1 00:00:00,080 --> 00:00:02,680 Speaker 1: Good news. Possibly from the old supply chain. We've got 2 00:00:02,680 --> 00:00:05,600 Speaker 1: to tie up between Hapek, Lloyd and Mesk. So what 3 00:00:05,600 --> 00:00:07,840 Speaker 1: does that actually mean for this country? Main Freight Managing 4 00:00:07,880 --> 00:00:10,000 Speaker 1: Director Don Braids with us darn morning. 5 00:00:10,440 --> 00:00:11,120 Speaker 2: Yeah, morning, Mike. 6 00:00:11,880 --> 00:00:13,520 Speaker 1: Have you done well? Have you got a sense of 7 00:00:13,560 --> 00:00:16,160 Speaker 1: what this looks like and how it will unfold given 8 00:00:16,160 --> 00:00:17,840 Speaker 1: I'm assuming this is not the first time we've had 9 00:00:17,840 --> 00:00:18,400 Speaker 1: an alliance. 10 00:00:20,040 --> 00:00:22,720 Speaker 2: No, there's three major alliances in the world. This is 11 00:00:22,840 --> 00:00:27,120 Speaker 2: just a change of the seats. I've decided to go 12 00:00:27,160 --> 00:00:31,440 Speaker 2: along alone. So it puts Musk and haphag Lloyd together 13 00:00:31,520 --> 00:00:34,720 Speaker 2: in a thing they're calling the Gemini Corporation. I'm not 14 00:00:34,800 --> 00:00:38,600 Speaker 2: sure that that means cheaper freight rates. It mostly operates 15 00:00:38,640 --> 00:00:42,800 Speaker 2: on the east to west corridors. Anyway. What might be 16 00:00:43,560 --> 00:00:46,239 Speaker 2: the answer for cheaper freight rates is that if the 17 00:00:46,280 --> 00:00:49,800 Speaker 2: Red Sea reopens, then we get quicker and faster more 18 00:00:49,840 --> 00:00:55,120 Speaker 2: capacity across the world in terms of the service canal opening. 19 00:00:55,240 --> 00:00:57,040 Speaker 1: What do you reckon? The chances of that happening are. 20 00:00:59,480 --> 00:01:02,600 Speaker 2: Low. It's still unstable up there, isn't it? 21 00:01:02,640 --> 00:01:06,240 Speaker 1: And yeah, I mean I was surprised that there isn't 22 00:01:06,280 --> 00:01:08,480 Speaker 1: more interest in it when it started and I was 23 00:01:08,480 --> 00:01:10,839 Speaker 1: watching these people land from helicopters onto ships. I thought, 24 00:01:10,840 --> 00:01:12,800 Speaker 1: surely someone's going to come and do something about this, 25 00:01:12,840 --> 00:01:13,720 Speaker 1: But they don't seem to have. 26 00:01:15,720 --> 00:01:19,039 Speaker 2: No I think they're running protection more than anything else 27 00:01:19,120 --> 00:01:21,920 Speaker 2: for those vessels that are still transitting through there. But 28 00:01:22,040 --> 00:01:25,880 Speaker 2: the shipping lines found in an alternative route, which is longer, 29 00:01:25,920 --> 00:01:29,319 Speaker 2: of course, which reduced capacity, which keep the freight road tie. 30 00:01:29,400 --> 00:01:31,520 Speaker 2: So that's in the interest to the shipping lines, isn't it. 31 00:01:31,520 --> 00:01:33,360 Speaker 1: It is indeed all right, So that's the Red Sea. 32 00:01:33,440 --> 00:01:34,959 Speaker 1: So we're not going to solve that as far as 33 00:01:34,959 --> 00:01:37,440 Speaker 1: this alliance is concerned. What about the business of being 34 00:01:37,480 --> 00:01:40,800 Speaker 1: on time? Does anything improve out of this for us specifically? 35 00:01:40,959 --> 00:01:41,800 Speaker 1: Or we don't know yet. 36 00:01:43,120 --> 00:01:45,120 Speaker 2: I don't think we know. It'll take a long time 37 00:01:45,160 --> 00:01:49,080 Speaker 2: to settle down. I think some of those port rotations 38 00:01:49,120 --> 00:01:51,280 Speaker 2: are still in the old alliance, so it'll be May 39 00:01:51,400 --> 00:01:55,240 Speaker 2: before we'll actually set operating. And it'll run on the 40 00:01:55,280 --> 00:01:58,280 Speaker 2: trans Pacific end into Europe, so it'll be Asia to 41 00:01:58,520 --> 00:02:02,720 Speaker 2: the States and to Europe, not necessarily affecting New Zealand 42 00:02:02,800 --> 00:02:05,440 Speaker 2: or Australia, so you know, we'll be part of a 43 00:02:05,440 --> 00:02:08,800 Speaker 2: transhipment service of that particular service of anything. 44 00:02:08,960 --> 00:02:11,800 Speaker 1: Okay, I was reading somewhere this morning that there's a 45 00:02:11,840 --> 00:02:15,880 Speaker 1: target of ninety percent on time. Currently it's fifty five percent. 46 00:02:15,960 --> 00:02:18,480 Speaker 1: Is that true? In other words, it's about half of 47 00:02:18,520 --> 00:02:20,079 Speaker 1: it turns up on time, half it doesn't. 48 00:02:20,880 --> 00:02:23,079 Speaker 2: Yeah, and we thought Kee we Rail were bad, right, 49 00:02:24,120 --> 00:02:27,680 Speaker 2: that's exactly right. And at fifty five percent, that's poor. 50 00:02:28,120 --> 00:02:30,720 Speaker 2: And I think that rather than the shipping line, that 51 00:02:30,840 --> 00:02:34,320 Speaker 2: comes down to congestion at ports and a lot of 52 00:02:34,360 --> 00:02:37,320 Speaker 2: congestion in Singapore. We've still got a lot of congestion 53 00:02:37,480 --> 00:02:41,760 Speaker 2: right now with Chinese New Year and the Trump tariff 54 00:02:41,919 --> 00:02:44,680 Speaker 2: tonnage that's been moving, So you've got a lot of 55 00:02:44,680 --> 00:02:47,320 Speaker 2: congestion in Chinese ports right now and that's what slows 56 00:02:47,320 --> 00:02:48,399 Speaker 2: those transit times down. 57 00:02:48,480 --> 00:02:50,839 Speaker 1: Good insight, Don appreciated as always. Don brad Main, Freight 58 00:02:50,880 --> 00:02:51,600 Speaker 1: Managing Director. 59 00:02:52,080 --> 00:02:54,959 Speaker 2: For more from the Mic Asking Breakfast, listen live to 60 00:02:55,080 --> 00:02:58,160 Speaker 2: news talks that'd be from six am weekdays, or follow 61 00:02:58,200 --> 00:02:59,760 Speaker 2: the podcast on iHeartRadio.