2024: Challenges in the Polish Ferry Market

By 20 January 20252025 Newsletter week 03
January 20, 2025
  • Decline in Freight Transport:
    • The main Świnoujście to Sweden ferry route experienced a 10% drop in freight, handling 9 million tonnes in 2024, according to the Ministry of Infrastructure.
    • Polish shipowners lost almost 20 percentage points of market share on the key route to Ystad due to competition from foreign operators with larger, more modern ferries.
  • Competition Impact:
    • Foreign operators with ferries featuring lane metre capacities over 4,000 outcompete Polish ferries, which average 1,500m.
    • TT Line and Finnlines have contributed to market saturation, challenging Polish operators like Unity Line and Polferries.
  • Delayed Ferry Modernisation:
    • New Polish ferries were planned for 2017 but faced repeated delays.
    • Polferries added the VARSOVIA ferry in 2024, purchased under an emergency procedure from Italy.
    • The government-funded construction of three ferries by Remontowa Shipyard has faced financial difficulties, delaying the completion of the third unit.
  • Financial Struggles:
    • A PLN 1 billion fund (PLN 650 million subsidy + PLN 350 million loan) financed ferry construction but fell short due to increased costs and market downturns.
    • Over PLN 500 million is needed to complete the third ferry.
  • Operational Challenges:
    • Polish shipowners face additional costs due to ETS emission rights, which will reach 100% in 2025 unless vessels use LNG propulsion.
    • Ferries under construction will feature LNG systems, but retrofitting older ferries is cost-prohibitive.
  • Positive User Feedback:
    • Increased competition improved service quality and lowered freight rates, benefiting users despite challenges for operators.
  • Future Outlook:
    • While the demand for ferry transport has dropped, modest growth in Swedish GDP (forecasted at 1.8% in 2025) may lead to increased freight volumes.
    • Industry stakeholders highlight the need for operational cooperation between Unity Line and Polferries to regain market share.

Conclusion:

Polish ferry operators face stiff competition, financial challenges, and declining freight volumes. Despite these hurdles, investments in LNG-powered ferries and potential market recovery could provide opportunities for growth in the coming years.

Source: https://logistyka.rp.pl/morski/art41669741-brakuje-ponad-pol-mld-zl-na-nowe-promy