Papermakers Feel the Pinch of Port Strike
Image: YLE
The forest industry said on Thursday that it was already feeling the effects of the harbour strike that began in the morning. It says the stoppage will lead to shutdowns at pulp and paper mills, which lack much storage space.
Paper giant UPM's mill in Rauma was shut down, as it lacks its own storehouse. Forest product company Stora Enso said it expects production to be disrupted at its Kemi mill if the strike drags on.
The strike by stevedores brought cargo traffic at Finnish seaports to a stop at 6 am Thursday. Talks aimed at averting the stoppage continued into the night under the direction of National Conciliator Esa Lonka. Negotiations broke off at half past midnight. The sides have not yet agreed when further negotiations will be held.
Industry Fears Major Losses
Lauri Peltola, press spokesman for the pulp and paper manufacturer Stora Enso, said that the strike would inevitably lead to shutdowns of pulp and paper mills quite soon. He also said that buyers of Finnish paper products could easily move over to its competitors.
“The impact of the strike is irreversible for the reputation of the Finnish forest industry. We have five kilometres of unloaded train carriages in the port of Kotka. Our customers might not need that paper anymore after becoming customers of other companies,” said Peltola on Wednesday.
Industry’s Own Harbours Bring Relief
In addition to the forest industry, the Finnish steel industry is almost completely dependent on maritime transport. However, steel manufacturer Rautaruukki has a harbour of its own, which is unaffected by the strike.
Also outside the strike action are the harbours of Neste Oil in Naantali near Turku and Sköldvik in Porvoo.
In terms of Finland’s entire foreign trade, the strike could lead to serious losses. In export, the loss of business is about 160 million euros a day. On the import side losses total more than 100 million per day.
Grapes and Lettuce to Run out First
Consumers meanwhile may soon find imported foods running short. The impact of the stoppage will be felt soon on grocery store shelves, especially in the supply of imported perishable goods with a short shelf life.
Fresh grapes and iceberg lettuce are expected to be the first to disappear from shop shelves.
YLE