Maersk decision shows supply chains still at risk

Unions representing ships crews say the withdrawal of a dedicated Maersk shipping service on the New Zealand coast is a step backwards for New Zealand’s supply chain security.

Unions rep­re­sent­ing ships crews say the with­draw­al of a ded­i­cat­ed Maer­sk ship­ping ser­vice on the New Zealand coast is a step back­wards for New Zealand’s sup­ply chain secu­ri­ty.

Maer­sk announced today that it was with­draw­ing its Coastal Con­nect ser­vice after less than a year in oper­a­tion, with the loss of all jobs of New Zealand crews.

The Maer­sk Nan­di and the Maer­sk Nan­sha are the two con­tain­er ships that have been pro­vid­ing a ded­i­cat­ed New Zealand coastal ser­vice to ports in Auck­land, Tau­ran­ga, Nel­son, Lyt­tel­ton and Timaru.

The coastal ser­vice was seen as a break­through in pro­vid­ing reli­able ser­vices to New Zealand ports fol­low­ing mas­sive dis­rup­tion to ship­ping sched­ules fol­low­ing the COVID pan­dem­ic.

Mar­itime Union of New Zealand Nation­al Sec­re­tary Craig Har­ri­son says the sud­den with­draw­al of the Coastal Con­nect ser­vice shows how volatile and inse­cure New Zealand’s sup­ply chain remains.

The can­celled Maer­sk ser­vices will be replaced by new inter­na­tion­al ser­vices that drop some New Zealand ports off their calls and use Aus­tralian ports as hubs.

“This con­tin­u­al mar­ket volatil­i­ty is bad for New Zealand and will have a flow on effect to importers and exporters, and thus the whole econ­o­my.”

Mr Har­ri­son says New Zealand is mak­ing good progress with coastal ship­ping, and although the Maer­sk deci­sion was a set­back, there is still an over­all pos­i­tive tra­jec­to­ry for coastal ship­ping.

“We saw a num­ber of new ships and ser­vices com­ing onto the New Zealand coast in the last year, large­ly due to Gov­ern­ment engag­ing with indus­try and hav­ing a plan which we haven’t had for decades.”

He says there is cur­rent­ly high demand for New Zealand sea­far­ers, and he is hope­ful redun­dant crews would be re-employed in the indus­try.

He says the mar­itime unions will be ask­ing Maer­sk to pro­vide train­ing posi­tions for New Zealand crew aboard the new ser­vices.

“This is a com­pa­ny that has made very large prof­its from New Zealand over decades, and they need to show stronger com­mit­ment and social respon­si­bil­i­ty.”

Mr Har­ri­son says the clear mes­sage is New Zealand is at the bot­tom of the pri­or­i­ty list for glob­al ship­pers.

“If New Zealand does not get its act togeth­er with a nation­al port strat­e­gy, we are going to see hub­bing hap­pen­ing in Aus­tralia, and New Zealand ports fur­ther down the peck­ing order.”

Mr Har­ri­son says one obvi­ous option is to get state owned enter­prise KiwiRail, who oper­ate inter island Cook Strait fer­ries, to diver­si­fy by leas­ing ships to meet the demand for coastal ship­ping.

The three unions all have mem­bers aboard the affect­ed Maer­sk ves­sels – the Mar­itime Union of New Zealand rep­re­sent­ing sea­far­ers, the New Zealand Mer­chant Ser­vice Guild rep­re­sent­ing ship’s mas­ters and offi­cers, and the Avi­a­tion and Marine Engi­neers Asso­ci­a­tion rep­re­sent­ing marine engi­neers.

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