DFDS has announced a new flat rate price for freight sailings – which will “promote competition” and “remove a barrier to market entry”, according to the Government’s top economist.
The Danish shipping giant yesterday published details of its freight sailings linking Jersey, Portsmouth and St Malo – with a flat rate price of £56 per lane metre and £45 for commodities.
This pricing is applied in line with the terms of the tender, and follows discussions between DFDS and Government economists seeking to assess the impact of pricing for the “lifeline” service on food prices.
During a joint briefing to media yesterday, the Government said that analysis indicated a very small increase in food prices, calculated to be a maximum of 0.4%, would result from the new rate.
The Government’s Chief Economist Tom Holvey said that a move to a published flat rate card was “encouraging”.
“It will promote competition in the island, provide openness of this element of the vital supply chain, and remove a barrier to market entry, which over time will help keep prices as low as possible for islanders,” he added.
“If this did result in short-term price pressures, these would be expected to be below half a percentage point according to our calculations.”
Any future increase in the freight rate would be capped at the rate of inflation, it was confirmed.
The exact rates currently charged by Condor Ferries, which will provide the existing links until the end of its contract in just over five weeks’ time, are not known – but it is believed the rates vary as a result of volume.
DFDS route director Chris Parker said the schedule had been produced following extensive discussions with stakeholders, with the final version receiving “fantastic feedback” from those involved.
The MV Arrow – which is 122 metres long and has a capacity of 1,057 lane metres – will sail overnight from Portsmouth to Jersey, arriving in St Helier Harbour the following morning and then making a daytime return trip to the south of England.
On Saturdays, after docking in St Helier, the vessel will be deployed on the weekly St Malo service before resuming its Portsmouth sailings on Sunday.
Mr Parker said there would be additional freight capacity on the Stena Vinga, which will carry passengers and freight on the Portsmouth route, as well as to and from St Malo on the fast ferry Tarifa Jet.
He added: “We hope this marks a positive step forward for the island, with DFDS adopting this new structure to demonstrate a long-sighted commitment to connecting Jersey with its trade partners.
“We shall of course, continue to improve and refine our services, working with the community, but are pleased to be moving forward with operations.”