Exchange rates favoring Swedish exporters in Japan strengthened Sweden's comparative advantage in the Japanese market. Additionally, the Nordic Timber Institute functions as one of the Japanese Foreign Testing Organizations which allows Swedish mills, as well as other Scandinavian mills, to manufacture products that meet Japanese certification requirements. Sweden's low freight charges to Japan have provided another competitive advantage and have contributed to the United States' shrinking share of the Japanese market. Sweden imports many products from Japan, but instead of sending the ships back empty, the shippers are willing to negotiate freight charges. During 1998 and late 1997, freight charges for a 40 foot container have dropped by half.
Transportation is another area where Sweden has a key advantage in the European market.
Swedish trucks are 24 meters long and can haul 60 tons. An interim solution allows Sweden to continue to use their larger size trucks. This gives the Scandinavian forest industry a significant competitive advantage in the European market. In May 1998, STC announced a major plant investment plan that is geared toward the Japanese market. Annual output will be 270,000 cubic meters on two shifts.