DFDS offers 'transparent' flat rate freight price

A flat rate freight pricing policy will provide more "transparency around ferry costs", Jersey's new ferry operator DFDS has said.

In line with the terms of the tender process, the Danish company announced its flat rate prices - meaning each importer will pay the same rate regardless of how much freight they bring to the island.

It said it was using a "flat rate price of £56 per lane metre and £45 for commodities".

DFDS said commodities meant non-time-sensitive loads, including construction materials meant for use in major construction projects, but has not provided a definition of a lane metre.

DFDS, which is due to start operating from the island next month, also released its freight schedule for sailings to the UK on Thursday, with 12 return sailings a week to the UK and one to St Malo, France.

The company said it hoped the changes would "encourage a more competitive market and provide greater certainty around the transportation of goods".

Carl Walker, from the Jersey Consumer Council, said: "It was never really clear from a consumer perspective as to what everything from a bag of cement to a loaf of bread was costing to bring in.

"Now, everybody will be on a level playing field, everybody will see what things cost to bring over and would give us a better idea of who is providing the best value for money."

He said there could be an initial "bump in the road" if companies passed on price increases to customers.

Mr Walker said: "Some will inevitably have to pay more and some may be paying slightly less than they're currently paying so we're going to see that potentially filter through to the prices in the things that we buy in the supermarket.

"Looking at it more long-term, what this gives is price transparency so that now we will know exactly what freight companies are charging.

"When people complain that things are more expensive here we will be able to get more of an idea as to why and where those pinch points might be that need addressing in the future."

The government's chief economist Tom Holvey said the published flat rate was "encouraging" and any changes resulting in short-term "price pressures" would be expected to be below "half a percentage point".

He said: "It will promote competition in the island, provide openness of this element of the vital supply chain, and remove a barrier to market entry, which over time will help keep prices as low as possible for islanders."

Passenger bookings for the new ferry services between Jersey, France and the UK were put live in January - with the chief minister warning the first few weeks were likely to be a "little bumpy".

Chris Parker, route director for Jersey, said: "We hope this marks a positive step forward for the island, with DFDS adopting this new structure to demonstrate a long-sighted commitment to connecting Jersey with its trade partners.

"We shall of course, continue to improve and refine our services, working with the community."

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