Transport and logistics company Mainfreight has introduced a vaccination mandate and is preparing for staff being off work as a consequence of the Omicron outbreak.
In a trading update to the New Zealand stock exchange (NZX) on Wednesday managing director Don Braid said its vaccination mandate for all New Zealand staff came into effect on January 17.
In 2021 Mainfreight employed 2627 staff in New Zealand, and 9240 across all countries it operated in.
Braid said preparations continued for New Zealand staff being off work as a consequence of the Omicron variant outbreak.
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Navigating constraints due to Omicron-related workforce disruption remained a priority, he said.
Should it encounter infection issues at specific sites, having multiple branches and warehouses provided alternatives.
LAWRENCE SMITH/Stuff
Mainfreight’s Christmas volumes were the largest on record.
“Contactless delivery with increased safety protocols, and split shifts in our warehouses, are also being applied in preparation for further Covid-19 disruption.”
Mainfreight is valued at $8.5 billion, making it one of the largest companies on the NZX, and its shares, priced at $84.85 per share, are the most valuable on the market.
The trading update said its before tax profit increased 85 per cent to just over $372 million in the 43 weeks to December 31, compared to the same period the previous year.
Braid said the financial results were not a surprise, rather a continuation of increasing freight volumes and trends seen in its first-half results.
“They are also a reflection of the improving financial performance across our Asia, Europe and Americas businesses.”
International shipping and airfreight continued to be impacted by congestion, and with demand far exceeding supply, freight rates remained elevated, he said.
Omicron restrictions had impacted service levels through staff having to take time off work in its Australia, Europe and Americas operations.
It had yet to see any impact in its New Zealand and Asia businesses, except for China’s border restrictions tightening.
It expected elevated freight volumes to continue through the calendar year.
Domestic transport volumes remained at elevated levels and Christmas volumes were the largest on record, he said.
Demand for its warehousing business was at its highest levels with customers wanting to increase their stock holdings, he said.
Additional facilities were providing capacity, and it had new warehousing building projects underway in Hamilton and Auckland, he said.
Air and ocean freight demand remained strong both inbound and outbound.
“Space restrictions continue with most major shipping lines selectively allocating space.”
Its Australia transport branches’ financial performance in December and January was affected by the Omicron outbreak, with Omicron infection and isolation rates causing congestion issues, he said.
Service levels had since improved and volumes were expected to remain strong through to the year-end.
In Europe team numbers had been reduced as Covid-19 infection levels restrict work access, but operations were maintaining satisfactory service levels and financial performance was “pleasing”, he said.
Its financial results for the year to March 31 will be released May 26.
