A review of the island’s ferry contract with DFDS has found that a new charging structure for freight has driven up prices on the shelves by 2% and not 0.4%, as the government predicted.

The first official analysis of Jersey’s 20-year deal with the Danish operator – carried out by the Economic and International Affairs Scrutiny Panel – has concluded that the ‘flat-rate’ system of importing and exporting goods has had more of an impact on the cost of living than was first thought.

One of the key recommendations of the review is that the Economic Development Minister, who is one of the signatories on Jersey’s ‘concession agreement’ with DFDS, should “commission an independent review of the flat‑rate freight-pricing structure to assess its impacts and whether it is meeting its intended objectives”.

Although the government’s response to the review is yet to be published, the minister – Deputy Kirsten Morel – has previously said that one of the strengths of the agreement is that it offers a formal structure to allow the government to discuss such matters as the pricing of the rate card with the operator.

Other conclusions from the panel include recommending that the minister ask DFDS to make sailings to and from St Malo quicker, that they should work with Guernsey to improve inter-island connectivity, especially for freight and vehicles, and better monitoring of performance.

It is clear that the service islanders and businesses are experiencing does not match the expectations they may have had

Deputy Montfort Tadier

Panel chair Deputy Montfort Tadier said: “It is clear that the service islanders and businesses are experiencing does not match the expectations they may have had, and this has resulted in much public commentary about the slow sailing times, lack of daytrips to St Malo, condition of the vessels and prices.

“Local businesses and retailers have also been critical of the flat-rate freight prices that were introduced as part of the contract.

“This review has highlighted that, while some of the early problems can be attributed to the short lead-in time DFDS faced due to the tender process, others are as a direct result of the concession agreement.”

He added: “The panel has found that some areas of the contract do not contain concrete requirements, which can lead to differences in how they are interpreted by each party.

“While it is not possible at this stage for the contract to be renegotiated, there are mechanisms available that the minister can use to request variations, and we strongly recommend that he use them to address the concerns raised.

“As this is an interim report, we will be suggesting that the next panel carry out a further review of the service once sufficient time has passed to allow for comparisons to be made.”

Responding to the panel’s findings, DFDS said: “We recognise that the first year did not meet everyone’s expectations, particularly during the early mobilisation period.

“What matters is the action taken since. We have strengthened operational planning, refined timetables using real travel data, invested in onboard comfort and accessibility, and improved communication when disruption occurs.

“Scrutiny is an important part of accountability. Our priority for 2026 is clear: reliable sailings, fair pricing and a better overall journey experience.”