Cruise and ferry companies threatened with massive rise in fuel costs

Cruise and ferry companies are joining forces to fight new regulations which could lead to massive hikes in fuel costs.

The Passenger Shipping Association said new sulphur regulations planned for 2015 could lead to increases of up to 87% for ships operating within the Emission Control Areas.

Simon Johnson, passenger services director for P&O Ferries who took his up role as PSA chairman this week, said this would have a major impact on the sector.

"The ferry industry could see the closure of longer routes and the cruise industry may see itineraries curtailed, affecting revenue and visitors in ports," he said.

"Together with our partners, I can confirm that the PSA will continue to seek government support in finding measures to alleviate the substantial financial effects for passenger services that are confined to operating within an ECA."

Johnson takes over the position from Peter Shanks, MD and president of Cunard Line, whose two-year term has come to an end

Shanks takes on the role as vice chairman.

Christophe Mathieu, group strategy and commercial director for Brittany Ferries, takes on the role of chair of the PSA's Ferry Section.

by Bev Fearis