The economic activities of Greenlandic society are reflected in Royal Arctic Line’s transported freight volumes and thus also in the company’s revenue.
The first half of 2024 has seen an overall decrease in freight volumes of 1 percent, divided between project cargo, concessionary northbound and southbound cargo, and cargo sent between towns in Greenland.
Project cargo saw a significant decrease of over 30 percent due to the completion of large projects and an economic slowdown. The closure of Nuuk Imeq at the turn of the year has meant that northbound freight volumes increased by 9 percent, mainly due to the transport of beer and soft drinks, and less transport of returnable packaging resulted in a 7 percent decrease for coastal long freight.
Southbound cargo saw a 7 percent decrease, affected by a 20 percent drop in seafood landings for export.
Arctic Umiaq Line
In 2023, the subsidiary Arctic Umiaq Line launched a new strategy aimed at supporting local transportation and future tourism development. It must be noted that the strategy has not lived up to expectations and lower than expected sales have resulted in an expected loss for the full year of 15-20 million SEK. DKK.
A new management team has been appointed to stabilize the company, including a revision of the strategy to ensure a sustainable future for the company.
Outlook for 2024
Decline in economic activity means that an overall decrease in freight volumes of 1 percent is expected.
The company’s management is satisfied with the result of the parent company, but unfortunately, the negative development in the subsidiary Arctic Umiaq Line will mean that the consolidated result for the whole of 2024 will be negative.
The company’s half-year report, including financial key figures, can be found on the company’s website.
For further information contact
CFO Jørgen Aqe Møller, jaqm@ral.gl, tel. +45 34 91 24
