Leading ferry operator DFDS says 'no negative impact' from #Brexit

Some feared the outcome of the EU Referendum last June would lead UK into stormy waters.

But the company has posted record earnings and announced ambitious plans for the coming 12 months.

The ferry and logistics business said there had been “no negative impact” on volumes from the Brexit effect.

The company’s annual report for 2016 showed that freight volumes and UK-Continental trade flows are holding up well despite the result of the UK referendum last June.

Full-year revenues for the group were up by eight per cent compared with 2015.The company also carried 12% more passengers during the year.

Higher earnings for the shipping division helped pre-tax profits jump by 52% compared with last year. Improved earnings on DFDS’ cross-Channel routes from Dover to Calais and Dunkirk accounted for almost half of the increase following the deployment of additional ferry capacity since February 2016 and continued growth in the freight market.

A company spokesman said, “Rising freight volumes in the final quarter of 2016 indicate no impact on cross-border trade between the UK and Europe following the Brexit vote. Across the European route network 17% more freight was carried during this period than at the same time in 2015. Passenger numbers on its routes also increased by 6% over the same period.

“Whilst depreciation of the British pound in the last six months of the year impacted on the full-year result, this was offset by the continued increase in volumes and rates in the freight market.

“Volume growth was supported by increases in capacity, thanks to the introduction of two new ferries - the Cote des Dunes and the Cote des Flandres - on the Dover to Calais service, and on the key freight corridor between the UK and the Netherlands on the North Sea.”

Commenting on the figures, Kasper Moos, vice president for DFDS in the UK, said: “Our earnings increased considerably during 2016, with the vote for Britain to leave the EU having little real impact on volumes.”

Moos added, “We will continue to monitor developments, however. Thanks to our work to continuously improve our service and to offer customers the capacity they require across our network, we have continued to grow our markets and we’ve posted another year of record financial results.

“Our pursuit of continuous improvement will continue in 2017, with further investment in our fleet, a focus on bringing digital innovation that benefits our customers, and a drive to further improve customer satisfaction with the services that we provide.”

Looking ahead to 2017, DFDS said it expects revenues to increase by a further 4% across its ferry and logistics business.

Moos added: “As a ferry and logistics operator with more than 2,200 employees in the UK, we are at the heart of the ongoing Brexit process and based on trends for the last few months of 2016, we expect to see continued growth in trade.”

The company said it will invest almost £20m in 2017 to expand capacity and renew its fleet.

Two new, large chartered freight ships for its route from Immingham to Rotterdam in the Netherlands, are due for delivery in May and September.

The investment programme also includes improvements to passenger and freight facilities on two cruise ferries on the Newcastle-Amsterdam service and on one of its Dover-Calais ships.

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