Why would you take printing projects Offshore?

At face value the invoice costs from Offshore printing companies are less compared to New Zealand based printing companies but what is the Actual cost to the consumer and the NZ Economy;

However some points to remain aware of:

• Unexpected surge in global consumer demand amidst COVID-19 has led to increased and peaked demand for shipping services and equipment, beyond available capacity, across both vessels and port infrastructure. This has led to congestion at ports globally, delays in shipping, cancelled sailings and escalating sea freight rates.
• Port congestion is an international and domestic issue, with most large-scale trans-shipment ports (i.e. Singapore and Tianjin (China) and Tanjung Pelepas (Malaysia)) and both US coasts experiencing delays. Global demand for containers remains high, with a global imbalance of containers impacting the traditional flow of containers around the globe.
• Exporters are still encouraged to provide forecasted volumes 6-8 weeks in advance, work closely with their freight forwarders to secure bookings and get clear communication around possible supply chain disruptions. (Courtesy of Export NZ)

Concern over - Censorship of Titles by Chinese Printers

It seems innocent enough: a map of the US on the inside cover of a young adult novel. The kind that teenagers would use to trace a fictional character's journey.

But a China-based printer told Kiwi publisher that there would be a one-month production delay while the map was vetted by Chinese

When you factor in more paper costs, the price goes up again.”

It is not the first time New Zealand authors have struggled to get past Chinese sensors.

Last year Brian Falkland’s book Cassie Clark: Outlaw had to change printers after publisher OneTree ​House was told the authorities would have to vet a simplified map of the United States.

Consider - Should the New Zealand printing industry be able to grow again , prices would come down and it would be competitive. There were fewer printers in New Zealand than there used to be, and they were relatively small. The more copies you print of a book the cheaper the price of the book gets.

Current Shipping Climate

• Singapore, China, Korea and Thailand are all suffering from significant congestion with delays of 7-14 days.
• Shipping schedules disrupted between Europe and Asia adding more stress to container shortages. This is in part due to the Suez Canal blockage in March when one of the largest container ships in the world, the Ever Given vessel carrying over 20,000 TEUs, was grounded for six days.
• The Australia route is still congested with overbooking forcing rolled bookings, however capacity does appear to be increasing with additional services providing more space and schedules becoming more regular. Sea freight price increases seem to be slowing on some trade routes but overall they will remain high, with prices being categorized as "extreme".
• These are set to continue at the current extreme rates for the remainder of 2021 and industry experts suggest record highs are expected for another two years.
• We understand that general rate increases (GRI) and peak season surcharges are proposed by some freight forwarders/shipping lines in June 2021 for both less than container loads (LCL) and full container loads (FCL).Spot rates for containers and ships have stabilised but remain at record highs. High demand and limited availability are expected to impact the global flow of goods in the coming months.

• The new vessels and equipment ordered by shipping lines are not likely to be available until 2023. The hope is this will increase supply of shipping space and hopefully balance freight rates. (Courtesy of NZ Maritime News May 21’)

Conclusion 

If we were to take all of this into account, then the collateral cost to importers may be dearer than it appears.

Added to this the drive in a COVID environment is to support local and if we are able to increase all-round competitiveness then there is a strong case to support local printing businesses.

Food for thought......