Finnpilot Pilotage Ltd wants to ensure the availability and flexibility of its pilotage services, even in times of financial difficulty. The company has responded to the decline in number of pilotages with a savings programme that focuses on achieving savings in personnel and transport costs. Finnpilot emphasises the importance of providing the advance information required by the Pilotage Act in order to optimise the efficiency of the pilotage service. The pilotage fees will be increased by 3.5% as of 1 January 2025 along the coastline and in Saimaa.
The increase in pilotage fees 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. The price level in the Saimaa region for the coming year will remain at 26% of the pilotage fee charged in coastal waters. Despite the decline in traffic as a result of Russia’s war on Ukraine, the pilotage company remains committed to its obligation to provide service in the Saimaa region.
The development of Finland’s international import and export volumes has significantly affected vessel traffic and the number of pilotage assignments. The economic situation in foreign trade remains weak despite a recent slight increase, and according to Etla’s forecast, international demand will not be sufficient enough yet to turn exports to a growth track this year. Investments are also expected to decline further and stock levels are high. The decline in production is expected to plateau during the autumn, however, and the economic cycles are expected to improve slightly during 2025.
The number of pilotage assignments decreased by approximately 6% between January–September 2024 as compared to the previous year. The decrease impacted all pilotage areas. The number of ships making stops in Finnish ports also dropped in comparison to 2023. In part, the fall is due to a port strike early in the year, which had a significant impact on freight transport. The share of piloted traffic remained the same, at 33.2% (on 6/2024) of all port visits in Finland.
The final number of pilotage assignments in 2024 is forecast to be approximately 16,700, as compared to 17,396 pilotage assignments in 2023. This figure is expected to rise to about 17,000 during 2025. Saimaa’s freight traffic continues to be at a standstill as a result of Russia’s attack on Ukraine, and there is no expectation that it would pick up in 2025.
The company aims to reduce its total emissions by 50% by 2030 (based on the reference year 2021). Reaching this target will require an approximate 5% annual increase in the use of more expensive, renewable fuel. The costs are will also be affected by the training of personnel in accordance with the new Pilotage Act and the increase in the number of retirements in the coming years. Additionally, cost impacts of collective bargaining agreements, increases in employer fees, contractual increases and core inflation have also been taken into consideration in the level of the pilotage fees.
Finnpilot responded to the decline in pilotage volumes in 2024 with a savings programme that focuses on savings in personnel and transport costs. Improving the quality and timeliness of advance information from clients in accordance with the terms of service plays a significant role in achieving the savings. The pilotage company emphasises the continuing importance of providing advance information on time.
The total number of employees has decreased from 288 at the end of 2023 to 278 persons (on 27 September 2024). The company’s investment programme has been adjusted to correspond to the current financial situation by postponing non-mandatory investments. The achieved cost savings have contributed to the improvement of the company’s finances despite the decrease in traffic volumes. A cautiously positive operating profit is anticipated for 2024.
The pricing of pilotage services is reviewed twice a year in accordance with the Pilotage Act. 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.
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 operating as a pilot or with a PEC. The Pilotage Act obligates Finnpilot to offer services related to pilotage and PEC examinations. Finnpilot offers examination assessment services in all of its piloting areas. The fees for these services are determined by the costs incurred from the provision of the service in question in a manner that also ensures a reasonable profit. You can read about the more detailed content of the examination services and order instructions on Finnpilot’s website >>
The new pilotage fee charts and the prices of the examination services have been published on the Pilotage fees page >>.
The level of the pilotage fees was decided by the Board of Directors of Finnpilot Pilotage Ltd. at its meeting on 30 September 2024.
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
