Capacity Reduced on Dover Straits

Capacity Reduced on Dover Straits

LD Lines is ending its Dover-Boulogne passenger service as an estimated 40% overcapacity on the cross-Channel routes fuels a rates war. P&O Ferries has already warned of possible job losses, while state-owned SeaFrance continues to trade after being placed in administration by a French tribunal which is assessing two alternative strategies for the company. LD Lines, the Louis Dreyfus Armateurs subsidiary, will operate its last Dover-Boulogne passenger ferry on September 5, but LD Lines is examining whether to launch a reduced frequency freight-only service on the route.

LD Lines managing director Christophe Santoni said of the Dover Strait routes: “A return to profitability can only be achieved for the ferry industry by adjusting supply to demand, increasing prices and market consolidation. Whilst there remains huge over capacity on the Dover Strait, we are addressing this issue now by looking to see if such a revamped service is economically sustainable, despite a continually difficult trading climate. We estimated the overcapacity to be more than 40% of the total capacity deployed on the Dover Strait routes: Dover-Calais, Dover-Dunkirk and Dover-Boulogne. I include Eurotunnel in that market capacity.” Mr Santoni said that rates have fallen by around 40% since 2007 due to intense competition, a position made worse by currency fluctuations.