Kotahi, Maersk sign second long-term freight agreement in New Zealand

The partnership has successfully shipped 1.8 million TEU (twenty-foot equivalent units), equivalent to 23 million tonnes, of New Zealand cargo to market over the past decade.

Kotahi, New Zealand’s containerized freight manager, and A.P. Moller – Maersk, a global integrated logistics company, have signed a second long-term freight agreement extending to December 2034.

“The magnitude of this agreement is significant, even by global standards, with an estimated NZ$160 billion (US$97 billion) worth of primary export products benefiting from greater certainty and capability in delivery to market,” says David Ross, CEO of Kotahi.

L-R: Vincent Clerc of Maersk and David Ross of Kotahi

Ross adds, “Global supply chain disruptions caused by pandemics, geopolitical tensions, and climatic events are becoming the norm. An ongoing freight partnership with Maersk will provide New Zealand’s international trade with resilience and agility to navigate these issues in the future. This long-term agreement offers our shareholders and exporters a reliable backbone shipping network for key export locations. During the peak of the Covid-19 disruption, Maersk stood out by bringing additional vessel capacity and containers to New Zealand, expanding capacity for the entire export market.”

A decade ago, Kotahi and Maersk began their collaboration to enhance the reliability of New Zealand ocean logistics, focusing on the needs of New Zealand exporters. Over the past ten years, the partnership has shipped 1.8 million TEU (23 million tonnes) of New Zealand cargo to market, primarily consisting of primary industry exports such as dairy, meat, seafood, horticulture, and forestry, according to a press release from Maersk.

Vincent Clerc, CEO of A.P. Moller-Maersk, adds, “Our collaboration over the past decade has been crucial in providing reliable and efficient ocean logistics solutions for New Zealand exporters. We look forward to sustaining this momentum and further advancing our shared objectives in the coming years.”

With Maersk’s carrier network, Kotahi has managed Fonterra’s record export shipments without resorting to more expensive, non-containerized freight options, says the release.

Anna Palairet, COO of Fonterra, adds, “Despite significant pressure on global supply chains over the past few years, Fonterra and many other New Zealand companies have kept products moving. We look forward to the next decade of partnership between Kotahi and Maersk.”

In February 2024, Maersk made its largest infrastructure investment in New Zealand by opening a state-of-the-art cold-storage facility in Ruakura.