Irish ferry companies 'closely monitoring' Iran war for impact on fuel prices

IRISH FERRY OPERATORS are closely monitoring the impact of the war in Iran, and its resulting restrictions on oil, as they brace for the critical summer season.

Companies that link Ireland to ports across Britain and Europe have been seeking to reassure customers that journey cancellations, as seen in the aviation industry, will not feature for anyone looking to opt for travel by water over the coming months.

Rising fares are not being ruled out by some high-profile operators, with additional charges already implemented by one ferry firm in response to the ongoing closure of the Strait of Hormuz.

Last month saw Aer Lingus confirm it was cutting around 2% of its schedule as part of savings. German airline Lufthansa cut some 20,000 flights in its bid to conserve fuel.

The battle for passengers has also seen Brittany Ferries, one of the larger operators in Ireland, take a swipe at its competitors by challenging them to avoid any increases for travellers in response to the global oil supply shortage.

The company is less vulnerable to oil price shocks this year because it bought its supply for 2026 in advance.

Cost of ferry travel

Ferry operators are also aware that the cost of travel may remain a barrier for many looking at the sector as an alternative to the potential uncertainty in air travel.

For instance, a journey from Dublin to Cherbourg in late August could cost a couple travelling with a car more than €700 whereas a trip to northern France via Ryanair would cost €180. An Aer Lingus trip to Paris for the same period costs €450.

Travel journalist Eoghan Corry told The Journal that the ferry business faces more vulnerabilities when compared with airlines, partly due to sailings at risk of getting postponed or cancelled by the weather.

“The reality is that to make it viable over the year, they need a revenue stream in August to compensate for February, so you see some much higher prices for those times of the year,” Corry said.

“There’s not much you can do about the peak season. It’s a family driven business by its nature so that means it’s going to be at a higher price during school holidays.”

But if you are a family looking to take advantage of the time off from school, then the ferry holds some promise.

A round trip in mid August for a family of four, with a car, from Dublin to Cherbourg comes to €860.

However, a trip for two adults and two children with Aer Lingus to Rennes in northern France would cost more than €1,200, while a trip to Nice in the south comes to around €950. The cost of that last jaunt quickly starts climbing to heights of around €1,300 depending on the time of the flight.

Irish ferry firms monitoring war’s impact

Irish Ferries, which provides up to 38 daily sailings to Britain and France, told The Journal it was watching for “any potential implications” for fuel prices arising from the US-Iran conflict.

Its shorter routes, linking Ireland to the UK and France, “provide a degree of resilience” according to the company.

However, the company did not rule out any increases for its fares, instead explaining they would be “dynamic and responsive to a range of factors, including operational costs”, such as fuel.

One of the newer entrants in the Irish market, Hibernia Line, yesterday launched a route linking Ringaskiddy in Cork with Boulogne-sur-Mer in northern France.

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Hibernia Line’s chief executive Aidan Coffey, who previously helped to bring Danish shipping firm DFDS to Ireland during Brexit, told The Journal that the company has been assured by its fuel suppliers that stocks will remain steady, if pricey, for the coming months.

“We are assured by our bunker providers that there is no shortage of supply for the grades of fuel we use in shipping,” Coffey said.

“The cost of fuel is high at the moment and that’s for all shipping companies.”

Coffey added that pricing will be affected further by customer demand and seasonality, explaining that the company is “closely monitoring fuel price movements” given the war.

Coffey, the Hiberia Line chief executive, said the company’s new route from Cork to France is being promoted as a “value for money” option.

He further pointed to the company offering “restaurants, lounges, children’s play areas, gaming facilities, pet-friendly and accessible cabins” as a way of enticing passengers on its new route.

“Unlike flying, the overnight journey includes accommodation, vehicle transport and the freedom to carry plenty of luggage, helping passengers save on hotels, car hire and baggage fees while arriving rested at their destination,” Coffey added.

Corry, the travel journalist, said that hopeful ferry passengers this summer should consider travelling by the ‘land bridge’, getting a ferry to a British port and then driving onwards to France.

“The direct ferry to France is more comfortable, but the land bridge is always cheaper,” Corry said. “Booking early and getting season offers is best.”

Surcharges introduced by UK operator

P&O Ferries, which provides journeys from Larne, Co Antrim to Scotland, has recently tacked on extra fees for passengers due to the war.

The UK company previously ran a Dublin-Liverpool service until it stopped the route three years ago.

Its new surcharges – introduced 9 March last, shortly after the US-Israel attack on Iran – see £7.50 (or €8.69) added for anyone travelling with a vehicle. Foot passengers pay £2 (€2.32) as part of a way to make up for the increase in global oil prices.

Stena Line, one of the other main operators in the Irish market, was contacted but did not respond.

Buying oil in advance

Some ferry operators have made efforts to entice people to take ferry journeys this summer.

In an open letter published on the company’s website in recent days, Brittany Ferries chief executive Christophe Mathieu was adamant that the company will “not add any surcharge to holidaymakers’ tickets in response to the crisis in the gulf”.

It is because Brittany Ferries bought oil in advance for this year at a cost of $70 a barrel. This has meant significant savings given this week has seen the cost range between $110.75 and $114 per barrel.

The strategy is similar to that used by Ryanair as a way of insulating the company from global price shocks.

Mathieu, perhaps channelling airline chief Michael O’Leary, has claimed that some aviation and ferry companies who are looking “to others to cover their losses” if they add additional charges.

Mathieu accepted that he wants his ships “to be full of holidaymakers this summer”, but added that he wanted to offer a counterpoint to the “anxiety and fear” he blamed airlines for sowing in recent weeks.

“We are able to make this price promise to passengers because we took prudent steps to hedge the majority of fuel costs before the crisis began,” he said.

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