EMEA News
ECA Blamed for Ferry Route Closure
Danish carrier DFDS says it will close one of its passenger ferry routes due to the added cost of complying with new standards for European Emissions Control Areas (ECAs).
The company will stop service between Harwich, England and Esbjerg, Denmark on Sept. 29, 2014.
"DFDS' historic passenger ferry route between Harwich and Esbjerg has been struggling for a long time with high costs, loss of passengers and freight being switched to road transport," the company said.
"The route is therefore unable to bear the substantial additional costs that a new environmental law will entail."
The company said low-cost airlines and the loss of tax-free sales has driven down the use of the route to less than a third of its one-time passenger count.
DFDS has attempted cost-cutting efforts including slow steaming and reduction of crew numbers to save the route.
"Unfortunately we haven't been able to reduce costs enough to enable the route to bear the very high additional costs of around £2m ($3.4 million) a year," said 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 company said it is working to maintain good service on its freight route between Esbjerg and Immingham, England.
"This route will also be hit by the substantial extra costs as a result of the new sulphur rules," Smedegaard said.
"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."
DFDS has said it has been looking at as many as seven routes that could face a shutdown due to rising costs from the ECA rules.
