MO raises ferry fares by Sally Nash • Hikes in
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P&O's ferry freight rates could add an extra £70,000 to annual bills, warn international hauliers, although many are sceptical that the new fares will stick.
Transport firms are taking a "wait and see" approach to the news about the rise, which comes hot on the heels of the Government's decision to give the green light to the P&O/Stena Line merger.
From 1 January next year hauliers face rises of up to £16.50 per vehicle for both long and short and North Sea crossings.
P&O says that, despite a freeze on rates for four years, its costs have continued to rise. The Road Haulage Association moved quickly to condemn the timing of the move, warning that average bills could rise by about 10%.
Laser Transport fears the increase could cost it as much as £72,000 a year if the company decides to stick with P&O, which is not a certainty.
And Mike Beer of Mike Beer Transport, which uses P&O crossings for about 100 vehicles a week, also puts the figure at about £72,000.
Colin Young, of Cranleigh Freight Services, says another £1,000 a week could be added to its bill. "So P&O hasn't increased its rates for four years," says Young. "Well all I can say is, join the club!"
Other hauliers insist that it is still too early to say if the new rates will stickP&O has sent out similar letters in the past and then backtracked due to pressure from transport firms.
However, they stress they will have no choice but to reconsider their options— the Channel Tunnel or other ferry operators—if rates do not come down.
David Holmes, of Holmes of Heathrow, says it might be time to support smaller ferry operators such as SeaFrance.
And Mike Beer sends a warning to P&O: "If P&O turns out to be the only ferry company to raise rates that will force us to reconsider." • Ferry operator Caledonian MacBrayne has been told by the Government to save haulier's jobs by dropping plans for fare increases next year between Ullapool and Stornoway. Caledonian MacBrayne is proposing a fare increase of 6.4% for commercial vehicles.
A Highlands and Islands Enterprise report says that over two thirds of the extra £407,000 charges would be borne by road hauliers, undermining the competitive position of islands-based firms.