New Zealand Freight And Logistics Market Size

New Zealand Freight & Logistics Market Analysis

The New Zealand Freight And Logistics Market size in terms of Equal-3.21 is expected to grow from USD 17.71 billion in 2024 to USD 20.75 billion by 2029, at a CAGR of 3.21% during the forecast period (2024-2029).

• Due to the pandemic, most commodity products, such as building supplies, infrastructure, and certain FMCG and clothing apparel businesses, experienced supply chain disruptions in New Zealand. Some consumers are switching to suppliers from New Zealand to support local businesses, and many export businesses relying on the export of agricultural commodities, such as milk products and meat, are expected to play a key role in driving the freight and logistics market. However, several forestry operations around the country have shut down, according to the Forest Industry Contractors Association, which estimates that about 30% of the country's logging activities have halted due to supply chain delays.
• In New Zealand, road freight is the predominant mode of freight transport and accounts for almost 70% of the total domestic freight movement (in terms of ton-km) and over 90% of the freight (in terms of volume/ton). Rail, although a small player in terms of employment and value-added within the wider transport, logistics, and distribution sector, plays a vital role in connecting Auckland, Tauranga, and Hamilton.
• At the height of the COVID-19 epidemic, there was a shortage of containers; however, today, there are too many containers, which is an issue for the world economy. Data reveals that container depots, which are used to store containers after they are unloaded, are now filling up or being at capacity, in addition to declining freight prices, which is primarily due to a decline in global demand and economic slowdown. In its third-quarter results, big shipping company Maersk issued a warning that due to declining demand and eased supply chain congestion, freight rates have peaked and an expected drop in ocean transport profits.
• Both the continued need for capacity from exporters and the robust local demand for goods have been present throughout the previous year. However, because of erratic shipping schedules and congestion at major New Zealand ports, capacity has not kept up. Despite government subsidies keeping capacity at 90% of pre-pandemic levels, air freight capacity is also under pressure due to high demand. Inconsistent shipping for imports and exports has had an impact on the entire domestic supply chain. To keep up with international schedules, lines are offloading products at ports other than their original destination due to shipping delays and congestion.