What does the future hold for Seafrance as the operator and parent company SNCF continue to make huge losses?
SNCF made substantial losses of € 14 million in first 4 months of 2009. It is reported that Seafrance had a negative cash flow of € 41 million during 2009. Seafrance originally declared a recapitalisation plan of € 60 million in February this year, but recent reports suggest this is now closer to € 100 million.
Details of the plan to recapitalise are unclear other than reports to move 400+ Seafrance employees to other posts within SNCF and the potential sale of 2 ferries. Seafrance has applied to Brussels for funds, but any decision is likely to take considerable time. In the mean time, losses continue to mount on a daily basis. Last weekend’s strike action cost Seafrance over € 1 million in lost revenue alone!
How will this affect the market ?
Freightlink has seen a sharp increase in the number of enquiries from current Seafrance clients. Perhaps more importantly, we have seen a distinct pattern of new clients making sound business decisions by splitting volume and securing rates at today’s competitive prices rather than risk not having a second option should Seafrance suffer from further strike action, or even worse.
As Freightlink witnessed in 2007 when Ferryways was purchased by Cobelfret, the Ferryways ferry services disappeared within weeks, with many clients struggling to find space at competitive prices. It was a simple case of ferry economics, less space = price increase.
One thing is for sure, in the current unstable climate, none of the Dover operators are doing deals to encourage new traffic. Why cut rate, when the traffic could come at a much higher rate ?
Freightlink is able to offer highly competitive rates now for clients who commit support and volume. Please contact Steve Lonsdale – Sales Manager +44 (0) 7738 767 136 or our Customer Service Team 0844 847 9000 or visit freightlink.co.uk for our service information.
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