1 00:00:00,040 --> 00:00:03,640 Speaker 1: Now logistics company main Freight has posted a pretty solid result, 2 00:00:03,640 --> 00:00:06,920 Speaker 1: but it's facing the headwinds of international uncertainty. Annual net 3 00:00:06,960 --> 00:00:09,200 Speaker 1: profit was up nearly a third on the previous year. 4 00:00:09,680 --> 00:00:12,440 Speaker 1: Profits were down in Asia, America and New Zealand. On 5 00:00:12,440 --> 00:00:14,600 Speaker 1: the upside, though, Australia is turning out to be a 6 00:00:14,600 --> 00:00:17,000 Speaker 1: bit of a winner. Don Braid is the general manager 7 00:00:17,000 --> 00:00:18,360 Speaker 1: of main Freighting with us now, Hey. 8 00:00:18,239 --> 00:00:20,040 Speaker 2: Don, Hey, Heather, who are you? 9 00:00:20,160 --> 00:00:22,840 Speaker 1: I'm very well, thank you? What is going on in Australia? 10 00:00:24,360 --> 00:00:26,439 Speaker 2: I was taking us twenty eight years to get there, 11 00:00:26,680 --> 00:00:29,560 Speaker 2: and some of the media and some of the analyst 12 00:00:29,640 --> 00:00:33,040 Speaker 2: community thought that we'd bought a dog back in nineteen 13 00:00:33,120 --> 00:00:35,280 Speaker 2: ninety eight. Well, the dog's barking. It's good. 14 00:00:35,800 --> 00:00:37,879 Speaker 1: It hasn't taken you that long to turn it around, though, 15 00:00:37,920 --> 00:00:38,239 Speaker 1: has it? 16 00:00:39,080 --> 00:00:41,400 Speaker 2: No, not at all, But you know, it's come of 17 00:00:41,440 --> 00:00:45,320 Speaker 2: age and it's now even though New Zealand continues to 18 00:00:45,479 --> 00:00:50,159 Speaker 2: produce a really good profit for us, and at higher margin, 19 00:00:51,080 --> 00:00:54,040 Speaker 2: just as a consequence of the size of the market 20 00:00:54,080 --> 00:00:56,320 Speaker 2: and our presence and the great job that our people 21 00:00:56,360 --> 00:00:59,760 Speaker 2: have done in Australia, where it's now our biggest revenue 22 00:00:59,800 --> 00:01:00,720 Speaker 2: and profit maker. 23 00:01:01,040 --> 00:01:03,319 Speaker 1: Fantastic stuff. Now, have you had a chance to look 24 00:01:03,320 --> 00:01:05,440 Speaker 1: at what this court ruling means for the tariffs? 25 00:01:07,200 --> 00:01:11,480 Speaker 2: Oh, I'm the same as the court ruling about the 26 00:01:11,560 --> 00:01:15,240 Speaker 2: migrants that have been re exported or whatever I suggest, 27 00:01:15,319 --> 00:01:21,520 Speaker 2: and the Harvard rules. Who knows what would happen. The 28 00:01:21,640 --> 00:01:24,320 Speaker 2: key for us is that we focus on business and 29 00:01:24,760 --> 00:01:27,720 Speaker 2: what that means for our customers, and we'll do whatever 30 00:01:27,760 --> 00:01:31,120 Speaker 2: we can to keep the supply chains open for them. 31 00:01:31,280 --> 00:01:33,080 Speaker 1: What do you think, I mean, do your customers just 32 00:01:33,200 --> 00:01:35,400 Speaker 1: act as if like do they just assume the tariffs 33 00:01:35,440 --> 00:01:37,520 Speaker 1: are still on and keep going in the same kind 34 00:01:37,560 --> 00:01:38,119 Speaker 1: of vein? 35 00:01:39,040 --> 00:01:41,720 Speaker 2: Oh? No, interesting. I've just come back from a week 36 00:01:41,760 --> 00:01:46,160 Speaker 2: of sales up there into the US and Canada, and 37 00:01:46,920 --> 00:01:49,920 Speaker 2: you know, there's really a lot of question marks, a 38 00:01:49,960 --> 00:01:55,000 Speaker 2: lot of indecision for both importers, particularly in America, and 39 00:01:55,800 --> 00:01:59,880 Speaker 2: certainly a bit of anger and independence forming in the 40 00:01:59,880 --> 00:02:05,120 Speaker 2: Canadian business market. But I think they'll take advantage, or 41 00:02:05,160 --> 00:02:08,399 Speaker 2: they are taking advantage of the pores and tariffs. We're 42 00:02:08,440 --> 00:02:12,040 Speaker 2: seeing bookings for June, you know, up fifty to eighty 43 00:02:12,080 --> 00:02:16,160 Speaker 2: odd percent, and as a consequence, the shipping rates are 44 00:02:16,160 --> 00:02:20,119 Speaker 2: moving up as well. But they are moving as much 45 00:02:20,160 --> 00:02:23,440 Speaker 2: stock as they possibly can get their hands on, because 46 00:02:23,480 --> 00:02:25,560 Speaker 2: they are uncertain as to what will happen when the 47 00:02:26,280 --> 00:02:28,400 Speaker 2: you know, moratorium on the tariffs is up. 48 00:02:28,919 --> 00:02:30,920 Speaker 1: Okay, so what just trying to fill up those warehouses. 49 00:02:31,000 --> 00:02:31,919 Speaker 1: Well they've got the chance. 50 00:02:32,160 --> 00:02:35,480 Speaker 2: Yeah, well whatever, Well they've got the small tariff in place, 51 00:02:36,440 --> 00:02:39,280 Speaker 2: they're better to bring the product in. But there's a 52 00:02:39,320 --> 00:02:42,040 Speaker 2: lot of indecision as to what will happen post the 53 00:02:42,120 --> 00:02:43,040 Speaker 2: tariff deadline. 54 00:02:43,120 --> 00:02:45,520 Speaker 1: I mean, this could backfire, couldn't it, because they might 55 00:02:45,560 --> 00:02:47,799 Speaker 1: have been they might be moving really fast to try 56 00:02:47,840 --> 00:02:49,760 Speaker 1: to fill the warehouses up at the moment, and then 57 00:02:49,800 --> 00:02:51,920 Speaker 1: all of a sudden the tariffs are off all together. Potentially. 58 00:02:52,800 --> 00:02:55,440 Speaker 2: Yeah, But of course, in when the tariffs came on 59 00:02:55,440 --> 00:02:59,680 Speaker 2: on whatever you call it, Liberation Day April and May 60 00:03:00,160 --> 00:03:03,799 Speaker 2: or a lot of bookings halted. So you know, nothing 61 00:03:04,120 --> 00:03:06,840 Speaker 2: moved during April. Well it's wrong for me to say nothing, 62 00:03:06,880 --> 00:03:10,320 Speaker 2: but reduced tonnage has moved in April and May, and 63 00:03:10,520 --> 00:03:12,680 Speaker 2: they're trying to make up ground during June and July. 64 00:03:12,919 --> 00:03:15,919 Speaker 1: Yeah, don listen, I always appreciate your thoughts on politics 65 00:03:15,960 --> 00:03:20,560 Speaker 1: here in New Zealand. What did you make? Why are 66 00:03:20,600 --> 00:03:21,120 Speaker 1: you laughing? 67 00:03:21,240 --> 00:03:26,200 Speaker 2: Don? Oh, because not much. It was all good. I mean, 68 00:03:26,240 --> 00:03:30,960 Speaker 2: we had a name questions from analysts today as we 69 00:03:31,080 --> 00:03:34,760 Speaker 2: presented our year end, asking if the twenty percent was 70 00:03:34,800 --> 00:03:38,160 Speaker 2: an encouragement to open more cross stocks and warehouses, and 71 00:03:38,400 --> 00:03:40,480 Speaker 2: you know, I think that's a mistake. I mean, let's 72 00:03:40,480 --> 00:03:44,400 Speaker 2: not forget that the government through it took the tax 73 00:03:45,080 --> 00:03:50,600 Speaker 2: the depreciation on buildings off in March of last year, 74 00:03:50,600 --> 00:03:54,120 Speaker 2: which actually cost us a lot of money in terms 75 00:03:54,160 --> 00:03:57,040 Speaker 2: of that net profit. And just for your records, you 76 00:03:57,080 --> 00:04:00,360 Speaker 2: know that was an increase in net profit, but that 77 00:04:00,480 --> 00:04:03,200 Speaker 2: was after abnormals of last year. It's the profit before 78 00:04:03,240 --> 00:04:06,880 Speaker 2: text that really matters. So I don't know that twenty 79 00:04:06,880 --> 00:04:09,200 Speaker 2: percent didn't mean much for us. We'll get on and 80 00:04:09,240 --> 00:04:12,800 Speaker 2: do what we've got to do anyway. Otherwise, I don't know. 81 00:04:12,800 --> 00:04:14,880 Speaker 2: If there wasn't much other highlights in it. 82 00:04:14,800 --> 00:04:15,000 Speaker 1: Was it? 83 00:04:15,040 --> 00:04:15,240 Speaker 2: Yeah? 84 00:04:15,240 --> 00:04:16,880 Speaker 1: I mean, look, I don't want to be I don't 85 00:04:16,880 --> 00:04:18,960 Speaker 1: always want to be bummed out about these guys and 86 00:04:19,360 --> 00:04:21,760 Speaker 1: bumming people out about them. But I can't see a vision. 87 00:04:22,120 --> 00:04:24,120 Speaker 1: Do you see a vision for the economy from this 88 00:04:24,200 --> 00:04:25,040 Speaker 1: coalition government? 89 00:04:25,640 --> 00:04:28,200 Speaker 2: Well they keep talking about that growth vision and that's 90 00:04:28,200 --> 00:04:31,159 Speaker 2: a good thing, and I think that as us in 91 00:04:31,240 --> 00:04:34,000 Speaker 2: business have got to continue to do that. We've I mean, 92 00:04:34,680 --> 00:04:38,240 Speaker 2: you know, talking about an export lead recovery, and maybe 93 00:04:38,279 --> 00:04:40,440 Speaker 2: that is, but it's at the big end of towns, 94 00:04:40,960 --> 00:04:43,000 Speaker 2: in the apples, it's in the dairy, and it's in 95 00:04:43,040 --> 00:04:46,560 Speaker 2: the kiwi fruit. It's not in the normal everyday export 96 00:04:46,600 --> 00:04:50,159 Speaker 2: who's working hard to get their products off shore. We're 97 00:04:50,240 --> 00:04:55,359 Speaker 2: not seeing those people benefiting at all. So there's some 98 00:04:55,480 --> 00:05:00,120 Speaker 2: indecision around that global economy. I just like them to 99 00:05:00,160 --> 00:05:02,559 Speaker 2: get things done. I mean, come back to your comment 100 00:05:02,600 --> 00:05:05,120 Speaker 2: about the road cones earlier, I mean, why don't they 101 00:05:05,160 --> 00:05:07,520 Speaker 2: just get that sorted? What doesn't Sidmey and Brown make 102 00:05:07,560 --> 00:05:11,160 Speaker 2: your decision and get them bad. But that hasn't happened, 103 00:05:11,240 --> 00:05:11,840 Speaker 2: is it? No? 104 00:05:12,000 --> 00:05:14,680 Speaker 1: Exactly, thank you. There's too much announcing and rennouncing and 105 00:05:14,680 --> 00:05:16,560 Speaker 1: re announcing and re announcing, and we're sitting here waiting 106 00:05:16,560 --> 00:05:19,880 Speaker 1: for the thing to happen. Don as always love chatting 107 00:05:19,920 --> 00:05:22,960 Speaker 1: to you. Look after yourself. Don Braid, Main Freight general Manager. 108 00:05:23,560 --> 00:05:26,760 Speaker 1: For more from Hither Duplessy Allen Drive, listen live to 109 00:05:26,839 --> 00:05:29,880 Speaker 1: news talks it'd be from four pm weekdays, or follow 110 00:05:29,920 --> 00:05:31,680 Speaker 1: the podcast on iHeartRadio.