Ropax Short-Sea Shipping and Covid-19 Pandemic: Case of Finland

Abstract

Traveling was constantly growing among European Union (EU) countries before Covid-19 pandemic. In many coastal regions, passenger and freight transportation were tied together with roll-on/roll-off passenger (ropax) ferries. However, since the pandemic started, the passenger side of ropax operations has been under numerous new restrictions, bans and requirements. These have changed rather much during the pandemic era in Finland, creating more distortion and profound volume loss. In 2020, governmental support mechanisms were implemented to avoid significant losses. Thus, freight transportation has sustained. In addition, some restructuring and changes of ropax ferry routes have taken place. Now ropax companies concentrate on shorter routes, and volumes are more devoted to certain seaports. However, the situation did not improve in 2021, and subsidies continued, revenues were barely growing, and profitability was limited. Regression models suggest that Covid-19 resulted in a loss of 14.9 mill. passengers and 1.178 bill. EUR as revenue, where unitized freight volumes were unaffected.

Short Sea Shipping in the Age of Sustainability, Autonomous Navigation and Digitalization

“…In Europe, the development of SSS has been less intense, especially when measured against that of road transportation, probably because the land transport infrastructure across the continent is extensive and competitive. Recent events such as the pandemic and the Russia-Ukraine war have not favoured SSS either, especially in the passenger segment [2]. Finally, the need for near-shore production identified in recent years and, thus, to streamline supply chains may well promote some additional development in SSS in the EU over coming years in detriment of deep-sea shipping (DSS).…”