It’s the maritime equivalent of code-sharing, but it’s a fragile relationship at the best of times. Rival operators form an alliance to ensure every sailing is as full as possible. However, with P&O announcing in May that they would be working with Irish Ferries in future, DFDS has been left on their own on the Dover-Calais route.
DFDS has politely, but firmly, told the market that they will be sailing solo on the busy Dover-Calais route, their space charter agreement with P&O Ferries expires at the end of August.
New couple say freight will benefit
It was in May that P&O surprised the industry with the announcement that The agreement that they would be entering into a mutual agreement with Irish Ferries. The space charter arrangement is common enough in the ferry business, adn it means that customers booked with either carrier will be offered the next available departure when they arrive at the port, whichever company is operating it. Obviously good news for customers, and good news for the operators too.
Initially serving freight customers, the agreement means all freight on the quayside will be shipped on the next available sailing on either carrier. This will ensure ferry capacity is fully utilised, easing port congestion, lowering the carbon footprint of the cross-Channel route and delivering efficiencies. Under the agreement, the two operators plan to extend the space charter arrangement to passengers too. They say that will offer greater flexibility over travel times, reduced port waiting times, and reduced delays, particularly in peak periods.
Better off alone for abandoned Danish partner
How jilted DFDS feels about this is something the company is not sharing in public. The company has reported tough financial numbers already this year, so the parting of ways with P&O may or may not be good news. “Ferry market leader on the Dover Strait DFDS has assessed that DFDS is in a better commercial position by operating outside a space charter agreement at this point in time,” said the company, in a terse divorce statement. “We continue to welcome collaboration opportunities to further improve the efficiency of our ferry operations on the Dover Strait,” added Filip Werne Hermann, VP and Head of BU Channel and Baltics.
The reasons for the split are unclear, but finding your partner cosying up to an Irish suitor probably has played a significant part. “We believe that we best service our customers and the market by leveraging our unique value proposition of operating two routes out of Dover – to Calais and to Dunkerque – outside a space charter structure”, said Filip Werne Hermann.
Ships passing in the light
The Dover-Calais ferry routes (and that Dunkerque route) cut across the busiest sea lanes in the world. The less direction to smooth sailing the better. P&O Ferries Chief Executive Peter Hebblethwaite was bullish about the move. “Our Dover-Calais customer satisfaction ratings are the highest they’ve been for five years and we have seen the positive impact of steps we have already taken to make the ferry option better, faster and more flexible,” he said. “Our new space charter agreement will help us continue that journey will benefit ferry customers focussed on both journey time and the value offered by ferry crossings, and gives a significant upgrade to the Dover-Calais ferry proposition compared to other options.”
DFDS is doing exactly what might be expected of a former partner. They’re showing the other side what they’re missing. “DFDS will continue to deliver reliable and efficient ferry services and focus on providing premium ferry service offerings on the Dover Strait,” said Filip Werne Hermann. “By leveraging our company values and our fleet of six vessels, we are continuing our efforts to decarbonise our cross-Channel fleet which will further strengthen our offerings in the future,” he said. The DFDS – P&O space charter agreement was entered into in May 2021 and will end when the contractual notice period is complete at the end of August 2024. Irish ferries could be forgiven for not commenting.