Archive for July, 2010

Ferries say ‘Goodbye freight, hello passengers’ in the summer holiday period!

Thursday, July 1st, 2010

Summer and the rapidly approaching school break means only one thing – the holiday season. Any tourist based business thrives in the summer season, and the passenger ferry market is no different. What is good for the passenger market however, has downsides for the freight ferry industry.
Passenger and freight generally form two very distinct divisions of the same ferry company, both with targets to meet and space to sell. From a ferry company perspective passengers are a far more lucrative proposition. Per metre, several cars will fit into the same space as a 16.5m truck, generating varying levels of increased revenue 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 cargo unit. Four cars would fit into this space (assuming not loaded on mezzanine decks) at an estimate of £90 per unit, generating £360 in revenue! Passengers don’t get free meals or cabins, they buy drinks, spend money in the shops and use many of the facilities. And above all, passenger prices can be determined by supply and demand. Peak season prices are often double or even more, while freight prices remain constant all year round.
Come the holiday season, the lucrative passenger market means only one thing for the freight department operating Ropax ships…less space. And less space can mean letting down loyal freight customers which support the service 365-days per year. As an example, in the height of the holiday season the most popular tourist sailings on the Western Channel may only have as little as two or three freight spaces to sell! Someone is going to lose out.
Recent years had seen a decrease in passenger numbers, brought on by the rise of budget holidays and cheap package deals. Passenger traffic through the Scottish ports of Cairnryan and Stranraer was down 32 per cent in the 10 years up to 2008. However, the recession and the volcanic ash crisis have meant a swing back in the ferry operators’ favour. All the operators have launched deals and advertising campaigns to bring in the tourist traffic and in May this year Brittany Ferries reported a five fold increase in passenger numbers compared to 2009. Another example, new Irish Sea operator Fastnet Line, operating Swansea to Cork, claimed that due to collaboration with organisations such as Visit Wales and Tourism Ireland, passenger numbers were twice as high as expected.
So what does this mean for the freight ferry market? Even with the traditional summer shutdown in manufacturing, demand for freight space remains high and freight ferry customers need to think ahead and be prepared.

• Think about the time of day you want to travel.

• Crossings that leave during the night may sound less appealing but more freight space will be available.

• Avoid fast ferries, these have the highest passenger bias.

• Use ‘freight only’ ferry operators, like Seatruck on the Irish Sea or Cobelfret on the North Sea.

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

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