HSW’s EXPRESS PEGASUS Introduced on the Crete-Dodecanese Subsidized Line

By | 2020 Newsletter week 32 | No Comments

The Hellenic Seaways’ veteran EXPRESS PEGASUS will be introduced –-summer season 2020– on the Sitia (Crete)-Kasos-Karpathos-Rhodes subsidized line.

From August 5 to September 27, the ferry will connect Crete with Dodecanissa for the first time in her Greek career. The ship is expected to leave the port of Piraeus soon.

According to the schedule she will depart every Monday, Wednesday and Friday at 11.00 from Sitia and every Tuesday, Thursday and Sunday at the same time from Rhodes.

EXPRESS PEGASUS was built in Italy in 1977. Her carrying capacity is for 1.294 passengers and 185 private cars.

Increased Protocol and Strict Measures on Board Greek Ferries

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On August 2, the Hellenic Ministry of Shipping and Island Policy announced the change in the health protocol with an increase of the passenger capacity on board coastal ferries to 80%.

The protocol on the ships with cabins is also increased to 85%, while the minimum distance of 1,5 meters is maintained between the passengers.

The passenger and crew cabins would accommodate up to four people if they are first- or second-degree relatives or people with disabilities with their escort.

At the same time, it was decided the mandatory use of face mask –from August 4 to August 18, 2020- inside and outside the ferries.

The passenger protocol in the high-speed crafts will be also increased to 80% only if they have High Efficiency Particulate Air (HEPA) filters and their installation and operation is certified according to the manufacturer’s instructions.

The shipowner, the operator and the ferry masters are responsible for the preparation of the aircraft-type seats coverage plan for each ship. Passengers, masters and crew members are required to comply with COVID-19 outbreak prevention and control measures before boarding, during boarding and when disembarking on passenger – car ferries that perform domestic trips.

For any violation of the provisions and measures the fines imposed are:

  • to passengers, naval agents and crew members the administrative fine is 150 euros
  • to ship-owners, operators and ship masters the administrative fine is 1.000 euros.

Eckerö’s H1 Result also Marked by Pandemic

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  • Ferry ECKERÖ and cruise vessel BIRKA STOCKHOLM were out of service as of March 15. ECKERÖ resumed operations June 26.
  • 7 million passengers traveled with the Eckerö Group’s vessels (1.5 million last year)
  • Turnover EUR 52.8 million (EUR 102.0 million)
  • Operating profit EUR -21.8 million (EUR -7.6 million)
  • Profit including unrealized changes in market value of bunker hedges, EUR -22.2 million (EUR -5.5 million)
  • Interest-bearing liabilities EUR 99.2 million (EUR 91.8 million)
  • Net debt EUR 89.0 million (EUR 65.8 million)
  • On July 3, the Group’s intention to close down the Birka Cruises business area was announced

Tallink July 2020 Statistics Show Recovery

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Tallink transported a total of 617,206 passengers in July. That is half of last year’s July, but more than double of June 2020.

The number of cargo units transported on all the company’s vessels in July 2020 decreased by 2.9% and amounted to 29,108 cargo units.

The greatest reductions in the number of cargo units transported have been on the Latvia-Sweden and Estonia-Sweden routes.

On the Estonia-Finland and Finland-Sweden routes cargo transportation, however, actually increased in July compared to July 2019, 2.4% and 7.1% respectively.

The total number of passenger vehicles transported in July this year also decreased: 118,167 vehicles (155,297 in July 2019).

Normal route operations, comparable at least to some extent to previous years, continued only on Tallinn-Helsinki, Muuga-Vuosaari, Paldiski-Kapellskär and Turku-Stockholm routes.

Tallinn-Stockholm and Helsinki-Stockholm routes were and currently still are suspended completely and the Riga-Stockholm route only operated four limited capacity special trips during the month.

At the same time, the company operated a number of new temporary routes and several additional special cruises during the month, which helped recover passenger numbers at least to some extent. New temporary routes such as Helsinki-Riga, Turku-Tallinn, Stockholm-Visby, a number of special cruises from Tallinn via Helsinki to Aland and one special cruise from Helsinki to Saaremaa, all proved popular with the customers and have enabled travellers around the Baltic sea to travel safely close to home this summer.

FERRY FINANCE

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Irish Continental Group H1: Strong Freight Performance Despite Pandemic

It is no surprise to see that the transportation of goods has kept ICG busy, while the passenger figures dropped considerably.

Volumes (Half Year 30 June 2020)

  • -65.0% Cars
  • -2.7% RoRo Freight
  • -11.7% Container Freight (teu)
  • -13.5% Terminal Lifts

H1 Finance (unaudited)

  • -21.6% Consolidated Group revenue €130.8 million
  • -33.3% Total revenues €61.6 million

The decrease was principally due to lower passenger volumes resulting from the travel restrictions introduced across the EU due to the Covid19 pandemic.

DFDS

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DFDS Adapts To Post Covid-19 Market Conditions

The new initiatives include:

Industry sales of large freight customer solutions, involving both ferry and logistics operations, will be combined in one unit. The unit will be part of the Logistics Division Overlapping functions will be streamlined.

Freight and logistics operations will be adapted to new market conditions, including optimisation of port terminal and haulage operations

Passenger concepts have been aligned to changes in travel market dynamics (mainly transportation and holiday travel).

Onboard concepts and offerings have been simplified.

A range of improvement and efficiency projects will simplify and focus business support functions. This includes a reshaped and integrated IT and digital organisation as well as a downsizing of various functions.

These initiatives are expected to generate annual cost savings of up to DKK 250m. In 2020, a positive financial impact of DKK 50-75m is expected.

The adaptation to the new market conditions will lead to around 650 employees leaving DFDS in the coming months, 200 of whom are employed in Denmark. DFDS currently employs around 8,600 people.

A one-off redundancy cost of around DKK 100m is expected in 2020 and will be recorded under Special items

DFDS: Current Situation

Freight volumes in Q2 have in most areas been above expectations and of the 12 freight carrying ferries laid up in March/April, five have now been redeployed.

One of the passenger routes, Oslo-Frederikshavn-Copenhagen, reopened on 25 June following the opening of borders between Denmark and Norway.

The reopening of the second passenger route, Amsterdam-Newcastle, and the non-essential travel on the English Channel is contingent on an easing of UK and EU travel restrictions.

DFDS:  Outlook 2020

On 7 May 2020, the outlook for EBITDA before special items was reduced towards DKK 2bn.

Uncertainty remains exceptionally high, particularly for passenger travel, and this may still cause the outlook and its assumptions to change significantly in the second half of the year.

Therefore, the 2020 outlook for EBITDA before special items is maintained at this point in time.

FERRY FINANCE

By | 2020 Newsletter week 20 | No Comments

“Financial Aid Ok, But In Accordance With Existing Rules,” Says Emanuel Grimaldi

Q1: Finnlines Group’s revenue was almost on previous year’s level

  • Revenue EUR 130.5 million (-5%)
  • Result EUR 20.7 million (+28%)
  • Cargo units 186,000
  • Cars (not including passengers’ cars) 41,000
  • Passengers 121,000

“Operationally the quarter ended in difficult conditions, with a strong impact on passenger transport and a slowed down growth in business globally. Finnlines is not immune to this slowdown in global trade and we also need to mitigate the Covid-19 impact. Thus, we have taken steps to lower costs and have implemented cost-saving plan,” said CEO Mr Grimaldi in a news release.

“Governments across Europe have promised various emergency measures to shipping companies. This can lead to very unfair competition. Any financial aid has to be provided in accordance with existing rules, and that individual companies should not be singled out for support at the expense of more robust rivals. Any aid, either from governmental or from security of supply agencies, should be available to all shipping companies, regardless of their financial strength, in order to avoid distorting the marketplace and risking antitrust complaints. If the state intervenes, it has to intervene in a such way that it does not create unfair competition.”

Good Start Of A New Era For Fjord1 – Q1 Results

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Q1

  • Revenue NOK 752 million (+17%) after the start-up of new routes on 1 January 2020
  • EBITDA NOK 194 million (+23%)
  • Reduced frequency on ferry and passenger boat routes due to travel restrictions have had a limited financial impact, although the effects on Catering and Tourism have been significant.
  • The vessel renewal programme is coming to an end, with five vessels delivered in Q1. Two deliveries remain out of a total of 25 new and upgraded vessels.
  • Fjord1 views 2020 as a ramp-up year, with the start-up of several new ferry contracts, the completion of the vessel newbuild programme and further progress in the electrification of the fleet. Fjord1 is well-equipped to navigate this more uncertain market environment, with a long-term contract portfolio of NOK 22.8 billion and exciting long-term prospects in the tourism industry.
  • Travel restrictions for technical personnel from Germany and Italy may delay the completion of electrification infrastructure. Such delays could postpone the start-up of fully electric ferry routes. This will in turn, postpone the release of government-funded NOx compensation for the new vessels, public infrastructure payments and expected fuel cost savings, as well as the turning point of the net interest-bearing debt.

Outlook

  • Fjord1 believes there will be demand for safe, environmentally friendly and reliable transport in coastal regions in the future.
  • Fjord1 assesses new tender opportunities in the Norwegian market on an ongoing basis, as well as opportunities outside of Norway.
  • Fjord1 has a strong contract portfolio of NOK 22.8 billion in total value through 2033, excluding options and index regulation.
  • In 2020, revenue is expected to grow by 10-15% compared with 2019. The increase will be driven by the new ferry connections that started 1 January 2020.

Pandemic Drags Down Viking Line’s Q1 Results

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Some key elements of the Q1 report.

  • Passenger traffic is marginal at present, since only the transport of people between the Finnish mainland and Åland is allowed.
  • Quick measures to cut costs have been necessary. Basically the entire staff has been furloughed.
  • Backed by Finland’s National Emergency Supply Agency’s decision to aid cargo traffic to ensure the security of supply, four of the Group’s vessels are serving the Turku – Långnäs (Åland) – Stockholm, Mariehamn – Kapellskär and Helsinki – Tallinn routes. Viking Line’s three other vessels are not in service.
  • While current cargo traffic generates revenue for each vessel to cover variable costs and a small portion of fixed costs, it does not generate positive operating income for the vessels in service.
  • To strengthen liquidity and safeguard the future of the Company, Viking Line has begun negotiations for additional funding. The intention is to use State guarantees proposed in a supplementary budget submitted to the Finnish parliament.
  • Operating income totalled EUR – 21.5m (-14.2).
  • Passenger-related revenue was EUR 63.2m (83.0), while cargo revenue amounted to EUR 11.3m (12.3). Net sales revenue was EUR 54.9m (70.1).