Threat of industrial action causes Maersk to withdraw Auckland service
December 6, 2011
Maersk Line has withdrawn its Southern Star container service from Auckland, due to industrial unrest at the New Zealand port.
Industrial action closed Auckland’s two container terminals for four days until they reopened yesterday.
Maersk New Zealand Marketing Manager Dave Gulik told reporters the industrial action “played a part” in the decision.
The loss of Maersk’s Southern Star service will cost the Auckland port authority NZ$20 million (US$15.5m) of revenue a year.
Maersk is Ports of Auckland’s biggest customer. It will lose 52 ship visits and more than 82,000 containers from the Southern Star service, and up to a total of 240,000 containers a year, its CEO, Tony Gibson, said.
Maersk said other factors also played a part in the decision, including pricing and the availability of berths.
“The security of their supply chain is of primary importance to our customers, so anything affecting that, or likely to affect that, will come into the equation when we are deciding schedules,” said Gulik.
The union and the port have been at loggerheads over employment contracts, resulting in a strike and lock-out in the Christmas peak period. The port reportedly postponed yesterday’s mediation talks with the Maritime Union. The strike involved 327 of Auckland port’s 500 employees.
Maersk will switch the Southern Star service to the port of Tauranga this weekend. The Northern Star service will continue to visit Auckland.
The two star services link New Zealand with the Malaysian hubs of Port Klang and Tanjung Pelepas.
Courtesy of IFW
