DFDS Seaways axes Newcastle-Bergen route

Craig Eason - Tuesday 27 May 2008

The Queen of Scandinavia was brought into the route in 2006. The Queen of Scandinavia was brought into the route in 2006.

DFDS Seaways is to axe its Newcastle to Bergen route, resulting in 340 job losses. 

The Danish ferry operator has blamed an “unsatisfactory trend” over the preceding years caused by low cost airlines and rising fuel prices. 

The route closure is part of a strategic review of the company’s business and according to chief executive, Niels Smedegaard, it comes after years of struggling to make the route profitable. 

“We have done everything humanly possible to turn it around, we have swapped ships, changed concepts, but we have to recognize the lack of passengers throughout the year and the bunker prices. It is impossible to turn it into a viable business,” he said. 

“We have to throw in the towel now and focus on the remaining part of the business which has also been under pressure for the last eight years, and this is why we are undertaking this operational review, looking at routes, activities and processes.” 

First quarter figures for DFDS group were disappointing with operating profit DKr3m in the red compared to a profit of DKr45 in the same period last year, which gave net losses of DKr65m ($13.7m). 

According to a statement issued today 270 crew from the Queen of Scandanavia will be laid off in the move. But as well as the shipboard job losses, the company’s assessment of its business is resulting in 70 job losses in Norway, UK and Denmark in the first phase of a recovery plan. 

The second phase will now see the company assess its remaining passenger routes which include Newcastle and Amsterdam, Harwich and Esbjerg and the route between Oslo and Copenhagen, and how best to deploy the new ro-pax and dedicated ro-ro tonnage it will take possession of over the coming two years. 

Although the company has seen a slight improvement in its mini cruise operations between Oslo and Copenhagen, the sector has been in steady decline 

“It is overall a challenging environment we are in, and this is why we are trying to reduce the overheads and trim the organisation. We will talk with the unions to discuss further flexibility. We have to reduce costs and improve profitability,” said Mr Smedegaard. 

The Queen of Scandinavia will continue to operate on the Newcastle to Bergen route until September 1 when it will either be sold or chartered out.

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