EMEA News
Without Money for Fuel, Greek Ferries to be Laid Up
The number of ferries sailing from the Greek ports of Piraeus, Rafina, and Lavrio to the Aegean islands and Crete may drop in half as operators struggle to pay for fuel, the Greek newspaper Kathimerini reports.
About half of the 30 ferries that sail from the ports may be laid up for at least the next three months because fuel costs, which account for about 60 percent of the operating costs for the ships, have risen 107 percent since 2009, while coastal shipping companies have lost €1 billion.
With the Greek economy in disarray, ridership on the ferries has dropped 15 percent over the last 10 months, and is likely to fall further.
"When you have a conventional ferry with a capacity of 1,800 passengers and 250 vehicles, and the daily traffic does not even reach 20 percent of that, you cannot afford to operate it as you will constantly add losses," one source from the Association of Greek Coastal Shipping Companies said.
"You either moor it or charter it elsewhere."
In response, operators are planning to replace larger ferries with smaller ones that are less costly to operate, and companies have also extended vessels' sailing times to contain costs.
Coastal shippers have also reduced vessels' traveling speeds from 26-28 knots down to 20-21 knots, which reduces daily costs by 7 to 8 percent but can result in delays of as much as two hours.
In May, Greek ferry operator Anek Lines S.A. (ANEK) said the economic and political climate in the country was contributing to its losses.
