Pacifica Shipping, an operating division of Swire Shipping (NZ) Ltd, plans to withdraw one vessel from New Zealand’s coastal freight service.

The company has been one of New Zealand’s leading coastal shipping operators and a member of the New Zealand Shipping Federation Inc. It operates two New Zealand-flagged container ships, the MV Moana Chief and MV Takutai Chief, providing inter-regional cargo movements to complement road and rail networks.

Maritime Union of New Zealand (MUNZ) said that Swire Shipping decided to remove its second New Zealand coastal freighter Takutai Chief from service soon after a downturn in trade.

This leaves New Zealand with only one scheduled coastal container vessel operated by Pacifica – Moana Chief.

“The loss of a New Zealand-operated coastal freighter and 12 jobs due to the economic downturn threatens the viability and resilience of our supply chain,” the union added.

The union’s National Secretary Carl Findlay says the union accepts the reasons given for the decision, including current poor economic conditions and service changes by international lines reducing feeder volumes.

“Nonetheless, this is a major blow to New Zealand shipping and our maritime workforce, and reduces the resilience and future security of our supply chain,” he noted.

Findlay highlighted a broader crisis in New Zealand’s maritime industry, marked by instability from “poor strategic policies”, reliance on overseas shipping, and disruptions during COVID. He warned of a skilled seafarer exodus to Australia, an aging workforce, and uncertainty about the future of Interislander ferries. Findlay called for a clear strategy to build a sustainable, locally-operated coastal shipping capacity to protect New Zealand in a volatile global market.

“The Transport sector in New Zealand is facing a number of serious challenges. Whilst a decision has yet to be made on the future of the MV Takutai Chief, a proposal to withdraw the vessel from service is currently under consultation,”Alistair Skingley, Country Manager – New Zealand, Swire Shipping, said in a statement to WorldCargo News.

“As New Zealand’s leading coastal shipping operator and domestic cargo carrier for nearly 40 years, we remain strong advocates for the role of coastal shipping in building a sustainable and resilient domestic supply chain. We are committed to play a major role in supporting New Zealand’s domestic transport infrastructure and continue to work with the relevant authorities and our partners in New Zealand to develop solutions that cater to the long-term needs of our domestic customers and the feeder requirements of international container operators.”

MV Takutai Chief was launched into service in 2022 enabling Pacifica Shipping to offer 3.5-day frequency and support demand for coastal shipping in the region. The two vessels call at Auckland, Lyttelton, Nelson, Timaru, Mardsen Point and Tauranga.

In 2022, Swire’s Pacifica Shipping was one of the recipients of Government funding support aimed at bolstering coastal shipping services. This initiative, which also included three other operators, was seen as a game-changer for the sector. Additionally, global shipper Maersk introduced a new dedicated New Zealand coastal service, Maersk Coastal Connect, featuring two New Zealand-crewed container ships. This service did not receive a subsidy, and was withdrawn in 2023.

New Zealand does not have cobatage restrictions.

Pacifica Shipping, an operating division of Swire Shipping (NZ) Ltd, plans to withdraw one vessel from New Zealand’s coastal freight service.

The company has been one of New Zealand’s leading coastal shipping operators and a member of the New Zealand Shipping Federation Inc. It operates two New Zealand-flagged container ships, the MV Moana Chief and MV Takutai Chief, providing inter-regional cargo movements to complement road and rail networks.

Maritime Union of New Zealand (MUNZ) said that Swire Shipping decided to remove its second New Zealand coastal freighter Takutai Chief from service soon after a downturn in trade.

This leaves New Zealand with only one scheduled coastal container vessel operated by Pacifica – Moana Chief.

“The loss of a New Zealand-operated coastal freighter and 12 jobs due to the economic downturn threatens the viability and resilience of our supply chain,” the union added.

The union’s National Secretary Carl Findlay says the union accepts the reasons given for the decision, including current poor economic conditions and service changes by international lines reducing feeder volumes.

“Nonetheless, this is a major blow to New Zealand shipping and our maritime workforce, and reduces the resilience and future security of our supply chain,” he noted.

Findlay highlighted a broader crisis in New Zealand’s maritime industry, marked by instability from “poor strategic policies”, reliance on overseas shipping, and disruptions during COVID. He warned of a skilled seafarer exodus to Australia, an aging workforce, and uncertainty about the future of Interislander ferries. Findlay called for a clear strategy to build a sustainable, locally-operated coastal shipping capacity to protect New Zealand in a volatile global market.

“The Transport sector in New Zealand is facing a number of serious challenges. Whilst a decision has yet to be made on the future of the MV Takutai Chief, a proposal to withdraw the vessel from service is currently under consultation,”Alistair Skingley, Country Manager – New Zealand, Swire Shipping, said in a statement to WorldCargo News.

“As New Zealand’s leading coastal shipping operator and domestic cargo carrier for nearly 40 years, we remain strong advocates for the role of coastal shipping in building a sustainable and resilient domestic supply chain. We are committed to play a major role in supporting New Zealand’s domestic transport infrastructure and continue to work with the relevant authorities and our partners in New Zealand to develop solutions that cater to the long-term needs of our domestic customers and the feeder requirements of international container operators.”

MV Takutai Chief was launched into service in 2022 enabling Pacifica Shipping to offer 3.5-day frequency and support demand for coastal shipping in the region. The two vessels call at Auckland, Lyttelton, Nelson, Timaru, Mardsen Point and Tauranga.

In 2022, Swire’s Pacifica Shipping was one of the recipients of Government funding support aimed at bolstering coastal shipping services. This initiative, which also included three other operators, was seen as a game-changer for the sector. Additionally, global shipper Maersk introduced a new dedicated New Zealand coastal service, Maersk Coastal Connect, featuring two New Zealand-crewed container ships. This service did not receive a subsidy, and was withdrawn in 2023.

New Zealand does not have cobatage restrictions.