Ferry Operator Says Bunker Costs Will "Substantially Increase" in 2015

by Ship & Bunker News Team
Monday March 10, 2014

Ferry company Irish Continental Group says it is preparing for new limits on sulfur emissions in 2015 that will "substantially increase" bunker fuel costs and require bunker surcharges, and it needs to educate its customers about the issue.

"This increased cost will have to be borne by the end customers," the company said.

"This action will be necessary in order to maintain a viable freight network for the benefit of Ireland's exporters and importers."

The ferry operator's revenues grew 3.4 percent in 2013 to €264.7 million ($367.0 million), and profit from continuing operations was up 14 percent to €23.3 million ($32.3 million).

The company's overall profit was down due to the sale of subsidiary Feederlink, which boosted its 2012 results.

''2013 was a successful year for the Group with a solid financial and operational performance in a competitive passenger and freight market place," said Chairman John B McGuckian.

"The improving economic outlook in Ireland has encouraged us in our recently announced investment in the charter of an additional vessel, the Epsilon, which has been trading since mid December.

"RoRo freight volumes are up 18% year on year, to date, despite adverse weather conditions which have led to cancelled sailings."

German carrier Hapag-Lloyd said in January that it was warning shippers of increased costs that the new rules in 2015 will necessitate but that few other carriers seemed to be doing the same.