Fjord Line puts two ferries out of service on routes between Norway and Denmark to ship engines. Gas prices have reached unsustainable levels, says CEO.
Ferry operator Fjord Line withdraws LNG-fueled vessels after struggling to make ends meet.
The Russian invasion of Ukraine has caused prices on LNG to surge to such levels that the carrier no longer can sustain consumption.
Therefore, the company has decided to put two vessels out of service in order to replace their engines, writes Finansavisen.
This is not how we want to manage our routes.
Brian Thorsted Hansen, CEO, Fjord Line
The ferries in question are employed on routes between /Stavanger-Hirtshals and Langesund-Hirtshals.
”Developments in prices have made it unsustainable for us to service the routes,” says CEO Brian Thorsted Hansen to Finansavisen.
Changing the motors on ferries Stavangerfjord and Bergensfjord will set the carrier back roughly USD 35.5m.
Instead, the ferries will have duel-fuel motors installed able to sail on both marine gas oil and LNG.
As a consequence, there will be no servicing between the two destinations in Norway and Denmark between Feb. 8 and May 23 next year.
Fjord Line had already scaled back on frequencies and prolonged sail time on the routes to cut back on fuel consumption.
”This is not how we want to manage our routes. But we have been forced to adapt to current price levels on LNG, and reducing speed and the number of routes have been the best way to do so,” says Hansen.
