So the label industry is likely to see little repercussions because of the AKT strike.
Here's what we know about the strike so far:
Several industries are affected by the port strike, including:
- Terminal operations
- Tanker and oil products
The AKT had previously warned of an impending strike. When proposals were rejected on February 14, 2023, the strike went into place at 6am the following morning. A complete list of the locations of the companies affected by the strike can be viewed on the AKT official website.
Strikes can deal a huge financial blow to not only businesses, but a country's economy. The Finnish Port Operators Association is already reporting an impact of $300 million per day to Finland's foreign trade.
Then there's the impact on key materials. Countries that rely on exports and trade are unable to acquire what they need, resulting in a domino effect of shortages.
Concern about the port closures affecting companies like UPM and their ability to deliver pulp and paper supplies is definitely warranted. Especially considering the state of the paper market over the last few years.
With supply failing to match increased demand, worry about a repeat of the 2022 UPM strike makes sense.
About 90% of Finland's foreign trade moves through the nation's ports, creating a potentially perilous situation for exporting. 10 major ports are being affected, including several that are crucial for paper industry exports.
For example, Hamina is Finland's biggest export facility serving the forest industry, and Rauma is their largest exporter for paper (also close to UPM Rauma, which has a capacity of producing 665,000 tons of lightweight coated paper per year).
But even with all of this damning information, the dread of Finland's last strike doesn't loom overhead the same way.
So why isn't this strike setting the label industry up for a paper shortage horror movie sequel?