Trans-Tasman trade outlook remains firm according to Australian exporters

03-Nov-2016 3:41 PM

The mutually beneficial trade relationship between Australia and New Zealand continues to provide Australian exporters with opportunities to grow, according to the 2016 DHL Export Barometer.

The latest research shows that 56 per cent of Australian exporters trade with New Zealand – the most popular trading partner in front of North America (51 per cent) and China (42 per cent).

Gary Edstein, Senior Vice President, DHL Express Oceania said: “Australia and New Zealand have traditionally been very significant trading partners and we have seen very solid growth in shipment volume over the past five years, with double digit volume growth.

“The increasing popularity of online shopping has opened up a raft of export opportunities for small and medium-sized businesses to reach new customers internationally. Trans-Tasman trade, in particular, has benefitted from this trend.”

Australian exporter confidence in New Zealand market holds strong
The 2016 DHL Export Barometer shows trade across the Tasman is set to continue on a steady growth path. When Australian exporters were asked about their expectations regarding future export orders to New Zealand, 50 per cent said they predict demand to increase in the next 12 months, mirroring the results of the previous two years.

Confidence in New Zealand as a trading partner continues to dominate overall, with 42 per cent of exporters expecting orders to be the same as 2015 and just 8 per cent expecting a decrease.

Comparatively, Australian exporters are most confident about trade growth from the China and North America markets. Three in five (60 per cent) exporters believe export orders to China will rise over the coming year, with North America following closely at 59 per cent.

Trade agreement a solid foundation for Trans-Tasman exports
More than half (51 per cent) of the 302 Australian exporters surveyed in the 2016 DHL Export Barometer indicated the current trade agreement with New Zealand had a positive impact on exports.

This reflects AusTrade data, which shows that trade between Australia and New Zealand has increased at an annual rate of approximately 8 per cent since the implementation of the current Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA).

Gary Edstein commented: “While exporters see a lot of opportunities in North America and Asia, New Zealand remains one of our most popular trading partners and continues to be an important source of revenue for Australian businesses. The free trade agreement has proven to provide a range of benefits including the smooth transition of goods.

“With comparable markets and business cultures, Australia and New Zealand make ideal export destinations for small and medium-sized businesses that are starting to export internationally.”

DHL Express delivers for online businesses with Trans-Tasman service
Maui Jim is a Sydney-based sunglass business exporting regularly to customers in New Zealand as well as other countries around the world.

David Avello, Operations Director at Maui Jim, said: “Trans-Tasman trade is important to us at Maui Jim and DHL Express has helped us significantly with our business across the Tasman.

“We are seeing increased orders as consumers take advantage of the fast access to goods across the Tasman, offering additional choices and convenience that complements retail sales.”

DHL Express investing in Trans-Tasman trade
The latest Trans-Tasman growth figures reflect DHL Express facility investments in Australia and New Zealand, totaling approximately AU$40 million in the past 18 months.

This includes a NZ$15.3 million Auckland Gateway facility expansion, AU$20 million Melbourne Gateway new facility and AU$1.8 million upgrade to the Canberra service centre that helps to facilitate the increase in shipments across the Tasman.

“DHL Express is committed to fostering growth through continued development of facilities and services,” said Edstein. “We have a dedicated freight plane that travels between Sydney and Auckland enabling overnight delivery, a key service for businesses looking to fulfill orders for their customers.

“In this modern age of internet shopping, speed of delivery has become a key selling point for businesses to grow their customer base and inspire loyalty.”

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Topic: General News

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