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Finnish ports were forced to close for two weeks because of a strike

Mar 15, 2024|View:9

Finnish ports were forced to close for two weeks at the start of the week because of a strike. The half-month strike threatens to cause problems in international logistics and delivery of goods.

The Finnish Union of Automotive and Transport Workers (AKT) has announced a new strike from 6 am on March 11 to 6 am on March 25.

The Central Organisation of Finnish Trade Unions (SAK) estimates that around 7.000 employees will take part in the strike.

The strike, organised in opposition to plans for Labour market reforms and social security cuts laid out by the government of Prime Minister Petri Orpo (NCP), aims to pressure the government by halting the movement of goods at ports, disrupting freight rail services and complicating operations in process industries.

"The strike will bring freight traffic to a standstill at the port, while passenger traffic will be unaffected," the union said in a statement.

It is reported that the AKT strike involves the loading and unloading operations of the VikingLinie shipping company at the ports of Helsinki and Turku, and all work will stop during the strike.

Employees at NesteCorp. 's petroleum product warehouses located in Hamina, Kemi, Kokola and Tornio will not work shifts during the strike.

In a statement, AKT chairman IsmoKokko apologized for the inconvenience caused by the strike, but stressed the need to take action against the Finnish government's plans to weaken workers' rights for current and future generations. He stressed that the strike was not against the employers involved or the existing collective agreements.

Trade associations such as the Finnish Forest Industry, the Finnish Science and Technology Industry, and the Finnish Chemical Industry strongly criticized the new round of strikes as irresponsible. Shutting down ports for two weeks is such a drastic measure that the companies will no longer be able to recoup the losses that result. The joint statement said the strike posed a serious threat to the Finnish economy and caused irreparable damage.

Finnish Prime Minister Olpo (NCP) said the strike was regrettable but would not solve the problem. He told the news agency through an aide that a lengthy political strike would cause great damage to the national economy and impose huge costs on taxpayers.

Employment Minister Ato Satonen said the government would press ahead with proposals for peaceful talks on the strike despite the latest strike announcement.

In response, shipping company Maersk issued an urgent warning to customers on its website that the two-week political strike would affect operations at all Finnish ports, noting that the strike would also broadly affect Finland's industrial and service sectors.

Maersk will provide customers with further impact of the strike on its branch line operations as soon as possible in the coming days.

All container port operations in Finland are expected to be shut down and ship loading and unloading operations will be interrupted as a result of the strike by most workers representing the steved-handling industry, the notice said. In addition, there will be an impact on air and road logistics during the strike.

DSV also issued a warning on its Finnish website that the strike in Finland would affect operations in March.

Mid-march, the strike will bring Finnish ports to a halt from Monday, March 11. The strike affects road, air and sea transport, with possible delays and disruptions. Even after the strike ends, things will not return to normal because it will take time to clear the congestion.

Container ships will not load or unload at ports during the strike. Similarly, pick-up and delivery of cargo containers and empty containers to ports will be suspended. General cargo terminals operate normally, and sea LCL export goods can be processed through continental European ports.

The knock-on effects of port closures in Finland

Finland has several major ports, including Helsinki, Turku, Hanko and Vasa. These ports are located in the Baltic coastal areas of southern, eastern, western and northern Finland.

These ports are distributed throughout the country and play an important role in Finland's economy and trade, serving different industries and regions, and together form an important part of the Finnish maritime transport network.

For the global shipping industry, therefore, the closure of Finnish ports will undoubtedly have a series of knock-on effects.

First of all, those affected will be those goods that rely on Finnish ports for transshipment or loading and unloading. Due to port closures, these shipments will not be able to be shipped as planned, potentially leading to delays or cancellations of deliveries.

Second, shipping companies may need to re-route to avoid the affected areas, which will increase operating costs and time costs.

It could also trigger workers in other countries and regions to follow suit, further inflaming tensions in the global shipping industry.

All cargo owners and forwarders need to pay close attention to the latest developments of the strike, so as to make corresponding logistics arrangements and countermeasures.