Backlogs across supply chain

A transport company has exceeded its first-half expectations despite global supply-chain issues disrupting its efforts to adapt to the Covid-19 environment.

TIL Logistics Group saw an increase in group revenue, earnings and profit for the half-year to December 31, with improved trading for most of its divisions.

Profit in the half was $2.67 million, which was up from a loss of $2.17m in the previous six months. Income increased by three per cent to $181m and expenses declined by about $1m to $171.3m.

Chief executive Alan Pearson, pictured, says the business is on-track to deliver what it has been telling the market.

He adds: “We still have areas for improvement, especially in freight. We’re working on that. We’re not where we want to be but, by the same token, we’re progressing to improve the returns in that business.”

Pressure on coastal shipping and congestion at Upper North Island ports created increased demand for road transport in the second quarter.

Container vessels trying to circumnavigate wait times of up to two weeks at Ports of Auckland docked at Tauranga and Northport instead, meaning transport by road and rail was needed to get imports to the country’s biggest city.

Increased demand for road transport was partially offset by a reduction in demand for warehousing during the period caused by worldwide container availability issues.

Supply-chain issues have caused backlogs of containers in certain markets, meaning they can’t be picked up or dropped off when required. Pearson expects congestion to start returning to normal mid-year.