Since midnight on May 13th, workers in the Faroe Islands have been on strike following unsuccessful wage negotiations between four labor unions and the Faroese Employers Organization. Eimskip’s subsidiary, Faroe Ship, which operates in the Faroe Islands, has been affected by the strike as port operations, warehousing, cold storage, and trucking activities at Faroe Ship have stopped or are now with very limited activities, as approximately half of the Faroe Ship workforce is currently on a strike. Eimskip’s sailing schedule includes four vessel calls in Thorshavn every week, but due to the current situation the Company has temporarily ceased this service, as it is unable to load or discharge vessels at the port of Thorshavn. The strike has not yet had a material financial impact on Eimskip. However, if this situation is prolonged, Eimskip’s earnings might be negatively affected. Eimskip and Faroe Ship hope that the negotiating parties can reach an agreement as soon as possible for the sake of all stakeholders.
