The pilotage fees charged in coastal waters of Finland will be increased by 8% as of 1 July 2024. The impact of the increase on the pilotage revenue for 2024 is 4% (for a period of 6 months). The increase will be implemented by raising the basic and mileage-based pilotage fees. The fees related to other aspects of the pilotage process, such as the standby, cancellation and order transfer fees, will remain unchanged. Finnpilot’s Board of Directors decided on this fee increase after careful consideration. The decision is based on the need to ensure the availability and flexibility of the pilotage service despite the decline in the volume of piloted traffic.
The outlook for Finland’s foreign trade has weakened. The prediction for the pilotage volume in 2024 was 18,500 in the autumn, while the current predictions place the figure closer to 16,000. The current political strikes have a significant impact on the company’s finances, as the volume of piloted traffic is at a considerably lower level than normal.
In addition to the weakening economic forecasts, the costs of pilotage provision have risen dramatically. The costs reflect the increased fuel consumption resulting from the exceptionally harsh ice conditions of the winter and the transition to renewable fuel. In order to achieve the company’s emissions reduction targets, Finnpilot needs to increase its use of renewable fuel by 5% each year.
The price level of pilotage in the Saimaa Canal and Saimaa waterways will continue to remain at 26% of the pilotage fee charged in coastal waters. Despite the ceased traffic resulting from Russia’s war on Ukraine, the pilotage company’s obligation to maintain pilotage readiness (service) in the Saimaa Canal and Saimaa waterways will continue.
Finnpilot currently has an extensive savings programme that is helping the company to adapt its activities to the reduced demand for pilotage. Savings in transport and personnel costs are key aspects of the programme. Savings in fuel costs were achieved by reducing driving speeds and combining pilot transports. The company’s investment programme has been adjusted to correspond to the current financial situation by postponing non-mandatory investments.
Through the change negotiations, which were conducted in autumn 2023 and concerned the entire personnel, Finnpilot is seeking to achieve savings equivalent to a total of 17.5 person-years during 2024. The cost impact of the savings will be approximately 1.3 million euro. Additional flexibility for resource planning was sought through an increase in personnel mobility. The total number of employees has decreased from 320 at the end of 2022 to 288 persons (31 December 2023).
The new Pilotage Act, which entered into force on 1 September 2023, facilitates a biannual review of pilotage service prices. The new prices can become effective, at the earliest, six months from the previous effective price changes. If the prices need to be revised again during the year, a discussion with customers will begin three months before the planned price increase.
By virtue of the new Pilotage Act that entered into force at the beginning of September 2023, the assessment of pilotage and PEC examinations will be assigned to persons approved by the Finnish Transport and Communications Agency Traficom who have long-term experience sailing as a pilot or with a PEC. The law obligates Finnpilot to offer services related to pilotage and PEC examinations. Finnpilot has trained personnel in all pilotage areas to be able to perform the necessary assessments related to the examination process.
The increase in pilotage fees was decided on by the Board of Directors of Finnpilot Pilotage Ltd. at its meeting on 28 March 2024. The new pilotage fee charts and the prices of the examination-related services have been published on the Pilotage fees page >>.
Kari Kosonen, CEO, kari.kosonen@finnpilot.fi, tel. +358 40 741 4625
Timo Siren, Financial Director, timo.siren@finnpilot.fi, tel. +358 40 145 9848
