Hon Michael Wood
Minister of Transport
Minister for Workplace Relations and Safety
11 November 2021
John Sanders
[FYI request #17171 email]
Dear John
I refer to your request, which was transferred to my office from Te Manatū Waka Ministry of
Transport (the Ministry) on 14 October 2021, pursuant to the Official Information Act 1982,
seeking information regarding:
“The United States Postal Service (USPS) suspended from 1 Oct 21 most mail services
from the US to New Zealand. Has Minister Wood received any advice or documentation related to the issue above?"
I have not received any documentation related to this issue. I was verbally updated on this
matter based on communication between the Ministry and my office. The Ministry views the
withdrawal of the United States Postal Service as concerning but not unexpected. The key
themes in the advice provided by the Ministry to my office are outlined for you below.
COVID-19 has created supply chain complications that are being felt globally. The
Government established the Maintaining International Air Connectivity (MIAC) scheme to
support aviation connections by providing a regular and predictable schedule of flights. The
United States has the second largest supported number of flights under the MIAC. There are
also a number of indirect routes through which United States mail could come into New
Zealand from – via Australia, for example.
The scheme’s objectives are not to replicate the level of capacity that existed prior to COVID-
19, but rather to maintain a minimum level of connectivity to enable the flow of imports and
exports. So, there is still a level of disruption both in terms of freight volumes and price. The
Ministry has observed increasing freight rates both inside and outside the MIAC scheme.
Additionally, there are significantly reduced carriers flying to the United States following the
onset of COVID-19. It is also possible that demand has increased due to Christmas getting
closer and increased online shopping under lockdown.
This combination of reduced availability and increased cost, and potentially increased
demand, may have influenced USPS’s decision to cease offering services to New Zealand.
The Ministry also noted that 26 other countries have had USPS withdraw, which highlights the
state of global supply chains.
The Ministry expects freight prices to remain heightened both inside and outside the MIAC
scheme for the foreseeable future, until borders open and international aviation starts to return
to New Zealand. It is not clear to the Ministry how long the USPS suspension will be in place.
Tel: +64 4 817 8731 Private Bag 18041, Parliament Buildings, Wellington 6160 Email: [email address] www.beehive.govt.nz
The Ministry alongside other government agencies will continue to monitor the situation and
adjust policies in this area as required.
You have the right under section 28(3) of the Official Information Act to make a complaint
about my response to your request to the Ombudsman, who can be contacted at:
[email address]. Yours sincerely
Hon Michael Wood
Minister of Transport
Tel: +64 4 817 8731 Private Bag 18041, Parliament Buildings, Wellington 6160 Email: [email address] www.beehive.govt.nz
