Maersk, the country's largest export and import carrier and Port Otago's biggest customer, has signalled a series of price increases starting in mid-August, while road user charges in New Zealand are expected to be increased on August 1, pushing road cartage costs up by an estimated 15% per container.
Given the ongoing strength of the New Zealand dollar, further costs to manufacturers, growers and exporters will likely be an unpalatable addition to already diminished profit margins.
Dunedin-based director for international freight company DCB International, Mark Willis, said while it appeared another round of increased transport costs was forthcoming, it was cyclical and the rising charges would create opportunities for other shipping lines to cut rates.
"We often see rate increases, but they don't always stick ... depending on seasons and supply and demand," he said.
With the peak export season - from December to July - now over, Maersk could signal higher rates but other shipping lines could cut rates to attract the all-year round cargoes, he said.
"Ships without cargo don't make money," Mr Willis said.
In New Zealand, Maersk this month pulled out of services to Timaru and last year switched some North Island services to Port of Tauranga from Ports of Auckland, at a time when the latter was locked in stalemated negotiations with striking watersiders.
In May last year, Maersk dropped a weekly service from Port Chalmers to Australia, prompting the loss of about 22,000 TEU's (twenty-foot equivalent container units).
These were not import or export containers, but "trans-shipments" of often empty containers between Maersk vessels.
Two months later, in reflection of competition from smaller lines, French line CMA CGM Group included Port Chalmers in a new service connecting Asia, Fiji and New Zealand.
The service began with seven ships on a weekly roster which were capable of carrying 1800 TEUs each, including two port calls in both the North Island and South Island, and was later joined by OOCL (Orient Overseas Container Line) as a service partner.
Maersk globally has been looking for additional measures to cut capacity, including changing time-charter agreements, laying up vessels and sailing slower after freight rates jumped when the industry added too many ships in anticipation of a trade recovery and high fuel costs caused a price war last year, BusinessDesk reported.
Copenhagen-based Maersk is lifting rates by $US150 per 20-foot container and $US350 per 40-foot container on August 15, by a yet-to-be-specified increase.
The increases affect rates for dry and refrigerated shipments from the United States to all destinations in Oceania, including New Zealand, BusinessDesk has reported.
Maersk's New Zealand managing director, Julian Bevis, said, "It's not the first [rate rise] and I am sure it won't be the last.
We are not satisfying our shareholders."
"We're not making enough money at the moment and therefore there are widespread efforts within the organisation to restore rates - this is part of that," he said.
Mr Willis said for large vessel routes it was the East-West routes, between Asia and the US, "where the money is made for them".
Those East-West rates could have an effect in New Zealand, because it meant less competition here, he said.
Mr Bevis has said that given refrigerated freight rates were at present 25%-30% down on five years ago, the price increase would be more of a "restoration", as Maersk sought to keep all operational costs down.
Maersk, under the glare of exporter criticism, have in the past had to put on extra ship calls to New Zealand during peak season to cater to all exporters during the peak, but this year they were not required.
Mr Willis praised Maersk's shipping management decisions during the peak period, saying that during the past season another shipping line came in and took on some of Fonterra's cargoes, which eased any squeeze on available shipping space.
On the 25%-30% price deterioration on refrigerated containers, Mr Willis said there was an "imbalance" in New Zealand refrigerated cargoes to be considered.
"There's a lot of reefer [refrigerated] going out, but none coming back in. Those containers have to be repositioned back [empty]," Mr Willis said.
Maersk, which has a global market share of about 15%, in February cut 9% of its shipping capacity on its largest trading route, Asia to Europe, in an effort to restore profitability.
