New Zealand Confirms Support for Coastal Shipping Rules

New Zealand’s government has reaffirmed its cabotage regulations, which require that domestic coastal shipping be carried out by vessels registered in the country and staffed by New Zealand nationals. The decision has been welcomed by both the Maritime Union of New Zealand (MUN) and the International Transport Workers’ Federation (ITF).

The situation originated when Holcim, a supplier of cement and related products, sought an exemption from the cabotage requirements. Holcim had been operating the cement carrier Buffalo since 2016 but opted to sell the vessel due to high operating expenses, declining efficiency, and an upcoming $4.6 million repair bill.

The Buffalo was eventually sold to Switzerland-based NovaAlgoma, and Holcim arranged for the company to continue its coastal service using the smaller NACC Vega. However, because the NACC Vega is registered in Panama and crewed by foreign nationals, the vessel does not meet New Zealand’s cabotage standards. As a result, Holcim requested a waiver to allow the ship to operate domestically.

Cabotage laws govern the movement of goods between ports within the same country, requiring that ships performing these routes be both flagged and crewed locally.

New Zealand’s Associate Minister of Transport chose to uphold the existing rules, emphasizing that waivers are intended only for specific, one-off voyages rather than ongoing operations.

Union groups, including MUN and the ITF, expressed strong approval of the decision, noting that allowing the exemption would have threatened local employment and set an unfavorable precedent for the future.