Pandemic Affects BC Ferries’ Q1 Results of Fiscal 2021

By | 2020 Newsletter week 35 | No Comments

COVID-19 had a significant impact on first quarter results (April-May-June)

  • Net losses CAD 62 million (net earnings CAD 12.2 million)
  • Revenue CAD 137.4 million (CAD 246.4 million)

At the outset of the pandemic, ferry traffic dropped dramatically and was down 75 to 80% across the system in a matter of days. With the easing of travel restrictions, traffic at the end of June partially recovered and was down approximately 35% compared to this period last year.

  • -11.4% round trips 18,249.5
  • -61.5% passengers 2.2 million
  • -46.7% vehicles 1.3 million

BC Ferries is one of the entities included in the federal government’s transit funding of $540 million in response to the impact of COVID-19. This transit funding is to be matched equally by the Province for a total funding envelope of CAD 1.08 billion.

FERRY FINANCE

By | 2020 Newsletter week 34 | No Comments

Sharp Deterioration In Viking Line’s Results Due To The Impact Of COVID-19

Sales

  • H1 -57% EUR 97.5 million (227.0)
  • Q2 -82% EUR 22.6 million (131.1)
  • H1 Operating income EUR -27.4 million (-8.8)
  • H1 Net financial items EUR -2.1 million (-2.2)
  • H1 Income before taxes EUR -29.5 million (-11.0).
  • H1 Income after taxes EUR -23.7 million (-8.7).

The ongoing COVID-19 pandemic has caused a serious deterioration in the Group’s operating conditions. Viking Line reacted quickly to the crisis and adjusted operations to the changed market. Salary and other employment benefit expenses decreased during the second quarter. A large percentage of the staff in Finland was furloughed. In Sweden and Estonia, government-funded furloughs were also made use of.

During the period March 19-June 18, the group received aid from Finland’s National Emergency Supply Agency for cargo traffic to ensure the security of supply for four of the Group’s vessels serving the Turku – Långnäs – Stockholm, Mariehamn – Kapellskär and Helsinki – Tallinn routes.

The Group’s three other vessels were not in service at times during the period March – June. Although cargo traffic generated revenue to cover variable costs and a small percentage of fixed costs for each vessel during the second quarter, it did not generate positive operating income for the vessels in service that received aid

Revised Outlook

Change in prospects: The impact of COVID-19 pandemic has continued to cause a deterioration in the Group’s consolidated results and financial position during the peak season as well. Results for Q3, when the most of the Group’s income for the year is generated, will be significantly worse than in previous years due to the COVID-19 pandemic. The earnings outlook for the financial year 2020 has therefore been revised. Income for the full financial year will be negative.

SHORT NEWS

By | 2020 Newsletter week 34 | No Comments

Corona Case on NORBANK

Saturday 15/8 P&O’s NORBANK was taken out of service after a Covid-19 discovery was made.

One crew member tested positive for coronavirus and was placed into self-isolation.

The ferry has been moved to a lay-by berth in the Port of Liverpool.

PHOTOS OF THE WEEK

By | 2020 Newsletter week 34 | No Comments

Four-in-a-Row

By coincidence I was in Zeebrugge on 13/8, when 4 ro-ro ships were together in the PSA Zeebrugge (Wielingen Terminal). This sight is rather unusual.

Even more unusual was the fact to see three DFDS vessels, united in this terminal.

From left to right:

  • TRANSPORTER (chartered DFDS ship for route Oslofjord/Moss – Zeebrugge – Immingham)
  • FINNBREEZE (arriving from Bilbao)
  • BELGIA SEAWAYS (Zeebrugge – Göteborg)
  • MAGNOLIA SEAWAYS (Zeebrugge – Göteborg), replacing HOLLANDIA SEAWAYS during her drydock overhaul

GLEN SANNOX’s Mis-Manufactured Bulbous Bow Replaced

Following GLEN SANNOX’s move to dry dock in Greenock last week, the bulbous bow has been removed by engineers.

In 2017, before the official launch of the vessel, the bulbous bow was rejected by Lloyds Register.

The replacement of the bulbous bow is a crucial part of GLEN SANNOX’s current programme of remediation work which also includes the installation of deck windows, paint and coating repair, hull cleaning, pipework modification and more.

Lifting of British Quarantine has a Positive Effect on Cross Channel Flows

By | 2020 Newsletter week 33 | No Comments

On July 10 the British quarantine was effectively lifted, after having been announced on 26 June. Immediately people started to book their crossings, which can be seen in both the port of Dover figures, as those from the Channel tunnel.

Port of Dover has two ferry routes, one to Dunkerque (DFDS) and one to Calais (DFDS, P&O).

Since the start of the school holidays, passenger cars have seen a drop of 66% (compared to same period last year). It is a big improvement on the volumes before travel restrictions were eased.

Coaches are down 96%, although absolute volumes have started to rise slightly.

GetLink’s Passenger Shuttles transported 233,172 vehicles, which is -21% less compared to July 2019.

Le Shuttle Freight carried only -5% trucks in July 2020 and returned to traffic levels close to normal.

INDUSTRY ASSOCIATIONS

By | 2020 Newsletter week 33 | No Comments

UK Chamber of Shipping Launches Ferry Guidance Document to Ensure Passengers Remain Safe During COVID-19

The UK Chamber of Shipping has launched its new information and guidance document for UK passenger ferry operations during COVID-19. Members can access the document here .

Policy Manager Michael Igoe said: “Keeping passengers safe has, and always will be, ferry operators’ number one priority. This important document sets out practical steps to ensure passengers can continue to use ferry services safely during this unprecedented time.”

The information and guidance is aimed specifically at ferry ports and terminals, and the operators’ of scheduled ferry services that operate from the UK on both domestic and international routes. It sets out ways operators’ can continue to operate whilst keeping passengers safe, including advice on social distancing, food service and crew procedures.

Stena Line Reduces Freight Capacity As Covid-19 Impacts Business Volumes

By | 2020 Newsletter week 23 | No Comments

Stena Line will be reducing freight capacity on its Belfast – Liverpool (Birkenhead) service due to a decline in freight demand as a consequence of the Coronavirus crisis. Roro vessel STENA FORECASTER will be removed from service resulting in a reduction of 10 trips per week.

On March 9th, Stena Line launched its largest ship ever on the Belfast – Liverpool route, the brand-new STENA EDDA. STENA EDDA replaced the smaller STENA LAGAN and at the time increased capacity for both freight and travel customers.

In early 2021, Stena Line will replace STENA MERSEY with a further new ship, STENA EMBLA. These two new ropax ferries will increase freight capacity by almost 30% and will double passenger capacity compared with the vessels they replace.

Stena Group Q1 Interim Report: Covid-19 Impact

By | 2020 Newsletter week 23 | No Comments

Ferry Operations were of course hit by the plunge in passenger volumes and the decrease in freight, due to Covid-19.

  • -53% EBITDA SEK 265 million
  • -10% cars
  • -15% passengers
  • -7% freight

Stena Line has taken steps to mitigate the financial impact of the Covid-19 situation. This includes closure of routes, reducing costs and number of employees.

RoRo Operations: chartering out of vessels

  • -9% EBITDA SEK 70 million

The decrease is mainly due to lower charter income due to the sale of KAIARAHI in the Q4 of 2019 offset by strong contract coverage and utilisation across the fleet.

FERRY PORTS

By | 2020 Newsletter week 22 | No Comments

Portsmouth: Thermal Scanner To Screen Passengers For Covid-19

Portsmouth International Port has become the first UK port to install a thermal scanner to allow ferry and cruise operators to screen their passengers for Covid-19 symptoms.

The temperature screening technology involves using a camera detection system to monitor the temperature of passengers.

In the beginning it will be trialled as an option for foot passengers joining ships to help support infection control onboard. If successful, the technology could then be used elsewhere in the port.