Seafood trade at risk from freight famine

By PHILIPPA STEVENSON

Fears are growing that a seafood export industry worth $200 million a year is at risk from the impact of the terrorist attacks on the US.

Cargo space will fall if, as predicted, fewer travellers take to the air.

A drop in tourist numbers has already brought "doom and gloom" to Hawaii, where hotels and restaurants are contemplating laying off thousands of workers, said Bruce Young, chief executive of Moana Pacific Fisheries, a major exporter.

Demand for the company's products had dropped on the islands - one of its key markets - but was also down in US retail outlets.

Moana Pacific was redirecting fish to Australia and its lobster exports to China were still strong.

Mr Young said reports indicated a defiant mood among Americans determined not to change their way of life following the terror attacks.

He predicted a flat market next month and then a return to normal trading.

The industry would cope by matching the catch to market needs.

"It's not like fruit that ripens and has to be picked. Fish will just swim for a couple of more months and we'll catch it later."

Seafood Industry Council spokesman Alastair Macfarlane said sectors such as rock-lobster exporters who relied on air transport would be severely affected if airfreight capacity declined.

"Airfreight capacity arises in the main as a consequence of space available in passenger aircraft," Mr Macfarlane said.

"A collapse in international tourist and business travel will produce a similar collapse in airfreight."

Seafood exporters are the largest, consistent users of airfreight out of New Zealand. Around 15 per cent of our seafood exports, or more than $200 million annually, is airfreighted to market.

Although lobster exporter Ngai Tahu Fisheries says there has been no effect on its business so far, Mr Macfarlane said the September 11 attacks showed the industry's vulnerability.

The subsequent closure of US air space and week-long disruption to air traffic meant more than $100,000 worth of seafood destined for the US was redirected to other markets, including Sydney.

Prices in Sydney for some fish species and seafood products fell as a result, he said.

The industry was also wary of sea transport being disrupted if global tension increased.

"Access to markets, especially the markets of the Asia-Pacific basin, is essential for our business to survive. Our seafood trade relies completely on continued open and secure transport and trade links."

The consequence of threats to one or more of the "pinch-points" for merchant shipping - the Middle East, Southeast Asia or Central America - would directly affect the seafood businesses.

Flower exporters also suffered air transport delays following the attacks but business has returned to normal.

But they, too, are concerned by the prospect of reduced freight capacity from declining tourism or the demise of Air NZ.