Wednesday, 22 May 2024 11:07

$160 billion cargo shipment deal

Written by  Sudesh Kissun
Kotahi, New Zealand’s largest containerised freight manager and A.P. Moller – Maersk have signed a second long term freight agreement to December 2034. Kotahi, New Zealand’s largest containerised freight manager and A.P. Moller – Maersk have signed a second long term freight agreement to December 2034.

New Zealand’s major primary industry exporters have secured shipping capability to export $160 billion worth of products over the next 10 years.

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 to December 2034.

Kotahi, founded in 2011 by Fonterra and Silver Fern Farms, and Maersk manage Fonterra’s exports to customers around the world.

Anna Palairet, chief operating officer at Fonterra, welcomes the deal saying it is great news for New Zealand.

“Despite significant pressure on global supply chains over the past few years, Fonterra and many other New Zealand companies, have been able to keep products moving. We’re looking forward to seeing what this next decade of partnership between Kotahi and Maersk brings.”

A decade ago, Kotahi and Maersk embarked on a ground-breaking collaboration with the purpose of providing greater reliability to New Zealand ocean logistics, focusing on New Zealand exporters’ needs. Ten years later the results are in, together the partnership has shipped 1.8 million TEU or 23 million tonnes of New Zealand cargo to market, the majority being primary industry exports including dairy, meat, seafood, horticulture and forestry, through some challenging conditions.

Kotahi chief executive Daivd Ross says global supply chain disruptions, from pandemic, geopolitical and climatic events are becoming the norm.

“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 big, even by global standards, with an estimated NZ$160 billion value of primary export products given greater certainty and capability around delivery to market. The long-term agreement provides our shareholders, and exporters on our platform, 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 choosing to bring additional vessel capacity and containers to New Zealand, which grew the capacity pie for the whole export market. 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.”

Vincent Clerc, chief executive of A.P. Moller-Maersk, says they are proud to continue the partnership with Kotahi, reaffirming commitment to supporting New Zealand's international trade and ensuring the resilience of its supply chains.

“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.”

More like this

Well done Kotahi!

OPINION: Fonterra's decision to join forces with other primary sector exporters and launch a supply chain collaboration, Kotahi, is paying huge dividends.

Its all about ag exports

OPINION: The Public Service in New Zealand between 2017 and 2023 grew rapidly from 48,000 to over 64,000, and this does not include the use of consultants.

Diversifying exports a priority

Agriculture and Trade Minister Damien O'Connor recently addressed the NZ-China Business Summit in Auckland. He spoke about the importance of the Chinese market to NZ exporters but also the need to diversify our export footprint. Here's part of his speech:

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

Boost for hort exports

The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.

National

Winter grazing warning

Every time people from overseas see photographs of cows up to their hocks in mud it's bad for New Zealand.

ANZ defends farm lending rates

The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.

Machinery & Products

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo…

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make…

» Latest Print Issues Online

The Hound

Review SOEs!

OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…

Bank reset

OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter