Earthquake Cost Recovery Charge
UPDATE – October 2018
[NOTE: the Inter-Island Surcharge is no longer being added to freight schedules]
We are pleased to have received correspondence from Mainfreight advising that they have reviewed the disruption surcharge as detailed below and this has resulted in the following changes effective from 1 October 2018:
The intra-island surcharge for all South Island intra-island movements into and out of the Marlborough region will be removed altogether. Due to limited rail services, this region is traditionally dominated by road linehaul requiring unimpeded access to State Highway 1. It is expected that State Highway 1 will be fully operational heading into the summer months.
The inter-island component of the disruption surcharge has been recalculated and accordingly reduced to 9.8%.
The Mainfreight Group carries the majority of Online Distribution’s freight and these changes will be reflected accordingly.
Should you have any queries with the above, please do not hesitate to contact David Potter, Distribution & Logistics Analyst ([email protected], 03 331 6825).
Wednesday 17 November 2016
Due to the substantial impact to road and rail links caused by the North Canterbury earthquake on Monday, transport carriers nationwide continue to re-evaluate their networks and ability to provide services.
Our freight partners Owens (part of the Mainfreight Group) have been working hard to enable freight to continue to transit in a safe, efficient and timely manner under difficult circumstances. With the added challenges around road and rail closures, limited ferry crossings and the additional transit routes required, their direct costs have significantly increased.
As a result, the Mainfreight Group, along with other carriers, have applied a 15% disruption charge to transit routes affected by this “Force Majeure” event to cover some of the additional costs being incurred. Regrettably we in turn have no option other than to pass these costs on directly to our clients. We have been told this will take effect from Monday 21st November 2016.
The disruption charge and what you need to know:
MAINFREIGHT 15% DISRUPTION CHARGE
Mainfreight Group (including Owens) have introduced a disruption surcharge of 15% which will apply to all Inter-Island freight movements, and to all movements between the Marlborough region and mid to lower South Island destinations (eg, freight from North Island to Christchurch will incur a 15% surcharge; freight from Timaru to Blenheim will incur a 15% surcharge, etc). In addition the following will apply:
- Should the Lewis Pass close or imposed restrictions arise for an extended period, Mainfreight may review their position
- Should a consistent ferry option between Wellington and Lyttelton materialise, Mainfreight will look to reduce the fee where appropriate
- On the resumption of normal rail and road services between Picton and Christchurch via State Highway One, this fee will be removed
At this stage this disruption charge will only be applied to transport freight on the above transit routes. Courier consignments are currently exempt, however this may be reviewed when courier companies assess the full impact to their networks.
If you have any queries with the above, please do not hesitate to contact us.