The future of New Zealand’s only locally flagged domestic container shipping service is uncertain, with its operator confirming it is consulting on a proposal to cease operations.
Swire Shipping says the MV Moana Chief, which has operated on the Pacifica network for the past seven years, is due to leave New Zealand at the end of July for scheduled dry dock maintenance in Asia because suitable facilities are unavailable in New Zealand.
The company says global vessel shortages and record-high charter rates mean securing a replacement ship during the maintenance period is “not commercially or operationally feasible”, resulting in a pause to the Pacifica service for an estimated three months.
Swire Shipping country manager Jan Hintz said the company was consulting with employees on a proposal to cease operating the Pacifica service but stressed no decision had been made.
The company is “continuing to explore potential interest in the business alongside the consultation process,” Hintz said.
“No decisions have been made, and the purpose of this consultation is to ensure our employees’ feedback is considered carefully and respectfully before we decide whether to proceed with the proposal.”
Hintz said Swire Shipping’s international services linking New Zealand with Asia and the Pacific Islands would continue to operate as normal.
“The Moana Chief has been a reliable part of our Pacifica network for the past seven years,” he said.
“To support our customers during this time, Cubic Transport –– our related New Zealand transport division –– will work closely with Pacifica to help maintain continuity where possible. We are currently working with our partners to develop a structured capacity programme.”
The proposal has drawn criticism from the Maritime Union of New Zealand (MUNZ), which says the loss of the Pacifica service would remove the country’s last New Zealand-flagged domestic container ship.
MUNZ national secretary Carl Findlay described the proposal as a major blow to New Zealand’s maritime capability and supply chain resilience.
“The withdrawal of the Moana Chief is a devastating blow, not just to the skilled Kiwi seafarers who face redundancy, but to our entire island nation,” Findlay said.
“We have allowed our last domestic container link to be broken. Our absolute reliance on foreign-flagged, foreign-crewed vessels means decisions about New Zealand’s supply chain security are now made entirely in overseas boardrooms with zero loyalty to our country.”
Findlay says the development underscores a need for immediate government support, intervention, and a long-term, cohesive strategy for domestic coastal shipping.
“New Zealand is an island nation that relies on sea transport to move freight, yet our ‘blue highway’ has been left to rot. Leaving our coastal lanes open to international operators running flag-of-convenience vessels with sub-standard wages is an act of economic sabotage.
“We need a real plan to back our domestic fleet, protect local jobs, and build maritime resilience before the next major disaster or global shock cuts us off completely.”
The union is calling for changes to the Maritime Transport Act 1994 to give priority to New Zealand-flagged and New Zealand-crewed vessels carrying domestic freight, and has criticised KiwiRail for using foreign-operated shipping services rather than supporting the domestic coastal fleet.
The Moana Chief, a 1700 TEU (20-foot equivalent units) vessel, was first launched in September 2019 to meet rising coastal and international transhipment demand throughout the country and was seen as complementary to New Zealand’s road and rail networks.
Swire Shipping also cited forecasts that New Zealand’s domestic freight task would more than double by 2040, saying greater use of coastal shipping would be needed because road and rail alone would be unable to accommodate the projected growth.
The proposed closure follows the withdrawal of the Takutai Chief from the Pacifica fleet in 2024, after just under two years in service, with Swire Shipping citing the economic downturn, reduced freight volumes and changes to international shipping services.
Associate Transport Minister James Meager says the Government recognises the importance of coastal shipping but says any further support for the sector must be balanced against other priorities.
“The Government recognises the important role [coastal shipping plays] in New Zealand’s freight system, including supporting resilience, reducing pressure on the road network, and providing another option for moving goods around the country,” Meager says.
However, he says any additional support “would need to be considered against other priorities, particularly given the tight fiscal environment”.
Meager says the Government’s approach will be informed by the forthcoming Select Committee Inquiry into Ports and the Maritime Sector, which is expected to report soon.
Responding to calls from the Maritime Union of New Zealand for legislative changes to prioritise New Zealand-flagged and New Zealand-crewed vessels, Meager says coastal shipping is already subject to specific controls.
“In general, coastal cargo is required to be carried by New Zealand ships, with limited exceptions, including where a foreign ship is carrying coastal cargo that is incidental to an international voyage,” he says.
“Any further legislative changes to prioritise New Zealand-flagged or New Zealand-crewed vessels for domestic freight would involve significant legislative and regulatory considerations, including potential impacts on freight costs, supply chains, ports, exporters, importers, and consumers.
“As with wider questions about support for coastal shipping, these issues should be considered carefully and in the context of the Select Committee Inquiry into Ports and the Maritime Sector, rather than in isolation,” Meager says.
In March this year, the Government made the final allocation from its $30 million Coastal Shipping Resilience Fund.
