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German-controlled Baltic ferry group Scandlines has confirmed it will lay off 400 of its 2,400 workers in dire economic conditions.


The company said its business had been hit by the downturn since last summer and 2009 would bring further volume falls. Boss Michael Hassing said the market environment had "dramatically changed" in the past few months. He said the move was the only way to ensure long-term success.

Unions have been outraged by the redundancy plan and called for the regional governments of Mecklenburg-Vorpommern and Schleswig-Holstein to act.

In February, Swedish media reported that 45 jobs would go in Sweden as a result of falling freight traffic.

Scandlines has watched passenger and vehicle numbers drop in 2008 as economic woes hit home in the second half.