Finnish forestry and transport firms face collapse as fuel costs surge by €100,000 per month

Fuel price spikes driven by the Iran war are threatening the survival of Finnish forestry and transport businesses, with some firms now operating at a loss and facing potential bankruptcy, Yle reports.

Janne Paakkola, owner of a forestry machinery company in Iisalmi employing 40 people, said his monthly fuel costs have risen by €100,000—a jump from 30% to over 40% of his revenue. His 16 machines consume 200,000 litres of fuel monthly, with current prices adding six-figure expenses.

“This situation creates huge uncertainty for the business,” Paakkola said. “We’re forced to operate at a loss.”

Transport firms report similar strain. Sakari Enbuska, CEO of Kuljetusliike Enbuska (30+ employees), said prolonged transport routes and fuel surcharges—adjusted monthly under standard contracts—are pushing costs up by tens of thousands per month. He called for weekly price adjustments to match the crisis.

“We’re driving at significantly lower rates now,” Enbuska said.

97% of Finland’s transport fleet runs on diesel, according to Petri Murto of Suomen Kuljetus ja Logistiikka SKAL. Without relief, he warned, the cost shock could trigger bankruptcies and erode national competitiveness. Sweden has proposed temporary tax cuts on fuel to ease the burden.

Compounding the crisis, an early winter has degraded road conditions, forcing longer detours for timber hauling. Poor infrastructure adds costs, while legal limits on leaving felled trees in forests—meant to prevent pests—shorten the operational window.

“Road maintainers must improve planning, like better gritting and surfacing, to keep routes usable,” Enbuska urged.

Metsä Group’s Jarkko Parpala noted that unusable roads force timber into costly intermediate storage, delaying deliveries until summer. “Investing in road upkeep would save everyone money,” he said.