said David Ross, Kotahi's Chief Executive.
“An ongoing freight partnership with Maersk will provide New Zealand’s international trade with resilience and agility to navigate these issues into the future.”
The magnitude of this agreement is large, even by global standards, with an estimated NZD 160 billion value of primary export products given greater certainty and capability around delivery to market.
The long-term agreement will provide Kotahi and Maersk shareholders and exporters with a backbone shipping network for reliable services to key export locations.
“During the peak of the Covid-19 disruption, Maersk was the standout carrier in bringing additional vessel capacity and containers to New Zealand, which grew the capacity pie for the whole export market,” stated Ross.
“This is an exciting partnership with Maersk. It enabled New Zealand exporters to stay competitive on the world stage, and we look forward to the next 10 years.”
A decade ago, Kotahi and Maersk embarked on a groundbreaking collaboration to provide greater reliability to New Zealand ocean logistics, focusing on the needs of New Zealand exporters.
Ten years later, the partnership has shipped 1.8 million TEUs, or 23 million tonnes, of New Zealand cargo to market, the majority of which are primary industry exports, including dairy, meat, seafood, horticulture, and forestry, through some challenging conditions.
“We are proud to continue our partnership with Kotahi, reaffirming our commitment to supporting New Zealand's international trade and ensuring the resilience of its supply chains,” said Vincent Clerc, CEO of A.P. Moller-Maersk
“Over the past decade, our collaboration has been instrumental in providing reliable and efficient ocean logistics solutions for New Zealand exporters, and we anticipate sustaining this momentum and further advancing our shared objectives in the years ahead.”
With Maersk’s carrier network, Kotahi managed Fonterra’s record export shipments without using more expensive, non-containerised freight options. The collaborative partnership also helped many export customers get products into markets when no other options were available.
Having recently inaugurated a state-of-the-art cold-store facility in Ruakura, Maersk has been dedicated to furthering support by investing in local infrastructure and fostering collaboration with customers in the country.
Through its continued partnership with Kotahi, Maersk demonstrates its long-term commitment. The collaboration is expected to bring New Zealand's supply chain to the next level through integrated logistics solutions, technology-enabled logistics, and sustainability.
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