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Speaker 1: Okay, now here's I won't call it doom and gloom,

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Speaker 1: but it is certainly a concern. Shipping costs are going

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Speaker 1: up again just as we just as we start turning

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Speaker 1: the corner and the fight against inflation, one of those

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Speaker 1: supply costs starts going up again. According to m FAT,

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Speaker 1: global shipping rates have nearly doubled since April. Hootie attacks

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Speaker 1: in the Red Sea are cited as a major problem.

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Speaker 1: Shipping traffic in the Suez Canal is down fifty percent,

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Speaker 1: and there's been what a drought in the Panama Canal

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Speaker 1: as well. Awesome. Joshua tan As, executive director for Export

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Speaker 1: New Zealand and joins me. Now, hello, Joshua, Hey Andrew.

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Speaker 1: Is this bad for our exporters like it was last time? Yeah?

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Speaker 2: Look, I think it's not as bad as last time. Obviously,

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Speaker 2: As you said, shipping rates have doubled nearly the bood

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Speaker 2: since April, and contenta costs are incredibly censive at the moment,

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Speaker 2: you know, and reacting to events around the in real time.

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Speaker 2: But what we've seen is that it's possibly, it's probably

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Speaker 2: unlikely that costs increase to the same level that we

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Speaker 2: saw during the pandemic, but it's not impossible.

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Speaker 1: Is it bad for importers and is it bad for

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Speaker 1: domestic inflation?

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Speaker 2: Certainly? You know, in terms of domestic inflation, importers face

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Speaker 2: the same issues as exporters do when it comes to shipping.

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Speaker 2: You know, it's things like shipping delays, cost at a

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Speaker 2: sorry time, delays at different ports, and also things like

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Speaker 2: in insurance as well, which really drive up those those

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Speaker 2: costs for importance and exporters.

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Speaker 1: Whenever people talk about inflation getting better and better, they say,

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Speaker 1: you know that is as long as there were no

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Speaker 1: external shocks. Would this qualify as an external shock?

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Speaker 2: Absolutely? Look, you know we're impacted by what is happening

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Speaker 2: around the world, so certainly qualify us.

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Speaker 1: So how much longer could the shot go on and

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Speaker 1: or more importantly, could it get worse?

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Speaker 2: Look, it's it's really hard to tell at this point obviously,

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Speaker 2: you know, as I said before, it's impacted by what

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Speaker 2: is happening in a major shipping route, and it really

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Speaker 2: depends on how long those issues can potentially last.

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Speaker 1: For it's amazing how dependent the world is on a

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Speaker 1: couple of canals. We've got the Suez and then between

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Speaker 1: North America and South America. We've got the Panama and

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Speaker 1: the Panama is having problems as well. Are they free

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Speaker 1: of problems right now?

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Speaker 2: Yeah? Look, some finding some good news. So an updated

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Speaker 2: on the Panama Canal is that the drought has ease

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Speaker 2: there and that there are increased traffic was compared to

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Speaker 2: earlier this year. So what we understand is that route

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Speaker 2: is actually back to normal.

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Speaker 1: Are there any other alternatives when these routes, particularly the

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Speaker 1: Sieuez which is in a hotspot, Do we have any

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Speaker 1: other alternatives that we can explore? Could there be other

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Speaker 1: ways of doing this because we are being held hostage

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Speaker 1: by by some hooties.

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Speaker 2: Look, that's a really good question. At the moment, there

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Speaker 2: is a workaround to this issue. Set of ships going

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Speaker 2: through the red seat in the Sewerz Canal. They're instead

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Speaker 2: re routing cargo ships around the Cape of Good Hope

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Speaker 2: in South Africa. Now this ads typiclear around ten to

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Speaker 2: twelve days to poet Singapore in Europe. But look, at

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Speaker 2: least you're getting ships visiting different ports.

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Speaker 1: All right, Josh Chan, I think you for your time today,

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Speaker 1: Export New Zealand executive director. How is this affecting business?

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Speaker 1: I'll tell you Sarah mcormick is the chief executive of

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Speaker 1: a fresh fruit exported by the name of Tomato Exports,

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Speaker 1: and she says getting apples to Europe is very difficult.

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Speaker 1: They have to ship around Africa to get it there.

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Speaker 1: It's a very long transit time for apples and more

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Speaker 1: expensive as well. It's been a bit challenging. We've got

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Speaker 1: Sirma Karapeva from the Meat Industry Association saying that shipping

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Speaker 1: costs we're hitting meat companies in the pocket. It's the

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Speaker 1: geopolitical uncertainty the Panama now the Suez Canal. It's just

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Speaker 1: additional complexity and cost. He says, it's not anything we

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Speaker 1: can control directly, but it's certainly something that the companies

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Speaker 1: are very mindful of. It's taking the bite off the

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Speaker 1: profit line. It's making imports and exports more expensive.

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Speaker 2: For more from Hither Duplessy Allen Drive.

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Speaker 1: Listen live to news Talks at b from four pm weekdays,

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