SWEDEN’S maritime culture is rooted in the Viking Age. Swedish Vikings were known as Varangians, and were notable for their eastern trading routes, stretching from the Baltic coast into Eastern Europe and Russia through river systems, and even as far as presentday Türkiye.
By the 19th century Sweden’s maritime industry had transformed, aided by the industrial revolution. It emerged as a shipbuilding, navigation and trade powerhouse, not dissimilar to the current day.
MARKET OVERVIEW
Australia and Sweden have a strong diplomatic relationship, based on mutual co-operation and shared values that strengthen bilateral ties and trade. In 2022, the total value of two-way goods and services between Australia and Sweden was valued at $4.3 billion. Stock of Australian investment was valued at $11.1 billion that year, while Swedish investment in Australia was $12.3 billion.
Australia’s major exports to Sweden include coal, precious metal ores and copper ores. Major imports from Sweden include Telecom and information/ communication services, medicaments, engineering equipment and vehicle parts and goods.
INDUSTRY LANDSCAPE
Sweden’s extensive coastline stimulates a cargo shipping economy, supported by high quality port infrastructure and its strategic location geographically.
The Port of Gothenburg on Sweden’s west coast is not only the country’s largest port, but the largest in all of Scandinavia. Almost 40 million tonnes of freight transit through Port of Gothenburg each year, accounting for close to 30% of Sweden’s foreign trade, with direct routes to the USA, Middle East, India and Asia. In 2023, Gothenburg’s port handled 914,000 TEU, making that year the busiest in its 403-year history.
Some of Sweden’s other major ports include Stockholm, Malmö and Gävle. The Port of Gävle in particular serves primarily as an export hub for the country’s robust forestry products export industry, as Sweden is one of the largest exporters of pulp, paper, and sawn timber internationally. More than 80% of its forestry production is exported, primarily to other European Union nations.
Sweden is also home to a number of significant shipping lines, such as Wallenius Lines, a major player in global roll-on rolloff vehicle shipping; Stena Line, one of the largest ferry operators in the world; and other notable players like Furetank Rederi, Wisby Tankers and Swedish Orient Line.
MARITIME CHALLENGES
Though Sweden’s shipping industry was once one of the most preeminent in the world, it suffered a series of major setbacks in the second half of the 20th century that saw its status and industry decline. These challenges persist today, with some academics asserting the nation is an example of a maritime centre in decline.
Supporting this claim is Sweden’s shipbuilding industry which, though historically prominent, has shrunk significantly since the 1980s. Massive shipbuilders such as Götaverken in Gothenburg have long since ceased operations, while Saab Kockums, though still based in Sweden, has had to diversify in recent decades into military and naval shipbuilding and technology, such as submarines.
A significant factor for this decline was fierce competition from Asian shipbuilders, which siphoned sales away from traditional markets like Sweden.
The relatively high cost of Swedish crews was also a contributing factor to Sweden’s decreased maritime presence, as the industry shifted towards using cheaper labour from countries in Asia and Eastern Europe.
While the door is not fully closed for Sweden’s maritime to return to the status it held in the early 20th century, these are considered major roadblocks that would require solutions.
This article appeared in the July 2024 edition of DCN Magazine
