Compared to pre-pandemic and pre-war levels, cargo volumes have halved, with the lowest point occurring last year. However, since the second quarter of this year, the situation has steadily improved.

Port of Tallinn CEO Valdo Kalm emphasized that this recovery is not a short-term anomaly typical of a small economy like Estonia's. For example, cargo volumes in the third quarter increased by nearly 7 percent compared to the same period last year.

"All cargo categories have seen significant growth, with particularly strong performance in our largest segment, truck freight, followed by containers. Container volumes have risen by over 10 percent," Kalm said.

"This is very positive, indicating growth in exports – specifically in goods being shipped out from Estonia. In the second quarter, we saw signs of improving exports, but by the third quarter, at least at Port of Tallinn, Estonia's exports had grown by 2 percent over the first nine months," Kalm explained.

Maritime cargo is a global business, with goods from Estonian ports destined for 60 countries and originating from around 50 countries.

Trade with Russia and China virtually nonexistent

In 2023, Port of Tallinn handled small quantities of liquefied natural gas (LNG), but now only a modest amount of containers are in transit.

"If we look at Russia, practically no goods are coming to us in 2024. A few containers are moving, but inspecting their contents is an additional task for the Tax and Customs Board. Last year, we still handled LNG, but that, too, is now gone," noted Kalm.

The CEO acknowledged that transit of goods from Central Asian countries, located east and south of Russia, has not materialized – and likely will not. A small amount of timber products, around 5,000 tons, is transported from Kazakhstan, but this is a negligible volume. Additionally, China is no longer among the destination countries for Estonian ports.

"Ten to fifteen years ago, there were hopes of establishing cooperation with Chinese ports, but that never came to fruition. Now, the political situation has shifted dramatically," Kalm said.

Finland biggest user of Estonian ports

"We handle a significant volume of Finnish exports and imports, followed by Sweden. In terms of container transport, Belgium and the Netherlands are also key countries, with regular cargo ship connections to those destinations," said Kalm.

As a result, Estonian ports have become hubs for the transport of goods from regional countries, facilitating a north-south route where goods are transported through Estonia from Scandinavia to southern regions and vice versa.

"We anticipated this shift years ago when the Russians began aggressively building ports in the St. Petersburg area. Russia's invasion of Ukraine only accelerated these processes," Kalm noted.

The servicing of Scandinavian companies is also growing. "Industrial parks near our ports, with available land, are a significant advantage. Scandinavian companies, particularly Swedish ones, are relocating production from the Far East, including China, back to Europe. This is a pivotal moment for us to attract these industrial complexes to our ports. It's a historic and positive opportunity," Kalm emphasized.

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