Editorial:

Winds of change

If published two decades ago, this edition of “Ships of the Year” would probably have included several Swedish and Finnish luxurious car- and passenger ferries – also referred to as “cruise ferries”. Almost every year in the 1980’s at least one new cruise ferry was introduced in the traffic between Finland and Sweden.

This issue certainly includes a cruise ferry, but she was built for the traffic between Estonia and Sweden. It also includes a cruise vessel sailing between Sweden and Åland, but she is a pure passenger vessel, with no car deck. As a matter of fact, these vessels reflect the recent development quite well: The strong expansion of the Estonian ferry traffic and a trend towards different vessels for transport and vessels for short cruises across the Åland Sea.
Passenger- and cargo ferry services form a fundamental part of the European transport infrastructure. One of the most interesting areas in Northern Europe from this point of view is the Baltic Sea. The growing trade with the new market economies on the eastern side of the sea also means great potential for operators of shipping services for years to come.

Usually the most modern and efficient ferry tonnage is employed on routes where there are strong cargo and passenger flows. It would perhaps be logical to assume that a lot of new tonnage is employed on the northern Baltic Sea.
But is that the actual case? When talking about combined ferry transports for passengers, cars and cargo vehicles, the operators trading between Sweden and Finland were trendsetters for several decades. However, not a single ferry has been purpose-built for these routes since the beginning of the 1990’s. Hardly any vessel of the dominating ferry companies on the Åland Sea was older than ten years in the 1980’s. As a matter of fact, most of the ferries on the main routes were less than five years old.

Today, all cruise ferries sailing between Finland and Sweden are more than ten years old, many of them closer to 20 than ten. Occasionally there have been rumours about new ferry projects, but so far no contracts have been signed since the end of the 1980’s. What is the problem?

The situation might be connected with the fact that throughout its existence the ferry traffic between Finland and Sweden has, to a certain degree, been dependent on the high price level of beverages in both countries. Still in the EU age, it seems like it has not gained its independence. Thanks to
Åland’s tax exemption, the tax-free sales still rules the Åland Sea.

Where the tax-free sales used to be a driving force, today it looks like it has turned out to be more of a paralyzing factor. The established ferry operators seem to be afraid to move on with new concepts and ideas. However, sooner or later they have to make investments in new tonnage.
Perhaps it is time to say goodbye to the success story which has lasted for more than 30 years, but which now seems to have come to an end. Instead it is high time to greet new concepts, which would work long into the future and be independent of the need for selling large amounts of beverages on board the vessels.

It is of course a difficult decision to leave a proved concept. However, it is no longer a question of jumping into the great unknown. “EU-harmonised” ferries are operational on many routes in Europe and even on the Southern Baltic. The owners have already adapted to a new era in most of the cases. This process is still ahead for many ferry operators on the northern Baltic Sea.
Now time is running out fast. Since Finland lowered its taxation on alcohol, the narrow margins of the ferry companies have shrunk even more. As long as there are too many ferries in service, the prices on short cruises remain too low to pay their way.

It is inevitable that a separation of transport and pleasure has to take place also on the Åland Sea. Birka Line’s new Birka Paradise is a sign of this. Also, a growing fleet of ro-pax-vessels forebode winds of change on the Åland Sea.

Pär-Henrik Sjöström, Editor