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Displaying items by tag: Maritime Economist

The Irish Maritime Development Office (IMDO) has announced the publication of the 18th edition of the Irish Maritime Transport Economist.

In this edition, we report on 2020, one of the most challenging years that the Irish maritime industry has faced for many decades.

The outbreak of COVID-19 in Q1 had a dramatic and negative effect on freight and passenger volumes. Public health concerns necessitated the imposition of restrictions on the movement of people, internationally and domestically.

In the early months of the pandemic, passenger volumes fell by over 90%, while RoRo freight volumes fell by over 25%. Although other shipping market segments were not immune to the suppressive economic effects of the public health restrictions, their impacts were not as deep or as lasting as those experienced in the RoRo freight and passenger segments.

The second half of 2020 stands in marked contrast to the first half, from a RoRo and LoLo freight perspective. The losses of the first half of the year were recovered, as initial public health restrictions were eased and most retail activity recommenced in Q3.

Moving through Q4, combined RoRo and LoLo freight volumes set a new record of 1,324 points on the IMDO’s iShip Index for unitised trade. Unitised volumes were bolstered by the desire of traders to create stockpiles in advance of the year-end Brexit deadline. RoRo and LoLo volumes in Q4 were sufficient to make good earlier losses and bring overall unitised throughput for the year to just 1% below 2019 levels.

The restrictions on international travel introduced in Q1 remained in place, resulting in passenger volumes falling by 73% for the year. Bulk trades were also negatively affected by lockdown measures. Market demand for bulk materials, particularly in the construction and transport sectors, fell significantly.

The COVID-19 pandemic and preparations for Brexit placed unprecedented pressure on the maritime industry in 2020.  The response of the industry to the COVID-19 outbreak has been remarkable, from both an operational and a health and safety perspective. 

Connectivity to international markets was maintained, supply chains were protected and measures were put in place to protect the health and safety of users of (Irish) ports and shipping services. All of this was achieved while preparations ramped up for the UK’s departure from the EU, the result of which involves a new regime of border controls and inspections in our ports. This work was undertaken with commitment and professionalism by all workers in our maritime industry, who are deserving of our thanks and admiration. 

In conclusion, may I take this opportunity to wish all those involved in the maritime transport sector success in the vitally important work they do in maintaining and expanding Ireland’s trade links with the rest of the world and in driving growth, efficiency and competitiveness in our economy. 

The effects of COVID 19 continue to be felt in the maritime industry, but the resilience that the industry has demonstrated in recent times and the growing success of the Government’s vaccination programme, give cause for optimism in the industry’s to bounce back and contribute to the recovery the Irish economy.

Published in Irish Ports

Ferry & Car Ferry News The ferry industry on the Irish Sea, is just like any other sector of the shipping industry, in that it is made up of a myriad of ship operators, owners, managers, charterers all contributing to providing a network of routes carried out by a variety of ships designed for different albeit similar purposes.

All this ferry activity involves conventional ferry tonnage, 'ro-pax', where the vessel's primary design is to carry more freight capacity rather than passengers. This is in some cases though, is in complete variance to the fast ferry craft where they carry many more passengers and charging a premium.

In reporting the ferry scene, we examine the constantly changing trends of this sector, as rival ferry operators are competing in an intensive environment, battling out for market share following the fallout of the economic crisis. All this has consequences some immediately felt, while at times, the effects can be drawn out over time, leading to the expense of others, through reduced competition or takeover or even face complete removal from the marketplace, as witnessed in recent years.

Arising from these challenging times, there are of course winners and losers, as exemplified in the trend to run high-speed ferry craft only during the peak-season summer months and on shorter distance routes. In addition, where fastcraft had once dominated the ferry scene, during the heady days from the mid-90's onwards, they have been replaced by recent newcomers in the form of the 'fast ferry' and with increased levels of luxury, yet seeming to form as a cost-effective alternative.

Irish Sea Ferry Routes

Irrespective of the type of vessel deployed on Irish Sea routes (between 2-9 hours), it is the ferry companies that keep the wheels of industry moving as freight vehicles literally (roll-on and roll-off) ships coupled with motoring tourists and the humble 'foot' passenger transported 363 days a year.

As such the exclusive freight-only operators provide important trading routes between Ireland and the UK, where the freight haulage customer is 'king' to generating year-round revenue to the ferry operator. However, custom built tonnage entering service in recent years has exceeded the level of capacity of the Irish Sea in certain quarters of the freight market.

A prime example of the necessity for trade in which we consumers often expect daily, though arguably question how it reached our shores, is the delivery of just in time perishable products to fill our supermarket shelves.

A visual manifestation of this is the arrival every morning and evening into our main ports, where a combination of ferries, ro-pax vessels and fast-craft all descend at the same time. In essence this a marine version to our road-based rush hour traffic going in and out along the commuter belts.

Across the Celtic Sea, the ferry scene coverage is also about those overnight direct ferry routes from Ireland connecting the north-western French ports in Brittany and Normandy.

Due to the seasonality of these routes to Europe, the ferry scene may be in the majority running between February to November, however by no means does this lessen operator competition.

Noting there have been plans over the years to run a direct Irish –Iberian ferry service, which would open up existing and develop new freight markets. Should a direct service open, it would bring new opportunities also for holidaymakers, where Spain is the most visited country in the EU visited by Irish holidaymakers ... heading for the sun!