20 Sep 2021

Freight company worried a longer lockdown could mean a decline in revenue

12:08 pm on 20 September 2021

Freight and logistics company Move Logistics has been hit hard by the alert level 4 Auckland lockdown and ongoing supply chain disruptions.

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Photo: AFP

Move executive director Chris Dunphy estimated revenue, during the past five weeks, was down at least 20 percent and warned the situation could get worse if the Auckland lockdown was extended.

He said the decline in economic activity had a particular impact on fuel transport given the fall in business activity.

"If you look at our fuel business for example ... with people not driving so much in Auckland, if at all, then that just means that our clients aren't moving the volumes that they would have otherwise have been moving."

He said the issue was compounded by the global supply chain disruption and the shortage of containers.

"We've got a significant issue of congestion at our major importing ports and a major issue in terms of the inter-relationship between full and empty containers, and our ability to help our exporters get boxes to move goods out of the country."

Despite being an essential service, Dunphy said the company did not meet the threshold for government support.

"Regrettably, the level of downturn that we're experiencing doesn't quite meet the threshold, so we've taken the decision to keep our teams fully employed.

"We are continuing to trade, as if it was normal, although the longer the level 4 stays in Auckland, that position may have to be reviewed."

He said the rest of the country was operating near normal.

"In level 2, things are about normal, but obviously anything going into or out of Auckland is being impacted quite significantly.

"Obviously, the longer it continues the more concerning it becomes, but you know at the moment, in terms of what we're seeing in Auckland with level 4, our primary businesses in terms of fuels and other things are down by a magnitude."