The International Transport Workers’ Federation (ITF) has welcomed the Aotearoa New Zealand Government’s decision to uphold domestic cabotage protections and reject an attempt by a foreign-flagged vessel to take over a key coastal shipping route – a move that safeguards local maritime jobs and strengthens the country’s supply chain resilience.
Associate Transport Minister James Meager has declined NovaAlgoma Cement Carriers’ (NACC) bid for an exemption under Section 198 of the Maritime Transport Act. The application would have allowed the Panamanian-flagged, internationally crewed NACC Vega to replace the New Zealand-flagged and crewed MV Buffalo.
A clear message: New Zealand jobs and laws matter
Maritime Union of New Zealand (MUNZ) National Secretary Carl Findlay said the Minister had “made the right decision” and sent a firm message that multinational companies cannot bypass New Zealand’s laws or undermine domestic jobs.
This is a win for local jobs and New Zealand shipping.”
“Holcim must now accept that its plan to replace experienced New Zealand crews with foreign labour has failed. The highly skilled crew of the MV Buffalo is ready, willing, and able to continue serving New Zealand's coastal distribution network,” said Findlay.
ITF: A victory for cabotage and supply chain resilience
The outcome reflects growing global recognition of the importance of strong maritime cabotage laws – supported by recent ITF research showing that national-flag fleets and domestic crewing are essential for national security and supply chain resilience.
ITF Cabotage Task Force Chair Chris Given said the ruling shows how robust cabotage policies deliver positive outcomes for workers and their communities.
“This decision reinforces what our international research makes clear: foreign-flag shipping cannot be treated as a cheap substitute for a national maritime workforce. Holcim’s attempt to sidestep New Zealand’s cabotage framework would have set a dangerous precedent – and the government was right to shut the door.”
A turning point for coastal shipping
MUNZ said that this attempt to flag-out the MV Buffalo has underscored the need to rebuild a dedicated domestic fleet:
“New Zealand requires a robust and permanent policy framework to rebuild its coastal shipping industry. A strong national fleet, crewed by New Zealanders, is essential for keeping communities connected and supply chains functioning – especially during national emergencies like the Christchurch and Kaikōura earthquakes and Cyclone Gabrielle,” said Findlay.
As nations confront geopolitical tensions and fragile supply chains, New Zealand’s decision shows what is possible when governments put seafarers and national interests first.
