A collaboration between two of the world's largest shipping companies could drive down sea freight prices. Happag Lloyd and Mask's Gemini Corporation are starting up next month. This co lab, which will cover the ocean freight network on East West trades. It's meant to see shipping prices drop immediately. Why improve stability in the red Sea imports of Walk and Chief executive Roger Gray joins me. Now, good morning to here, Roger, Good morning Andrew. Cheaper prices. That's good.

A collaboration between two of the world's largest shipping companies could drive down sea freight prices. Happag Lloyd and Mask's Gemini Corporation are starting up next month. This co lab, which will cover the ocean freight network on East West trades. It's meant to see shipping prices drop immediately. Why improve stability in the red Sea imports of Walk and Chief executive Roger Gray joins me. Now, good morning to here, Roger, Good morning Andrew. Cheaper prices. That's good.

Yeah, Well, look, I think exporters and importers across New Zealand will be very happy with this initiative from Papak Lord and mrs.

Yeah, Well, look, I think exporters and importers across New Zealand will be very happy with this initiative from Papak Lord and mrs.

It's cheaper because it's called a hub and spoke operation. Can you explain that for me.

It's cheaper because it's called a hub and spoke operation. Can you explain that for me.

Yeah. What they're going to do is they're going to most cargo on bigger ships, more reliably with a better schedule, into big hub ports and then they'll use smaller ships to come down to ports like Auckland and Total.

Yeah. What they're going to do is they're going to most cargo on bigger ships, more reliably with a better schedule, into big hub ports and then they'll use smaller ships to come down to ports like Auckland and Total.

So that means though freight could take longer because there's a couple more movements.

So that means though freight could take longer because there's a couple more movements.

Yeah, that's right, there could be. But what it will be important for both importers and exports will there'll be scheduled reliability. They'll know when their cargo will arrive. And that's been one of the biggest complaints we've had from customers over the last four or five years, is ships not arriving on time, and this is a really good initiative to get better at that.

Yeah, that's right, there could be. But what it will be important for both importers and exports will there'll be scheduled reliability. They'll know when their cargo will arrive. And that's been one of the biggest complaints we've had from customers over the last four or five years, is ships not arriving on time, and this is a really good initiative to get better at that.

So a arrival stability is more important than timiness.

So a arrival stability is more important than timiness.

Yeah. The reason for that is if your Woolworths and you're ordering in food, you want to know when it's going to arrive because you can then manage your inventries to make sure you don't have stocks running out in the stores. So yeah, this reliability is what customers talked to us a lot about.

Yeah. The reason for that is if your Woolworths and you're ordering in food, you want to know when it's going to arrive because you can then manage your inventries to make sure you don't have stocks running out in the stores. So yeah, this reliability is what customers talked to us a lot about.

And how does it improve stability in the Red Sea.

And how does it improve stability in the Red Sea.

Well, there's two things that are happening. One happy Lloyd and Musk will be running these bigger ships with more tonnage, so there'll be guaranteed to be flowing. The other thing is you're probably aware that the Hooti rebels have acknowledged that they're going to stop attacking ships unless they're directly linked to Israel, so that means the ships won't be going around the bottom of Africa to get to Europe. So this should be a really good two things coming together at the same time, should be really good for the industry, all.

Well, there's two things that are happening. One happy Lloyd and Musk will be running these bigger ships with more tonnage, so there'll be guaranteed to be flowing. The other thing is you're probably aware that the Hooti rebels have acknowledged that they're going to stop attacking ships unless they're directly linked to Israel, so that means the ships won't be going around the bottom of Africa to get to Europe. So this should be a really good two things coming together at the same time, should be really good for the industry, all.

Right, And when does it take hold? When does it start impacting?

Right, And when does it take hold? When does it start impacting?

Well, we expect that we'll start to see it within the next few months down here in New Zealand. Whilst the Gemini agreement is not actually flowing directly here, we'll start to see it coming into Australia and the Upper and that should then provide us with the opportunity to see this come in the next few months.

Well, we expect that we'll start to see it within the next few months down here in New Zealand. Whilst the Gemini agreement is not actually flowing directly here, we'll start to see it coming into Australia and the Upper and that should then provide us with the opportunity to see this come in the next few months.

Hey, Roger, thank you so much for getting up early for us. That is Roger Gray, who is the CEO of the Portugalkand for more.

Hey, Roger, thank you so much for getting up early for us. That is Roger Gray, who is the CEO of the Portugalkand for more.

From Early edition with Ryan Bridge. Listen live to News Talks it'd be from five am weekdays, or follow the podcast on iHeartRadio.

From Early edition with Ryan Bridge. Listen live to News Talks it'd be from five am weekdays, or follow the podcast on iHeartRadio.