SWIRE Shipping’s New Zealand subsidiary Pacifica is to withdraw its remaining coastal container ship for mandatory drydocking and indicated it will not return.
The 1,740 TEU Moana Chief currently sails between Auckland, Lyttelton and Marsden Point and has operated solo since running mate Takutai Chief was removed from the coast in late August 2024 after the ending of a NZ$10 million subsidy.
In a statement issued to New Zealand’s Shipping Gazette™ and shared with DCN, Swire Shipping country manager Jan Hintz said the Pacifica service would be paused for approximately three months from the end of July, while Moana Chief is drydocked.
"The Moana Chief has been a reliable part of our Pacifica network for the past seven years and is now due for its scheduled dry dock— an essential maintenance requirement. As suitable facilities are not available in New Zealand, the vessel will travel to Asia, departing in end-July.
"Given current global vessel shortages and record-high charter rates, securing a replacement vessel whilst Moana Chief is in dry dock is not commercially or operationally feasible. During this period, the Pacifica service will be paused for an estimated three months," Mr Hintz 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 program for this time."
With the Maritime Union of New Zealand (MUNZ) immediately raising concerns over "the planned withdrawal of Moana Chief from domestic coastal services represents a catastrophic milestone for the country’s economic resilience", Mr Hinz issued further comments.
"The Pacifica Trade has been operating under increasingly challenging conditions. Reduced market demand in New Zealand, port constraints, and an uneven regulatory landscape have all contributed to sustained pressure on performance.
"We are currently consulting with employees regarding a proposal to cease operating the Pacifica service, however we are continuing to explore potential interest in the business alongside the consultation process.
"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.
"Swire Shipping would like to clarify that its international services connecting New Zealand with Asia and the Pacific Islands will continue to operate as advertised and no changes are planned with regards to these service offerings," Mr Hintz said.
MUNZ national secretary Carl Findlay said the withdrawal decision was a direct consequence of decades of short-sighted transport deregulation and government indifference to to the country’s strategic infrastructure.
"We have allowed our last domestic container link to be broken. Our absolute reliance on foreign-flagged, foreign-crewed vessels means that decisions about New Zealand’s supply chain security are now made entirely in overseas boardrooms with zero loyalty to our country."
Mr Findlay said this development underscores a desperate need for immediate government support, intervention, and a long-term, cohesive strategy for domestic coastal shipping.
"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."
MUNZ is advocating for immediate legislative reforms to amend Section 198 of the Maritime Transport Act 1994, which currently allows international ships to carry domestic cargo as a matter of right. MUNZ also demands a return to rules that prioritize New Zealand-flagged and New Zealand-crewed vessels for domestic port-to-port trade.
MUNZ also criticized State-Owned Enterprise KiwiRail for its complicity in undermining local maritime infrastructure through its freight aggregation models.
"It is a disgrace that KiwiRail, a taxpayer-owned entity, has chosen to outsource domestic freight movement to foreign vessels operated by international lines like CMA CGM and ANL," Mr Findlay said.
"As a State-Owned Enterprise, KiwiRail’s primary obligation should be supporting New Zealand infrastructure, New Zealand workers, and New Zealand capabilities. Instead, they are bypassing local crews and local shipping in favour of foreign operators who pay a fraction of local wages. KiwiRail should be leading the charge to use New Zealand flagged and crewed ships, not helping to dismantle them."
"We won’t rebuild our domestic maritime capability overnight, but we must draw a line in the sand today. Re-establishing a secure, low-emission, locally operated coastal fleet is a matter of basic national security. It is time for the Government to step up, close the loopholes in the Maritime Transport Act, and invest in our own people and our own shores."