Delivery services are expecting another surge in demand at level 3

Monday, 20 April 2020

Customers frustrated with delivery delays can expect demand to surge as the country exits lockdown and moves to Covid-19 alert level 3. 

At level 4, only items deemed essential were allowed to be shipped. The Government defined essential items as food, medicine, healthcare, energy, fuel, waste-removal, internet and financial support.

However, there have been plenty of reports of questionable items falling into the category. 

Some essential suppliers have taken to social media to express their anger about delays, saying they have paid overnight fees for parcels that have taken days or even weeks to arrive at their destination.

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Finance Minister Grant Robertson has said that at level 3, the focus for businesses would move away from 'essential' economic activity to what was 'safe', prompting public concerns about further delays to parcels.

New Zealand Post chief operating officer Mark Stewart, in a statement to Stuff, said he anticipates another surge in demand when the country transitions to level 3.

The group has managed 'large fluctuations in volumes of parcels and mail over th last several weeks', he said. 

'While overall parcel volumes have been down in level 4, we did see a strong upward surge in the number of parcels sent last week as more businesses became able to provide essential goods under level 4. 

'We anticipate there will be another strong surge when the country transitions to level 3, whenever that may be.'

While NZ Post was attempting to ease the burden by running extra shifts, accessing extra vehicles, and converging mail facilities, 'this is an unprecedented situation for all of us', Stewart said.

'We ask Kiwis to please be patient, as new physical distancing rules in place in our operations, combined with international delays, may mean there are occasions were delivery may take slightly longer than usual.'

Phill Ireland, of Kāpiti technology company The IT Crowd, said essential items such as laptops, computer parts, eftpos machines were costing him a 'premium' to send via NZ Posts' Courier Post service, but were regularly going missing or taking days or even weeks to get to their destination.

'I've been charged overnight rates for things that take a week to arrive, and when I complain, they're not willing to budge on the rates.'

It was costing him money and in one case, a client contact, he said. 

'They've really dropped the ball.'

Infometrics senior economist Brad Olsen said there was a risk businesses technically allowed to ship items at level 3would be hamstrung by lack of delivery capacity. 

'There's going to be real pressure there. By our estimate, the post and courier sector employs 13,000 people around the country. That's not a huge number when you spread it around the country.'

NZ Post wasn't able to confirm current staffing numbers. 

On Monday afternoon, Prime Minister Jacinda Ardern said the level 4 lockdown would continue for one more week, with it coming to an end at 11.59pm on Monday, April 27. The country would remain at level 3 for at least two weeks, before the Cabinet reviewed the data and made further decisions on May 11.

The lockdown extension would cost two more business days but would be worth the long-term health and economic returns, and meant the country was less likely to cycle between levels, she said. 

This week, businesses would be allowed to get ready to open, such as employers re-entering premises to receive stock if necessary, she said.

But they were advised to stick to social distancing and bubbles.