Growth drivers of Finnish-Estonian general cargo transports

Hilmola, Olli‐Pekka

doi:10.11143/41327

Cited by 6 publications

(5 citation statements)

References 22 publications

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“…This indicates that the route via Estonia is increasingly used in the Finnish foreign trade. Similar results are presented by Hilmola ( 2014 ). Because the ports of Helsinki and Tallinn are the main ports in the cargo traffic between Finland and Estonia, the role of the Helsinki-Tallinn route as a sea leg in the hinterland connections of Finland has increased.…”

Section: Traffic Between Helsinki and Tallinnsupporting

confidence: 90%

Recovery of ro-pax ferry traffic from covid-19 under tightening environmental regulations: case Helsinki-Tallinn

Tapaninen

Palu

2022

J. shipp. trd.

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In 2020, the number of passengers on international ro-pax ferries collapsed due to the pandemic caused by the Covid-19 virus and subsequent travel restrictions. At the same time, both the International Maritime Organisation and the European Union are setting stringent regulations on carbon dioxide emissions from ships. In this research, we look at what options companies offering ro-pax services have to recover from the Covid-19 pandemic under-tightening environmental regulations and the future options for the industry. The case under study is ro-pax ferry traffic between Helsinki and Tallinn. It is one of the busiest international passenger ferry connections in the world. The economics of transport are based on large high-speed vessels, the combination of passengers and cargo, and sales onboard. We created four scenarios for the traffic: to continue the same high-speed ro-pax system as in 2019, to reduce the number of vessels, to switch to new types of ships, to slow down the speed of the vessels or to divide traffic into faster and slower ships. The research contributes to discussion of competitive strengths of ro-pax transport.

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Section: Traffic Between Helsinki and Tallinnsupporting

confidence: 90%

Recovery of ro-pax ferry traffic from covid-19 under tightening environmental regulations: case Helsinki-Tallinn

Tapaninen

Palu

2022

J. shipp. trd.

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“…In the regression model, where volume development was explained with time (year) and the Covid-19 era, it was found that time was statistically significant (below 0.001 level) and was alone explaining the volume progress with a high precision rate (R 2 is 97.4%). As Appendix 3 shows, unitized freight volume increases by 206.1 thousand tons every year (time-based co-efficient has slightly increased as in Hilmola's (2014) research it was 175.2 thousand tons per annum). Covid-19 effects were not statistically significant in the model.…”

Section: Ropax Operationsmentioning

confidence: 85%

“…Earlier research in the freight sector has used regression analysis extensively. For example, Hilmola (2014) used it to detect factors explaining unitized/general cargo sea freight growth between Finland and Estonia, whereas van den Bos and Wiegmans (2018) used numerous potential parameters to find reasons for short sea shipping popularity in Europe. Tao and Zhu (2020) built regression models to explain the factors behind the value of time in freight transport.…”

Section: Research Methdology and Environmentmentioning

confidence: 99%

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

Hilmola¹

2022

KMI Int. J. Marit. Aff. Fish.

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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.

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“…Together with these it should be stressed that Estonian market is much smaller than Finnish – recent examination of road transportation contracts concluded that competition in Estonia is not as high as it could or should be (ITF, 2020). In addition, Estonia has a hinterland connection to Europe whereas Finnish logistics is always connected first to sea ports (and Estonia has acted as a popular transit route for Finnish trucks with semi-trailers; Hilmola, 2014). This latter factor could possibly enable lower inventories and therefore less need for warehousing for the Estonian supply chains compared to the Finnish.…”

Section: Discussionmentioning

confidence: 99%

A comparative study of market potential for logistics outsourcing in Estonia and Finland

Solakivi

Kiisler

Hilmola

2021

JGOSS

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Purpose This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The purpose of this paper is to examine whether the two markets have become more similar or whether their logistics costs and logistics markets have developed differently over time. Design/methodology/approach The development of the logistics market is addressed through two survey-based variables. Logistics costs are used to measure the size of the logistics market, whereas logistics outsourcing is analyzed to measure the development phase as well as the market potential for logistics service provision. Findings Estonian logistics outsourcing market was found to be underdeveloped and small compared to the Finnish market. At the same time, the logistics costs of Finnish companies are high and rising, whereas the costs of Estonian firms are declining. Research limitations/implications The results imply that the level of outsourcing might explain the visibility of logistics costs, which should be taken into account when making estimates on logistics costs both at the firm as well as on country level. Social implications Logistics sector is an important source of national competitiveness and employment. This research identifies subareas for the two countries on how to develop competitiveness through the logistics market. Originality/value This research provides a unique method to estimate the size of logistics outsourcing market in these two countries. It also represents as one of the rare works to provide multiyear comparison between countries in logistics costs.

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Growth drivers of Finnish-Estonian general cargo transports

Cited by 6 publications

References 22 publications

Recovery of ro-pax ferry traffic from covid-19 under tightening environmental regulations: case Helsinki-Tallinn

Recovery of ro-pax ferry traffic from covid-19 under tightening environmental regulations: case Helsinki-Tallinn

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

A comparative study of market potential for logistics outsourcing in Estonia and Finland

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