news a Grimaldi Group company 3/2020 Transporting people into the future Goods crossing the Baltic Sea Maritime bridges to Sweden Efficient. Reliable. Sustainable. EDITORIAL WE HAVE DELIBERATELY CHOSEN THE PATH We survived the oil industrial products and the e-commerce Finnlines is holding a steady OF DIVERSIFICATION, which means that crisis of the 1970s, packages that Finnish citizens require. we carry all types of cargo on versatile ships: from paper to cars, trucks and the 2001 Twin Towers THESE EFFORTS WERE HOWEVER NOT course amid choppy waters trailers. And passengers. We have shock, and the 2008 REWARDED when state subsidies were avoided restricting ourselves to just one financial crisis. We will handed out to the shipping sector in sector, even when this has seemed the survive the pandemic too. recent months. Despite Finnlines being The world has entered a period of turbulence: geopolitical more financially attractive option. Ves- specialised in the most strategic niche of tensions; the pandemic; environmental challenges; market sel diversification increases reliability transportation (goods and passengers), because it works as a type of insurance; numbers have been hit particularly hard, other shipping companies specialised in upheavals. declines in one business sector can be dropping by more than 50% between cruising and duty free shopping, not usu- offset be more sturdy performances in January and September, and by around ally considered as strategic, took all the others. 70% on routes from Finland to Sweden. public subsidies. We would like to ask CONSEQUENCES VARY FROM REGION TO Finnlines has since 1947 played a vital what has been found strategical in those REGION, but we have already seen shocks in role supporting both national exporters and FINNLINES IS PART OF THE GRIMALDI BUT DESPITE DIFFICULTIES, WE HAVE NOT latter passenger leisure businesses, the energy markets; the automotive industry; importers. Finnlines alone transports more GROUP, and this too acts as a backstop; LAID UP VESSELS, unlike some of our especially in times of social distancing. hotels and tourism; as well as the financial than a third of the one million trucks that one part of the Group can seek help competitors. Our services have been This discrimination has the potential sector and global trade. move annually across the main sea-bridges from the mother company, and also other maintained even if this has meant sailing to be doubly harmful. Not only are Finland is by no means shielded from this to Estonia, Sweden and Germany. Moreover, subsidiaries, in times of distress. part-empty. In October, we even gave taxpayers keeping alive services that Emanuele Grimaldi turbulence. Finland is almost an island geo- the Company’s fleet fly the blue-and-white back to cargo clients about EUR 5.3 are currently not required due to excess CEO graphically speaking and therefore requires flag and company management is Finnish, but DIVERSIFICATION GIVES OUR CUSTOMERS million in reduced bunker surcharges, capacity, but taxpayer money is creating a steady flow of cargo to and from Europe almost all supplies and services are sourced A MORE STABLE, DEPENDABLE SERVICE, which is around a tenth of our monthly market distortions that have unfairly carried by ship operators resilient enough to in Finland. but it has come at a cost, namely re- turnover and more than the double of depressed rates for honest players such withstand crises. duced margins. Large, flexible tonnage the money we saved due to lower oil as Finnlines. WE ARE FINLAND’S PREMIER SEAFREIGHT is considerably more expensive than prices. RELIABLE TRANSPORT LINKS IN TURBULENT OPERATOR and also a large transporter of simple tonnage designed for just one This helped stabilizing Finnish trans- READERS CAN HOWEVER REST ASSURED: TIMES ARE MORE VITAL THAN EVER in order to passengers. We survived the oil crisis of the trade. These vessels also require more portation companies’ income state- however bad the turbulence gets, meet demand for food, products and services. 1970s, the 2001 Twin Towers shock, and specialist knowledge to operate. We ments, and helped the national trans- Finnlines will keep serving its native Solid marine carriers should be considered the 2008 financial crisis. We will survive the have at times had to turn down what port system stability in general, together country with the steadfast loyalty that part of Finland’s heritage and seen as strate- pandemic too. would have been lucrative business in with Finnish market competitivity, which the position of national carrier demands gic assets. Other good maritime services for The resilience we enjoy is based not just on order to maintain the right cargo balance. is an asset for the Country. Finland, and of us. instance, such as those specialised in tourism hard work but also on sacrifice. Profits have in Finnish citizens, have benefited from or duty free shopping, are not ‘strategic’ to largest part not be distributed to shareholders DUE TO THE PANDEMIC, FINNLINES HAS this. Finnlines ships continued to bring anywhere near the same extent. but rather re-invested in the Company. > SEEN A DECLINE IN REVENUES. Passenger in the spare parts, the equipment, the Contents Editorial 2 Issue 3/2020 seq. no. 30 Goods crossing the Baltic Sea 4 Editor in Chief: Finnlines Future of shipping Corporate Communications Maritime bridges Find trends shaping the Printed by: K-Print connecting the Nordic countries Published by: Finnlines Plc to Continental Europe 6 industry on page 8 Komentosilta 1, FI 00980 Helsinki www.finnlines.com 8 [email protected] Future of shipping Address changes: Steel cutting for the second hybrid ro-ro 10 www.finnlines.com/finnlines-news Printed in December 2020. Schedules 11–15 Circulation: 12,000 copies 3 Daily morning arrivals in Helsinki and ensure that products reach all important early evening departures from Helsinki customers within the Baltic, the North have established Finnlines’ connection Sea and Bay of Biscay,” says Staffan as the most important maritime bridge for Herlin, Head of Marketing, Sales and truck and trailer traffic in Finnish import Customer Service, Finnlines. and export. Finnlines handles over a third of the million trucks travelling by sea between Finland and Estonia, Finland and Sweden, and Finland and Germany. Finnlines is the leading freight operator on the maritime bridge between Finland and Sweden with its 40% market share. The same goes with Finland and Ger- many – punctual daily morning arrivals in Helsinki and early evening departures from Helsinki have established this con- nection as the most important maritime bridge for truck and trailer traffic in Finn- ish import and export. Cost-efficient transports Finnlines’ frequent transports enable customers to maintain optimal storage management, which results in savings in Sea, and to Sweden. The major forest, time and costs. In temperature regulated chemical, metal, and mechanical indus- transports this is especially vital – logis- tries dominate the Finnish export scene. tics must work perfectly in order for the Finnish import is more versatile but from product to reach its destination in prime a consumer’s point of view the most condition. obvious import goods are groceries and “A functioning logistics chain requires other daily commodities. As a whole, that the wheels keep on turning. On Finnish sea transport volumes are about routes that are vital for security of supply 100 million tons per year.* we offer up to two departures per day The vessels operating in the Baltic – according to the needs of the custom- Sea ensure that the cargo passes and ers,” says Herlin. the flow of supplies continues to run Finnlines’ vessels are designed and smoothly. scheduled to carry cargo. “This is why they are supreme when it comes to Finnlines is vital for cargo transports. For instance, when MS security of supply Finnswan arrives in Kapellskär early in Finnlines plays an essential role in the morning, the trucks are a long way safeguarding the security of supplies out of the port before the rivalling ves- for Finland and its vessels and routes sels even reach it,” Herlin continues. ensure there is enough cargo capacity Profitable companies develop and no disruptions in cargo deliveries. their operations constantly, but this Schedules are planned to serve trade is especially highlighted in uncertain he Baltic Sea is one of the and industry – for instance, the sailing times. Finnlines’ ongoing investments world’s busiest seas, represent- from Travemünde to Finland is at night in the fleet and in sustainable develop- Goods crossing the Baltic Sea ing around 15% of the world’s as it is important that the fresh produce ment ensure that the cost-efficient sea cargo transports. It is estimated arrive quickly in Finnish grocery stores. transports offered by the Company are Tthat there are approximately 300,000 The less visible for consumers, but no also among those with the lowest carbon About 90% of Finland’s foreign trade is shipped by sea. Vessels transport port visits per year to the Baltic Sea less important role Finnlines has in trans- dioxide emissions per every transported ports. There are about 2,000 vessels in porting industrial cargo such as timber, unit. “The new vessels which are cur- our export products out into the world and bring us everything we find the Baltic Sea at any given moment and steel and machine. rently under construction will increase in stores. As one of the biggest sea freight operators on the Baltic Sea, more than half of these vessels are cargo “Our traffic has operated normally the efficiency of our fleet even further,” ships.* throughout this exceptional time. From Herlin recounts. Finnlines ensures that there is enough sea freight capacity and cargo The Finnish foreign trade is nearly the Finland’s security of supply’s point completely dependent on sea connec- of view, we offer vital sea transports be- * Finnish Shipowners’ Association, 2020; transports are functioning.