Legal Law

Ferries say “Goodbye freight, hello passengers” in the summer vacation period!

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Summer and the fast approaching school holidays can only mean one thing: vacation. Any tourism-based business thrives in the summer season, and the passenger ferry market is no different. What is good for the passenger market, however, has disadvantages for the cargo ferry industry.

Passengers and cargo generally form two very distinct divisions of the same ferry company; both with goals to meet and space to sell. Each ferry has a capacity restriction and cannot sell the same space twice. From a ferry company’s perspective, passengers are a much more lucrative proposition. Per meter, several cars fit in the same space as a 16.5m truck, generating different levels of revenue growth depending on the route and time of crossing. As an example, an average rate for a Dover – Calais crossing would be £180 for a 16.5m unit load. 4 cars would fit in this space (assuming they are not loaded on the mezzanines) at an estimated price of £90 per unit, £360 total revenue, £180 more than freight! Passengers do not get free meals or cabins, buy drinks, buy souvenirs from onboard shops and use many other onboard facilities to while away the time. And above all, passenger prices can be determined by supply and demand. Peak season prices can often be double the price, or even more, freight prices remain constant throughout the year.

Come the holiday season, the lucrative passenger market means only one thing for the cargo department that operates the Ropax ships… less space. And less space can mean letting down loyal freight customers who support the service 365 days a year. As an example, at the height of the holiday season, the most popular tourist trips on the Western Channel may only have 2 or 3 cargo slots to sell. Someone is going to lose.

Recent years have seen a decline in passenger numbers, caused by the rise of budget vacations and cheap package deals. Passenger traffic through the Scottish ports of Cairnryan and Stranraer fell by 32% in the 10 years to 2008. However, the recession and the volcanic ash crisis have meant a setback in favor of the ferry operator. All operators have launched offers and advertising campaigns to attract tourist traffic. In May this year, Brittany Ferries reported that their passenger numbers were 5 times higher than in 2009. In another example, the new Irish Sea operator Fastnet Line, operating from Swansea to Cork, claimed that due to work they were doing with Visit Wales and Tourism Ireland, passenger numbers on their routes were twice as high as they were anticipating.

So what does this mean for the cargo ferry market? Even with the traditional summer shutdown in the making, demand for cargo space remains high. Freight ferry customers should be prepared for frustration, waiting list bookings and an open mind for other routing options. In the more touristy areas, such as the Western Channel and the Irish Sea short sea routes, passengers will unfortunately be king in a rising market. Using options offered by cargo ferry operators, such as Seatruck on the Irish Sea or Cobelfret on the North Sea, can be a way to avoid cars.

Solutions

Think about the time of day you want to travel, overnight crossings may sound less appealing, but more cargo space will be available. Avoid the fast ferries, these have the highest passenger bias.

But above all, book early and be open to alternative options.

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