Route is unable to bear new sulphur rules
DFDS’ passenger ferry route between Harwich and Esbjerg has been struggling for a long time with high costs. The route is unable to bear the substantial additional costs that a new environmental law will entail.
It will close on 29 September 2014. DFDS is now gathering its efforts to secure the major freight route between Esbjerg and Immingham and the many jobs that this route also generates.
The loss of tax-free sales and increasing competition from low-cost airlines mean that passenger numbers have fallen from 300,000 to around 80,000. Transport of industrial cargo between the UK and Denmark has also declined.
DFDS has worked hard to cut costs on the route to make it more competitive. Among other tactics, the route was changed into a combined freight and passenger service, the number of crew on board was reduced, slow steaming was introduced to save fuel, the number of departures was decreased and centralised sales tried to increase passenger numbers with aggressive marketing. “But unfortunately we haven’t been able to reduce costs enough to enable the route to bear the very high additional costs of around 2m a year,” says DFDS CEO Niels Smedegaard. “This is what the new environmental law and the requirement to use low-sulphur oil will cost based on current oil prices from 1 January 2015.
“The route is of particular historical significance to DFDS so it’s a very sad day for us all. Our regrets go to our many passengers who must now see the last passenger ferry route between the UK and Scandinavia close. It’s also regrettable that up to 130 jobs on board and ashore will be affected by the closure, even though we are fortunate that we can offer jobs to everyone onboard on other routes.“
The two big and modern vessels offer a daily departure each way with a crossing time of 18 hours. “This route will also be hit by the substantial extra costs as a result of the new sulphur rules. We therefore need to keep a tight focus on costs to prevent the transfer of freight to road transport that will otherwise become a consequence of the new sulphur rules. We will therefore step up negotiations with employees, partners and other stakeholders to find solutions to reduce costs and increase flexibility. That will help us ensure the route’s development as an important transport route between the UK and Denmark – and also as an important employment base,” says Niels Smedegaard.
SIRENA SEAWAYS, the vessel which has served the route since 2003, will be moved to other duties.
Source and Image Credit: DFDS