Among the reasons for the losses are an end to tax-free sales, tough fare competition and fuel price hikes, reports YLE Morning TV. Shipping lines are being forced to look for fresh products and modes of operation.
As a result of Estonia's EU membership, tax-free sales on ferries between Finland and Estonia came to an end. A reduction in Finland's tax on spirits also forced shipping lines to reduce their prices for alcoholic beverages.
Sales of alcohol on board ferries between Finland and its neighbours was a traditional source of income for shipping lines. Now they have are forced to look elsewhere for revenue to remain afloat.
Despite the gloom at sea, Silja Line CEO Antti Pankakoski believes that the summer sailing season will improve matters despite toughening competition.
An estimated 200,000 Finns emigrated to Sweden during the 1960's and 70's. Viking Line CEO Nils-Erik Eklund notes that they and their offspring constitute the backbone of ferry passenger traffic between Finland and Sweden.
