DFDS: Ferry Changes In The Baltic Sea

By | 2020 Newsletter week 28 | No Comments

After her charter with Brittany Ferries the newly returned SIRENA SEAWAYS embarked on her first sailing on her new route between Paldiski – Kapellskär taking over from OPTIMA SEAWAYS that was repositioned to Klaipėda-Karlshamn.

SAILOR’s charter agreement will soon expire, as she goes to Tallink.

PATRIA SEAWAYS takes over SAILOR‘s schedule for the Paldiski-Hanko and Paldiski- Kapellskär routes, starting from Week 28.

Rene Pärt, Baltic Sales & Partnership Manager, says, “We are establishing ourselves in the Northern Baltic Sea region by changing both of our vessels in Estonia with bigger and better ones to continue servicing our wide customer base on Paldiski-Kapellskär.”

“The new setup provides more flexible tonnage opportunities for our freight customers on the Klaipėda-Karlshamn route and with PATRIA and SIRENA sailing from Paldiski, they will ensure an efficient mix of passenger and freight capacity in the Northern Baltic”.

(Source: DFDS News)

DFDS

By | 2020 Newsletter week 27 | No Comments

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.

New DFDS Route Between Frederikshavn (DK) And Oslo

By | 2020 Newsletter week 24 | No Comments

When DFDS resumes sailings on the Oslo – Copenhagen ferry route from 25 June, a new ferry route between Frederikshavn and Oslo will open at the same time.

It will not be possible for passengers to travel between Copenhagen and Frederikshavn only. That’s why DFDS calls it two separate routes.

The target group for the new route is in the first place passengers travelling with their own car for transport purposes (not mini cruise). Onboard facilities and experiences will be adapted to this target group. The route between Copenhagen and Oslo will also focus more on transporting passengers when it resumes service.

“We look forward to welcoming passengers travelling between Denmark and Norway for holidays in summer houses and hotels or other purposes. The new route will also contribute to tourism and trade in and around Frederikshavn and Oslo. We also look forward to welcoming freight customers on the route,” says Torben Carlsen, CEO of DFDS.

TECHNOLOGY

By | 2020 Newsletter week 22 | No Comments

Danish Companies Join Forces On An Ambitious Sustainable Fuel Project

DFDS has together with Copenhagen Airports, A.P. Moller – Maersk, DSV Panalpina, SAS and Ørsted formed the first partnership of its kind to develop an industrial-scale production of sustainable fuels for road, maritime and air transport.

The joint vision is to establish one of the world’s largest electrolyser and sustainable fuel production facilities

When fully scaled-up by 2030, the project could deliver more than 250,000 tonnes of sustainable fuel for busses, trucks, maritime vessels, and airplanes every year. Production would potentially be based on a total electrolyser capacity of 1.3 gigawatts, which would likely make it one of the world’s largest facilities of its kind. The production from the fully scaled facility can reduce annual carbon emissions by 850,000 tonnes.

TECHNOLOGY

By | 2020 Newsletter week 21 | No Comments

Reducing Energy Consumption By Retrofit

DFDS’ VICTORIA SEAWAYS and two MR tankers from Hafnia and Maersk Tankers are part of Green Ship of the Future’s Retrofit project.

Green Ship of the Future has released a report to show how retrofitting can result in significant reduction of energy consumption decreasing fuel consumption and emissions on board three vessels, including the DFDS ferry. According to the project findings, this can be achieved through technology that is available today with a return of investment of less than three years.

The report finds that VICTORIA SEAWAYS can potentially achieve up to 11.1% reduction of fuel consumption by implementing new and proven technology that is easily implemented such as new propellers and new hull coating exemplified by Hempel in this report. All the suggested solutions were calculated towards an estimated payback time of three years to show the potential of making a green investment in a manner that minimizes operational cost and improve the potential of profitability.

DFDS Q1 Published – Outlook Mainly Affected by Travel Restrictions

By | 2020 Newsletter week 19 | No Comments

Ferry Shipping News already published the Preliminary Results for Q1, a few weeks ago.

The definitive results are now available on the DFDS website.

Outlook

EBITDA before special items for 2020 is likely to be reduced towards DKK 2bn. The outlook – that is significantly more uncertain than usual – builds on a number of assumptions of which key elements are freight volumes and the impact of travel restrictions on passenger route operations and volumes. The current suspension of passenger activity has a significant financial impact that may amount to up to around 60% of the potential decrease in EBITDA in 2020 compared to 2019.

FERRY SHIPPING

By | 2020 Newsletter week 18 | No Comments

DFDS Optimises Seaways Following Changes in Northern Baltic Market Conditions

The schedule on the Estonia-Sweden route (Paldiski-Kapellskär) has been improved by offering both freight customers and passengers more attractive evening departures and morning arrivals through the week. Evening departures in both directions will now be possible every day by the addition of a second vessel.

This improvement is enabled by a halving of sailings between Paldiski and Hanko (Finland) following reduced demand on this route. This allows the ropax SAILOR on the route to be deployed on both Paldiski-Hanko and Paldiski-Kapellskär. On the latter it will sail in addition to OPTIMA SEAWAYS.

In addition, a freight agreement has been entered into with Eckerö Line on the freight route between Muuga (Tallinn) and Vuosaari (Helsinki). (vessel: FINBO CARGO)

The agreement starts from the end of April 2020.

With these changes, a total of 30 departures per week between Estonia and Finland can be offered to DFDS’ customers.