CMA (UK) secures offer of commitments from P&O Ferries and DFDS

By | 2022 Newsletter week 24 | No Comments

In November 2021, the UK Competition and Markets Authority (CMA) launched an investigation into an agreement between ferry companies P&O Ferries and DFDS A/S. This agreement – known as a ‘capacity sharing agreement’ – provides a ‘turn up and go’ function for freight customers at the Dover and Calais ports, allowing them to take the next available ferry regardless of which of the 2 operators they booked with. The agreement aims to reduce journey times and congestion at ports for freight customers, while also providing broader potential benefits for supply bottlenecks and the wider economy.

While the CMA recognises the flexibility such an agreement allows, it is concerned that aspects of the companies’ arrangements could, if unaddressed, ultimately lead to higher prices and fewer sailings.

For example, when implementing this agreement, P&O and DFDS created a single schedule to space out the firms’ departures more evenly. However, as part of this, the companies also removed some journeys entirely from their schedule and documentation gathered by the CMA showed they planned to further reduce the number of sailings in the future. Such behaviour could lead to higher prices and less frequent journeys for both tourists and freight customers.

The CMA is also concerned that the agreement could encourage each company to cancel off-peak sailings at short notice because it will allow them to keep revenue from customers even if they travel on the other firm’s ferry. Such cancellations would cause disruption to freight and tourist customers on the busy Dover-Calais route and could also lead to higher prices.

In addition, the CMA believes the agreement has the potential to fix the amount of freight customers each firm carries in relation to the other. Fixing amounts in this way would likely reduce the companies’ incentives to compete for customers by offering lower prices and better service quality.

Following CMA intervention, the companies have proposed to commit to:

  • not agree with one another the number of sailings that each company operates
  • put strict limits on the number of sailings that they may cancel
  • amend the agreement to make clear that it does not fix the amount of freight customers that either company may carry

The CMA will now consult on the commitments offered, providing an opportunity for third parties to voice any thoughts or concerns. Any responses must be made by 5pm on 4 July 2022 and will be considered as the CMA reviews the commitments offered by P&O and DFDS.

Brittany Ferries transports its first CMA CGM container from France to UK

By | 2022 Newsletter week 2 | No Comments

The partnership between Brittany Ferries and the CMA CGM Group has taken a new major step forward with the first loading of CMA CGM containers.

Loaded on special chassis and transported aboard COTENTIN, they left Le Havre for Portsmouth on Wednesday 12 January.

Concluded in September 2021, the commercial partnership between CMA CGM and Brittany Ferries creates complementarities between the two companies, between the maritime transport of passengers and freight, and will allow, based on the respective expertise of the CMA CGM Group and Brittany Ferries, the development of cross-Channel maritime transport and consolidation of France’s place in this sector.

Win-Win Alliance between CMA CGM and Brittany Ferries

By | 2021 Newsletter week 37 | No Comments

Alliance between two iconic French companies with far-reaching possibilities and synergies:

  • CMA CGM has agreed to make a €25 million investment in Brittany Ferries, including €10 million in quasi-equity. Through this agreement, CMA CGM is seeking to support Brittany Ferries’ post-Covid-19 recovery.
  • The partnership will help to unlock synergies.
  • A representative of the CMA CGM Group will join Brittany Ferries’ Supervisory Board.
  • Commercial partnership: CMA CGM can use available cargo space on board Brittany Ferries’ services to the United Kingdom, Ireland and the Iberian Peninsula. (faster cargo flows than with containers)
  • The transportation of goods aboard Brittany Ferries ships will help expand the CMA CGM Group’s offering in the roro sector for the Atlantic and northern coast of France to destinations in the United Kingdom.
  • Brittany Ferries will gain more expertise in modern freight and logistics needs. (multimodal).
  • New roro services will be created.
  • CMA CGM has since many years roro operations between Marseille and the Maghreb. See on their website for more information.

With more than 500 vessels, CMA CGM Group offers a combined capacity of 3 million TEUs.

After Maersk and MSC (*), it is the third largest container group.

(*) MSC Group owns ferry companies GNV and SNAV

New RoRo Link to be Launched by CMA CGM, Connecting France, Spain and Morocco

By | 2021 Newsletter week 30 | No Comments

CMA CGM starts a new regular roro shortsea Med service connecting Marseille – Barcelona – Casablanca on August 24.

1 RoRo vessel: AKNOUL – 1,200 lane metres

Rotation: 7d – Marseille/Barcelona/Casablanca/Marseille

Frequency: Weekly

Transit times: Marseille > Casablanca in 3 days | Barcelona > Casablanca in 2 days | Casablanca > Marseille in 2.5 days

Advertised as “best transit times in this market” and “50% less CO2 compared to road transport via short ferry routes.”