DFDS scuppers Dover-Calais space charter after P&O finds new partner
NewsDFDS has told the market that they will be sailing solo on the busy Dover-Calais route, as their space charter agreement with P&O Ferries expires at the end of August.
DFDS saw a Q1 2024 net loss despite a revenue surge, with the ferry volumes up, but land transport stagnant amid mixed market conditions.
Danish DFDS experienced a shift to a net loss in the initial quarter of 2024 amidst a varied market landscape. According to its quarterly statement, the company recorded a net loss of DKK 48 million (US$6.9 million) in the first quarter, a contrast to the DKK 137 million (US$19.7 million) net profit in the same quarter of the previous year.
Nevertheless, the company observed a surge in revenue, climbing from DKK 6.3 billion (US$912.9 million) in Q1 2023 to DKK 7 billion (US$1 billion) in the current quarter. EBITDA for the period experienced a slight decline of 2% from Q1 2023 figures, totalling DKK 957 million (US$137.7 million).
As anticipated, the existing market conditions remain mixed. DFDS witnessed a higher-than-expected increase in ferry volumes across most of its network during the first quarter, while its land transport network encountered predominantly stagnant or reduced volumes. Lingering overcapacity intensified pricing pressure in specific market segments.
The Ferry Division reported a 10% revenue increase, with freight volumes escalating by 8.9% compared to the first quarter of 2023. Volume growth was evident across all business sectors, reflecting a general upswing in activity across the network compared to the relatively subdued levels of Q1 2023. The most significant growth was observed in the Baltic Sea and Channel networks. However, the variance in Easter timing compared to 2023 diminished volumes in March.
The Logistics Division also witnessed a 10% revenue surge, despite the Dry Goods volumes’ mixed performance across the three regions. Baltic volumes experienced a decline due to reduced Finnish and Swedish activities, alongside soft activity levels in Norwegian and Danish operations. This was counterbalanced by increased Sweden-UK volumes and the continuous expansion of warehousing operations.
Overall, Continent-UK volumes remained above 2023 levels, while automotive volumes and part-loads experienced a decrease in the quarter, partly due to the March Easter holiday. New initiatives launched in Poland continued to demonstrate growth.
Source: Project Cargo Journal
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