Mario Quero of Trasmediterránea says fuel volatility is the problem with the high-speed business model. Image: Trasmediterránea
Mario Quero, Managing Director of Spanish ferry-operator Trasmediterránea, says the problem with the business model of high-speed vessels is that it is "very exposed to fuel volatility," Spanish media reports.
Quero says high speed "makes sense when distances are short and justified, and when the fuel price is at moderate levels. I do not think high speed will recover over longer distances, it would not make much sense. Nor does it have to maintain that high speed throughout the off-season, not beyond the summer period. "
In 2007 and 2008, Trasmediterránea is said to have experienced a break in the financial balance supporting its high-speed programme due to a rise in fuel prices.
"When we make decisions, we look at the past a lot. Five years ago we had Brent at $120 a barrel; In 2016 it fell to 30 and now it is around 50 dollars," said Quero
"We have to go to models where exposure to fuel volatility produces the least possible impact."