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New Zealand's shipping challenges as global vessels increase in size

New Zealand is currently positioned as an outlier in the global shipping industry, facing challenges with the increasing size of cargo vessels, which many of its ports are unable to accommodate. This situation is attributed to the higher fuel efficiency and reduced environmental impact of larger ships. Alasdair MacIntosh, Zespri shipping manager and representative of the New Zealand Cargo Owners Council, highlighted these concerns at the HortNZ annual conference in Tauranga, noting the country as an expensive location for shipping operations.

MacIntosh pointed out several issues impacting the shipping industry, including ongoing costs, longer travel times, and notably, a decline in productivity post-COVID-19. He cited a significant drop in crane movements across New Zealand ports, with Auckland and Tauranga experiencing notable declines. The anticipation of increased congestion as the economy recovers raises concerns about the country's preparedness to handle future cargo volumes efficiently.

The need for infrastructure development to accommodate larger, more environmentally friendly vessels is pressing. Currently, only a few ports in New Zealand, such as Auckland, Lyttleton, and Tauranga, have the capacity to service these ships. The potential for Australian ports to become a hub for New Zealand's international shipping needs was also discussed, emphasizing the need for a long-term infrastructure policy that transcends political cycles.

Rachel Depree, Zespri's executive officer for sustainability, supported the call for action, stressing the importance of adapting to low-carbon shipping technologies. As global markets and consumers become more climate-conscious, New Zealand's ability to participate in low-emissions supply chains is crucial. The country risks being sidelined in favor of larger trading partners if it fails to invest in necessary port infrastructure and alternative fuel sources.

The collective sentiment underscores the necessity for an all-government approach to coordinate efforts in enhancing port infrastructure, exploring alternative fuels, and expanding domestic fuel supply. This strategic direction is essential for New Zealand to continue offering high-value products globally and supporting its agri-economy.

Source: Farmers Weekly

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