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New Zealand Coastal Shipping Faces Disruption as Pacifica Shipping Withdraws Vessel

by Daisy D.
07/29/2024
in Supply Chain

Pacifica Shipping, a division of Swire Shipping (NZ) Ltd, has announced its decision to withdraw the MV Takutai Chief from New Zealand’s coastal freight service. The company, a key player in New Zealand’s coastal shipping sector and a member of the New Zealand Shipping Federation Inc., operates two New Zealand-flagged container ships: the MV Moana Chief and MV Takutai Chief. These vessels have been instrumental in inter-regional cargo movements, complementing road and rail networks.

The Maritime Union of New Zealand has expressed concerns about the impact of this decision. The union attributes the withdrawal of the MV Takutai Chief to a recent downturn in trade, which has also led to the loss of 12 jobs. The union argues that the removal of a New Zealand-operated coastal freighter could undermine the viability and resilience of the country’s supply chain.

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Carl Findlay, National Secretary of the Maritime Union of New Zealand, acknowledged the reasons for the withdrawal, including current economic conditions and reduced feeder volumes from international lines. However, he emphasized that the loss of the vessel represents a significant setback for New Zealand’s maritime industry and workforce, affecting the resilience and future security of the supply chain.

Findlay pointed to broader issues within the New Zealand maritime sector, such as instability from strategic policy challenges, reliance on foreign shipping, and disruptions caused by the COVID-19 pandemic. He also raised concerns about a potential exodus of skilled seafarers to Australia, an aging workforce, and uncertainties surrounding the future of Interislander ferries. Findlay has called for a comprehensive strategy to develop a sustainable, locally-operated coastal shipping capacity to safeguard New Zealand’s interests in a volatile global market.

The MV Takutai Chief, which began service in 2022, was instrumental in providing a 3.5-day frequency for coastal shipping in the region. The remaining vessels, including the MV Moana Chief, serve ports in Auckland, Lyttelton, Nelson, Timaru, Marsden Point, and Tauranga.

Find the latest updates in supply chain logistics news at The Supply Chain Report. Visit ADAMftd.com for free international trade tools.

#NewZealandShipping #CoastalShipping #MaritimeIndustry #SupplyChainDisruption #SupplyChainNews

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