Page 6 - Seafarers---_Pension_Fund_Annual_Report_2020_s

Annual Report of the Board

Seafarers’ Pension Fund 2020 Annual Report

Development of investment assets According to the shipowners barometer 2020 (‘Varustamobarometri
2020’), which focuses on freight traffic, the trend outlook for maritime
Investment income transport markets collapsed during 2020 because of the coronavirus
Return on capital employed, % situation. The balance figure dropped down to -76, or the same level as
during the financial crisis, but the expectation for the next 12 months is
2020 2019 2018 2017 2016 to be slightly on the positive side (balance figure 11).
6,2 10,7 0,7 8,1 6,7
Average annual return, % According to the barometer, investments in traffic to and from Finland
1 y 5 y 10 y 15 y 20 y will continue to increase moderately. The number of sea-based personnel
6,2 6,4 6,5 5,9 5,7 sailing under the Finnish flag has not changed significantly, but it is
Average real return, % predicted that it will reduce in the future. In contrast, the number of
5 y 10 y those sailing under other flags has slightly increased, and the development
5,7 5,4 is assumed to continue during the next period. The proportional share
of vessels sailing under the Finnish flag in goods traffic between Finland
6 and other countries has been about 1/3 since 2006, when the barometer
survey was conducted for the first time.

Gross tonnage Number Age

Regular merchant fleet, total 1727356 680 50.67
Ro-ro passenger ships 603936 54 33.61
Ro-ro cargo ships 511702 44 32.20
Other dry cargo ships 220509 90 42.42
Tankers 180453 10 41.70
Bulk carrier ships 106356 10 37.00
Special purpose ships 176 52.80
Passenger ships 67421 196 60.28
Other ships 23082 100 55.11
13897

Statistics Finland, 12/2020

Altogether 83% of Finland’s foreign transports are transported by sea. In
terms of goods traffic between Finland and other countries, the proportion
of vessels sailing under the Finnish flag is approximately 34% (2019). The
total volume of transports exceeds 100 million tonnes per year. Maritime
transport is the most environmentally friendly mode of transport, with
emission levels varying between 3–20 g/tkm, depending on the vessel type.
For comparison, the emission levels in Europe are over 20 g/tkm for rail
transport, 60–80 g/tkm for road transport and 400-600 g/tkm for aviation
freight. In addition to cargo vessels, freight is transported by passenger-car
ferries and ropax vessels, and their share of groupage transports is 50–60%.

Thus, for the Finnish national economy, it is vitally important to secure
smooth maritime transports in all circumstances. In 2020, risks related to
the security of supply were emphasised, and the State’s support measures
played a crucial role in terms of, for example, ensuring the transports of
foods and medicines.

The goals for reducing the carbon footprint in shipping are very ambitious.
Deployment of new technologies is necessary in order to achieve the set goals.
Most of the new technologies are still in their development phase and cannot
be utilised yet. To reach the goals, significant new investments are required.
The goals are excellent, but we must remember that shipping is a global and
highly competitive industry, so it is important for us to maintain our edge.
On the other hand, it is also likely that customers’ demands concerning the
environmental-friendliness of shipping will increase.