SHIPPING NEWS
WWW.EXPORTANDFREIGHT.COM
Brittany Ferries plots recovery course, after worst year in decades Brittany Ferries has published some of the most disappointing figures in its history, following its AGM in St Pol de Leon, France. In a year dominated by the Covid crisis and amid on-going Brexit concerns, 2020 passenger numbers fell to less than a third of normal levels. Freight fared slightly better, with figures down by 20 percent. Company turnover halved, as lockdown measures and restrictions on travel in all markets forced passengers to stay at home.
Thanks to its five-year recovery plan - and with ongoing support from banks and French government - Brittany Ferries says it can therefore look beyond the current storm with optimism. “In the last few years Brittany Ferries faced a double strike, firstly as a consequence of Brexit challenges and then as a result of Covid,” said Jean Marc Roué, company president. “On Brexit, the unfavourable Sterling-Euro
Independent analysis has confirmed that, following short term shock, passenger demand is likely to return quickly to support a strong and sustained recovery. As part of recovery planning Brittany Ferries commissioned an independent review of the passenger market by London-based consultancy LEK. In a wide-ranging study, they looked at external evidence such as projections for the UK economic recovery and internal factos such as customer profiles. Its conclusions were encouraging both in relation to challenges posed by both Covid and by Brexit. A rapid and full recovery in passenger volumes is forecast within the next few years.
Despite a dreadful 2020, the company is already plotting a course towards a brighter future. It has embarked on a robust five-year recovery plan to bridge the immediate crisis and prepare for a return to normal service. It has also commissioned independent analysis of the passenger market by London-based consultancy LEK. Their findings suggest that passenger volumes are expected to have recovered to 2019 levels by 2022. Freight volumes are also expected to improve.
in March 2021. However, the goal is always the long-term viability of Brittany Ferries and there is good news on the road ahead.
exchange rate hit our bottom line. The value of Sterling plummeted directly after the 2016 vote and, since then, the company lost €115 million in potential income as the majority of revenue is generated in Sterling and costs come in Euros. “Brexit concerns also affected demand. Three potential dates for the UK’s departure from the EU in 2019 created uncertainty and anxiety in the marketplace and passenger numbers fell by 5%. Despite these challenges, we remained profitable. “However, last year, the Covid crisis brought our company to its knees. It struck a blow for the regions we serve and enrich, and
the French seafarers we are proud to employ. Despite this, we are determined to remain part of the fabric of life in the north west of France as well as in the UK, Ireland and Spain and we must thank the regions of Normandy and Brittany, the banks and French state for their on-going support throughout this dark period. “With a collective will to return stronger, I believe Brittany Ferries will overcome the greatest challenge in its history.”
Long Term Goals Difficult decisions to limit costs have already been taken, for example delaying the opening of routes the company had planned to re-start
CLdN Strengthen Iberian Service to Liverpool & Dublin Having recently announced additional sailings on UK and Irish routes out of Zeebrugge, CLdN is taking the next step by increasing capacity and frequency on its Iberian service. The leading RoRo operator has announced a bi-weekly service calling both Liverpool and Dublin out of Santander as from week 14. Currently CLdN is operating a weekly service out of Santander, calling Liverpool and Dublin separately. The company was forced to detach the respective services at the beginning of this
year, as a direct result of Brexit. Thanks to being an Authorized Economic Operator (AEO), complying with most strict customs and safety and security regimes, the company is now in a position to combine intra EU and non-EU sailings and is to re-introduce the triangle trade: SantanderLiverpool-Dublin-Santander, twice a week. Leaving Santander each Saturday and
Commenting on the year ahead and the conclusions of the LEK study, Brittany Ferries’ chief executive officer Christophe Mathieu added, “There is no doubt 2021 will be another tough year for our company. However, we will continue on the path to recovery, taking tough decisions if necessary but encouraged by the findings of this independent report which show the market is ready to bounce back. “We will always place the longterm interest of Brittany Ferries at heart and as long as we continue to be supported by our staff, shareholders, the banks, as well as by regional and national governments, I believe we can navigate a path through the storm. The future for Brittany Ferries can be as bright as the rich history which precedes it.”
Wednesday, arriving in Liverpool on Monday and Friday and subsequently calling Dublin on Tuesday’s and Saturday’s. A spokesman commented on the expansion of the services: “Driven by the success of our youngest unaccompanied routes from the Iberian Peninsula directly to the UK and Ireland, the market can benefit from increased capacity and frequency shortly. Allowing our customers to increase turnaround times of their equipment and rely on a robust service bypassing the Landbridge, with its administrative burdens. “We are confident this will give a boost to our services and is the right answer to growing market demand, the modal shift from accompanied to unaccompanied transport and to designing sustainable supply chains with a low carbon footprint.”
EXPORT&FREIGHT
59
