Port of Gothenburg Q3: Containers Up, Ro-Ro Down

By | 2023 Newsletter week 44 | No Comments

The Swedish purchasing power remains low in the wake of economic downturn, resulting in reduced container imports. However, overall container handling in the Port of Gothenburg is increasing as the Swedish export industry continues to thrive, with the forestry sector leading the way.

Intra-European Ro-Ro traffic decreased by 6% during the first three quarters of the year. Like the container segment, import volumes have gone down, but the upturn on the export side has not compensated to the same extent as in the container segment.

Passenger traffic data July 2023 in the ports of Piraeus – Rafina – Lavrio

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More than 2 million passengers moved this July from and to the ports of Piraeus, Rafina and Lavrio, registering a 7.85% increase compared to the same month last year.

Of these, 1.5 million were to and from the port of Piraeus, an increase of 8.55% compared to July 2022. (Cars +7.66%, trucks +5.73%, two-wheelers +7.82%.)

The largest increase in passenger traffic is observed in the Argosaronic Islands as 452,680 passengers moved this July compared to 389,908 in July 2022. This is an increase of 16.1% compared to last year.

A 4.99% increase in passenger traffic is also seen in the port of Rafina (cars +7.47%, two-wheelers +4.53%, trucks -2.9%).

It is noted that the port of Lavrio recorded an increase in passenger traffic by 7.57% and cars by 8.61%.

Tallink Grupp swings back into profit in Q2, 2023

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Tallink Grupp’s Q2 (April- June) financial results are revealing a swing back into profit following the minor loss in Q1.

Q2

  • -0.7% passengers 1,541,081 (1,552,174 in Q2 2022)
  • -22% cargo units 85,359 (109,380 in Q2 2022).
  • The reason for the decline: less vessels, operating 18% less trips across the routes, thus reducing the overall route capacity.
  • +11.5% revenue EUR 229.7 million (EUR 206.0 million in Q2 2022).
  • +138.7% EBITDA EUR 68.5 million (EUR 28.7 million in Q2 2022).
  • The strong effort and positive results in many areas have resulted in a net profit of EUR 33.4 million (net loss of EUR 0.7 million in Q2 2022).

H1

The strong results of Q2 mean that the company has delivered a profitable first half year for the first time since 2015.

  • +14% pax 2,590,858 (2,272,435 in H1 2022).
  • -18.8% cargo units 172,091 (211,318 in H1 2022).
  • In addition to fewer vessels in regular traffic in 2023 due to charters, there is one cargo vessel less operating on the company’s routes as the vessel SEA WIND was sold in spring 2022.
  • +28.4% Revenue EUR 400.9 million (EUR 312.2 million in H1 2022).
  • +439% EBITDA EUR 95.6 million (EUR 17.7 million in H1 2022).
  • Net profit at the end of H1 2023 was EUR 28.0 million (EUR 40.7 million net loss at the end of H1 2022).

Commenting on the results of the first half year of 2023, Tallink Grupp’s CEO Paavo Nõgene said:

“The results of the first half of 2023 are proof that the decisions we have made over the last few years to speed up our recovery following the Covid crisis with vessel charters, were the right ones. The positive impact of the vessel charters is undeniable, especially at this time when the increased cost of living is still putting pressure on people’s travelling choices. Our current strategy to operate our regular routes with the most optimal number of vessels and charter out other vessels, is helping us on our road to recovery.”

“Our focus now is on maintaining profitability into the next two quarters of 2023 while continuing to reduce our debts accumulated over the crisis periods. The vessels we currently have operating on our four core routes are performing well with some room for growth should passenger numbers from further afield than our home markets see some increases in the year or so ahead. The short-term plan is to continue operating with the same business model of the last few years, with a mix of regular traffic and charter contracts, until such time when demand on our current key routes or elsewhere increases and warrants additional capacity.”

Additional Western Cyclades ships approved

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On 24 February, the Coastal Shipping Council of the Hellenic Ministry of Shipping and Island Policy approved the itineraries of two additional ferries on the Piraeus – Western Cyclades route.

Aegean Sea Lines’ request was granted for their ship ANEMOS (ex-ROSELLA), which will be introduced on the Piraeus – Serifos – Sifnos – Milos and Piraeus – Sifnos – Thira – Ios lines.

Photo: Kostas Papadopoulos

Also approved was the reassignment of Seajets’ SUPERSTAR from the Rafina – Andros – Mykonos – Paros line to the Piraeus – Serifos – Sifnos – Ios – Thira line.

Both requests will be in force from 1 April to 31 October 2023.

Photo: Seajets

Hansa Destinations will not perform the service between Nynäshamn and Rostock during 2023

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  • Hansa Destinations (Gotlandsbolaget) has been running the service between Nynäshamn-Visby-Rostock since August 2021. Now, the company informs that they will not be continuing the traffic during 2023.
  • The background to the decision is foremost, the high cost of fuel.
  • The goal has been to offer freight customers, but also passengers, an effective and sustainable solution for transport and travel between the continent and the greater Stockholm area. The move from road to sea represents a major environmental benefit as well as a needed decrease of trucks on roads.
  • “We do not have a sound business case. The low numbers of cargo volumes have also meant that the environmental benefits that have been our goal, have not been achieved”, says Håkan Johansson, CEO at Gotlandsbolaget.
  • The traffic will end after the arrival of ELIANA MARINO will be in Rostock on December 18, 2022, and of DROTTEN in Nynäshamn on January 4 2023. Customers and partners are being contacted.

Pilot project for a roro service between Turkey and Romania

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From January 2023, Turkey will test a roro service to Romania, the president of the Romanian Customs Authority, Bogdan Mihei, told Profit.ro.

The Turkish authorities are interested in supporting the export of some goods such as vegetables and fruits to Romania and the EU, but also some imports on the same route, such as cereals. Transporting loads, including containers, by ferry would be cheaper and would avoid road traffic in Bulgaria, but also in the straits area.

In the past similar projects failed mainly because of delays of the veterinary and food safety checks. Now the port of Constanta will be ready, says Mr Mihei.

It is unknown who is behind the service. In June 2022, DP World announced with a press release that the Romanian government signed an agreement with Dubai’s Ports, Customs and Free Zone Corporation (PCFC) to develop new infrastructure at the Port of Constanta,  to turn it into one of the most important cargo and vehicle hubs on the Black Sea.

UK delays Customs Controls until 2023

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Minister for Brexit Opportunities and Government Efficiency announced that the new controls for EU-UK movements, which were previously due to take effect on the 1st of July 2022, have been delayed until further notice.

The following import border controls which were planned for introduction from July 2022 will now not be introduced:

  • A requirement for further Sanitary and Phytosanitary (SPS) checks on EU imports currently at destination to be moved to Border Control Post (BCP).
  • A requirement for safety and security declarations on EU imports.
  • A requirement for further health certification and SPS checks for EU imports.
  • Prohibitions and restrictions on the import of chilled meats from the EU.