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Rumpus on ferry prices

24th January 1987
Page 72
Page 72, 24th January 1987 — Rumpus on ferry prices
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Which of the following most accurately describes the problem?

• A row is brewing between the ferry companies and hauliers over the latest increase in freight rates introduced on cross-Channel routes on January 1.

Most ferry companies announced an across-the-board £12 increase in freight contract rates, with the same price increase applying on every cross-Channel route — whatever the distance. On the Dover-to-Calais route this represents an increase of 6.8%, substantially above the rate of inflation.

Transfrigoroute, the trade association of international refrigerated transport operators, is particularly annoyed by the increase. Chairman Robin East says: "I am not saying they are operating a cartel, but I must express surprise that all the ferry companies have increased their charges by the same amount, whatever the route."

What particularly angers Transfrigoroute is a new promotion by Townsend Thoresen, and the Sun newspaper, offering cheap day-trips to France in February and April for passengers. Graham Eames of Hargrave International says: "Freight is subsidising passengers on this promotion."

This charge, however, is vehemently denied by Townsend Thoresen. "This is filling the ship which would otherwise be empty," says a company spokesman. "It helps us to balance our books during quiet times of the year, and to offer our freight customers a 24-hour service. It is a giveaway price but we still make a profit. Freight customers are not subsiding these people."

Sealink says the £12 across the-board increase was a "general decision" made by the company, and reflected a practice in recent years to raise prices on all routes by the same amount.

Townsend Thoresen says: "This is a non-discountable increase as far as we are concerned. [fit doesn't stick we will be unable to offer operators such a large choice or provide the modern facilities they require."

The FTA advises hauliers to try to avoid the price increase by shopping around.

E Transfrigoroute's campaign to have cold store facilities built at Dover customs has met with only partial success. Dover Eastern Docks general manager Peter Catell has told the association that a refrigerated trailer is being purchased from Christian Salvesen for use at Dover. The 21-pallet trailer will be kept at a constant —18 to —20°C, and will be used to store frozen goods while customs and excise men check vehicle loads. Transfrigoroute members have expressed concern about the capacity of the trailer, and about whether the Customs and Excise will use the trailer.