Finland’s shipping market is on track

Ministry of Transport and Communications We publish a report on the Finnish shipping market, explain the current state of the market and assess industry trends up to 2030.

Since this report was prepared before Russia invaded Ukraine, some of its future scenarios and analyzes may have already changed significantly.

The ministry commissioned a report to get an overall impression of the shipping market. The report was produced primarily by the Maritime Business & Policy Research Group, Faculty of Economics, Turku, University of Turku.

Cost-effective transportation service

Especially for Finland, sea shipping is an important and essential part of effective foreign trade.

The shipping market provides cost-effective transportation services to Finnish industry, despite the demand for winter voyages limiting the number of transportation lines and vessels on the market.

The report shows that the shipping market was strong at the turn of 2021 and 2022. Finland’s foreign trade continues virtually without problems throughout the COVID-19 pandemic, even though the pandemic has significantly hindered ferry services for containers and passenger cars. The location of transportation lines in the freight market has, in part, been further improved.

The supply safety at the time of shipment at the end of 2021 was good.

Regulation affects competitiveness

Changes in operating conditions can change the profitability and competitiveness of different types of vessels.

The Finnish register’s competitiveness in passenger car ferries and ro-pax transport was strong, but the bulk cargo market, which is directly exposed to international competition, is expected to deteriorate to some extent over the next few years.

The impact of the recently introduced and future environmental regulations of the International Maritime Organization (IMO) and the European Union may be greater in Finland than in competitors. Finland has the largest share of the world’s international trade on ice-reinforced ro-ro, ro-pax, and passenger ships, and fuel consumption per cargo unit is significantly higher than other types of ships. It’s getting higher. Over 80% of Finland’s trade in goods is at sea. Most of these are fully regulated short-sea shipping within the European Union.

Finding skilled staff in the shipping industry is a challenge and it is important to make this sector more attractive and to improve relevant education and research.

Source: Ministry of Transport and Communications Finland’s shipping market is on track

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