Business environment

The geopolitical situation and sanctions against Russia have increased average shipping costs. While the current economic climate has introduced some uncertainty, it has also fostered innovation and adaptability within the industry.

The shipping industry is undergoing a revolutionary transition from fossil fuels to renewable energy. To ensure that this shift is successful, robust international legislation is essential. Collaboration across the transport industry is crucial, as the associated costs will impact all stakeholders.

Accelerating digitalisation and automation have significantly heightened the importance of cybersecurity in the shipping industry. Although integrated systems onboard vessels improve operational efficiency and safety, they also introduce vulnerabilities to risks such as data breaches and cyberattacks.

The Finnish export industry consists of some special categories, like forest and technology industries and engine manufacturing. This makes Finland sensitive to market fluctuations and a slowdown in the economic growth affects cargo volumes fast.

Market development

Global growth, as well as euro area growth, is forecasted to remain stable but subdued.

During the review period, Germany faced challenges arising from a global decline in industrial demand. Similarly, Sweden experienced sluggish economic growth. However, both economies are projected to recover in 2025. Exports in Finland remained relatively weak in 2024, despite some signs of growth already being visible. Exports are expected to gradually recover starting in 2025 as the economic conditions in export markets improve.

According to the International Monetary Fund (World economic outlook, Oct 2024, Jan 2025), the global GDP growth is forecasted to remain stable at 3.3 per cent in 2025 and 2026. Meanwhile, the euro area’s GDP growth is expected to increase from 0.8 per cent in 2024 to 1.0 per cent in 2025 and 1.4 per cent in 2026. Finland’s GDP growth is also projected to rise from -0.2 per cent in 2024 to 2.0 per cent 2025.

Global inflation is projected to decrease to 4.2 per cent in 2025 and further to 3.5 per cent in 2026. In the euro area, inflation rates are expected to decline from 2.4 per cent in 2024 to 2.0 per cent in 2025. However, in Finland, inflation is forecasted to increase from 1.2 per cent in 2024 to 1.9 per cent in 2025.
According to statistics from Traficom, Finnish seaborne imports carried in containers, lorries and trailer units remained stable at 10.0 million tonnes in 2024, while exports increased by 1 per cent to 15.5 million tonnes. Statistics Finland reports that commercial passenger traffic between Finland and Sweden increased by 2 per cent, while traffic between Finland and Germany remained stable compared to 2023.

Finnlines drives growth with resilience and sustainability

Economic trends in continental Europe, particularly in Germany, as well as in Sweden, have directly impacted Finnlines’ operations. Despite the decline in cargo volumes, Finnlines was able to maintain its market share in the German lorries and trailers market. In Sweden, the market share increased despite the volatile market.

In Finland, Finnlines is a major operator, responsible for maintaining the two most important maritime bridges, Finland–Germany and Finland–Sweden, and providing important connections for export industries. During the past few years Finnlines has also expanded its freight operations to connect Ireland and Continental Europe, and freight and passenger services between Sweden and Poland.

Tighter environmental legislation requires both operational measures in day-to-day operations and investments in new ships. Finnlines operates one of the youngest fleets in the Baltic Sea. For the time being, Finnlines uses onshore power and batteries on ro-pax ships to replace fossil fuels. Batteries and solar energy are used on some of the freight vessels. A new generation of ro-pax ships is being designed for the Finland–Germany route. The focus will be on overall sustainability and clean fuels.

Finnlines, as part of the Grimaldi Group’s global network, ensures connections for freight customers to any destination worldwide.