However, an Australian bulk carrier eventually broke that accord, which contributed to the demise of locally-flagged vessels operating on the Tasman and Pacific trades, recounts former New Zealand Shipping Federation manager Paul Nicholas.

“We lost South Pacific Shipping, Tasman Express Line and the Union Company which had been around for over 100 years,” he says. “All were gone by 2000. That was essentially because the international lines are exempt from a lot of the taxes that both Australian and domestic ship operators are subject to.”

Mr Nicholas says a recent study undertaken by the New Zealand Shipping Federation puts that tax burden into perspective.

“For a ship that is flagged overseas and operated by a foreign crew compared to a New Zealand-registered ship that is crewed by New Zealanders, the tax difference equates to NZ$216 ($166) per 20-foot container from Auckland to Lyttelton.”

While there are at least a dozen vessels on the New Zealand register, they are all now domestic carriers in different sectors. The largest coastal cargo operator, Pacifica Shipping’s fleet has halved to two vessels.

However, Mr Nicholas believes the Government’s Sea Change transport strategy will see a resurgence in coastal shipping.

“As is happening already internationally, most countries that have a coastline are supporting and developing their coastal shipping operations. The reason for that is pure and simple - it relieves congestion of trucks on the long-haul and it is far greener.”