1 00:00:00,160 --> 00:00:02,840 Speaker 1: A collaboration between two of the world's largest shipping companies 2 00:00:02,840 --> 00:00:07,200 Speaker 1: could drive down sea freight prices. Happag Lloyd and Mask's 3 00:00:07,360 --> 00:00:10,879 Speaker 1: Gemini Corporation are starting up next month. This co lab, 4 00:00:11,200 --> 00:00:14,320 Speaker 1: which will cover the ocean freight network on East West trades. 5 00:00:14,600 --> 00:00:18,400 Speaker 1: It's meant to see shipping prices drop immediately. Why improve 6 00:00:18,440 --> 00:00:20,959 Speaker 1: stability in the red Sea imports of Walk and Chief 7 00:00:20,960 --> 00:00:23,800 Speaker 1: executive Roger Gray joins me. Now, good morning to here, Roger, 8 00:00:24,400 --> 00:00:26,360 Speaker 1: Good morning Andrew. Cheaper prices. That's good. 9 00:00:27,280 --> 00:00:30,440 Speaker 2: Yeah, Well, look, I think exporters and importers across New 10 00:00:30,520 --> 00:00:33,680 Speaker 2: Zealand will be very happy with this initiative from Papak 11 00:00:33,720 --> 00:00:34,320 Speaker 2: Lord and mrs. 12 00:00:34,560 --> 00:00:37,120 Speaker 1: It's cheaper because it's called a hub and spoke operation. 13 00:00:37,240 --> 00:00:38,280 Speaker 1: Can you explain that for me. 14 00:00:39,200 --> 00:00:41,040 Speaker 2: Yeah. What they're going to do is they're going to 15 00:00:41,120 --> 00:00:45,120 Speaker 2: most cargo on bigger ships, more reliably with a better schedule, 16 00:00:45,440 --> 00:00:48,479 Speaker 2: into big hub ports and then they'll use smaller ships 17 00:00:48,520 --> 00:00:51,080 Speaker 2: to come down to ports like Auckland and Total. 18 00:00:52,080 --> 00:00:55,440 Speaker 1: So that means though freight could take longer because there's 19 00:00:55,480 --> 00:00:57,240 Speaker 1: a couple more movements. 20 00:00:57,880 --> 00:01:00,279 Speaker 2: Yeah, that's right, there could be. But what it will 21 00:01:00,320 --> 00:01:04,040 Speaker 2: be important for both importers and exports will there'll be 22 00:01:04,080 --> 00:01:07,600 Speaker 2: scheduled reliability. They'll know when their cargo will arrive. And 23 00:01:07,640 --> 00:01:10,360 Speaker 2: that's been one of the biggest complaints we've had from 24 00:01:10,400 --> 00:01:13,919 Speaker 2: customers over the last four or five years, is ships 25 00:01:13,959 --> 00:01:15,800 Speaker 2: not arriving on time, and this is a really good 26 00:01:15,800 --> 00:01:17,280 Speaker 2: initiative to get better at that. 27 00:01:17,600 --> 00:01:24,360 Speaker 1: So a arrival stability is more important than timiness. 28 00:01:25,480 --> 00:01:29,399 Speaker 2: Yeah. The reason for that is if your Woolworths and 29 00:01:29,480 --> 00:01:32,640 Speaker 2: you're ordering in food, you want to know when it's 30 00:01:32,680 --> 00:01:36,120 Speaker 2: going to arrive because you can then manage your inventries 31 00:01:36,120 --> 00:01:38,600 Speaker 2: to make sure you don't have stocks running out in 32 00:01:38,600 --> 00:01:42,160 Speaker 2: the stores. So yeah, this reliability is what customers talked 33 00:01:42,160 --> 00:01:42,960 Speaker 2: to us a lot about. 34 00:01:43,120 --> 00:01:45,720 Speaker 1: And how does it improve stability in the Red Sea. 35 00:01:46,920 --> 00:01:50,640 Speaker 2: Well, there's two things that are happening. One happy Lloyd 36 00:01:50,640 --> 00:01:53,960 Speaker 2: and Musk will be running these bigger ships with more tonnage, 37 00:01:54,000 --> 00:01:57,040 Speaker 2: so there'll be guaranteed to be flowing. The other thing 38 00:01:57,120 --> 00:01:59,840 Speaker 2: is you're probably aware that the Hooti rebels have acknowledged 39 00:01:59,840 --> 00:02:03,000 Speaker 2: that they're going to stop attacking ships unless they're directly 40 00:02:03,080 --> 00:02:05,800 Speaker 2: linked to Israel, so that means the ships won't be 41 00:02:05,840 --> 00:02:09,440 Speaker 2: going around the bottom of Africa to get to Europe. 42 00:02:09,560 --> 00:02:13,200 Speaker 2: So this should be a really good two things coming 43 00:02:13,240 --> 00:02:14,960 Speaker 2: together at the same time, should be really good for 44 00:02:15,000 --> 00:02:15,840 Speaker 2: the industry, all. 45 00:02:15,800 --> 00:02:18,440 Speaker 1: Right, And when does it take hold? When does it 46 00:02:18,440 --> 00:02:19,280 Speaker 1: start impacting? 47 00:02:20,240 --> 00:02:22,280 Speaker 2: Well, we expect that we'll start to see it within 48 00:02:22,320 --> 00:02:24,480 Speaker 2: the next few months down here in New Zealand. Whilst 49 00:02:24,520 --> 00:02:28,600 Speaker 2: the Gemini agreement is not actually flowing directly here, we'll 50 00:02:28,600 --> 00:02:31,160 Speaker 2: start to see it coming into Australia and the Upper 51 00:02:33,120 --> 00:02:35,920 Speaker 2: and that should then provide us with the opportunity to 52 00:02:35,960 --> 00:02:37,720 Speaker 2: see this come in the next few months. 53 00:02:37,800 --> 00:02:39,480 Speaker 1: Hey, Roger, thank you so much for getting up early 54 00:02:39,560 --> 00:02:41,920 Speaker 1: for us. That is Roger Gray, who is the CEO 55 00:02:42,200 --> 00:02:44,560 Speaker 1: of the Portugalkand for more. 56 00:02:44,400 --> 00:02:47,520 Speaker 2: From Early edition with Ryan Bridge. Listen live to News 57 00:02:47,560 --> 00:02:50,560 Speaker 2: Talks it'd be from five am weekdays, or follow the 58 00:02:50,600 --> 00:02:52,079 Speaker 2: podcast on iHeartRadio.