05 March 2010

Around 80.0% of the Nordic country's foreign trade is transported by sea

According to recent news reports, Prime Minister Matti Vanhanen stated that a massive stevedores strike that shut all of export-reliant Finland's ports on 4th March will further weaken the country's already ailing economy, costing the national economy around €100.0 million per day.

More than 3,000 stevedores walked off the job Thursday morning after last minute labour talks broke down without agreement before a 6:00 am (0400 GMT) deadline given by the transport workers' union, AKT.

The strike is a blow to the eurozone country, whose economy last year saw its biggest annual fall since 1918 as the global downturn dampened demand for key exports like paper and mobile phones.

Paper maker UPM-Kymmene was the first major industry player to report damages, saying it had closed a magazine paper mill in Rauma Thursday as the plant had no storage capacity for products, which would normally be delivered directly to the port for shipping.

Further shut-downs are expected in coming days, and the Confederation for Finnish Industries (EK) said the strike, which follows a one-day work stoppage by Finnish road transport workers, would dent the reputation and competitiveness of Finnish firms permanently.

Around 80.0% of the Nordic country's foreign trade is transported by sea, which says exports account for around 40.0% of Finland's gross domestic product (GDP).

No end-date has been announced for the stevedores strike.

Meanwhile, port cargo handlers are currently in labour talks, and some 500 workers could go on strike at 6:00am on Friday if the parties fail to reach an agreement in collective labour talks before then.