Research and Analysis of Options for Ferry Freight Fares

ISBN 978 1 909948 49 5

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Contents

Executive Summary

1 Introduction

1.1 Overview
1.2 Scope of this Study
1.3 State Aid
1.4 Note on Terminology
1.5 Structure of this Report

2 Current Practice - Commercial Vehicles

2.1 Overview
2.2 Commercial Vehicles - Key Issues
2.3 Network Specific Findings

3 Current Practice - Non-CV Freight

3.1 Overview
3.2 What do we mean by Non-CV Freight?
3.3 Network Specific Findings
3.4 Non-CV Freight - Key Issues

4 International Benchmarking

4.1 Overview
4.2 Research-Wide Findings
4.3 European Union Member States Operating Publicly Supported Ferry Services

5 Option Development

5.1 Overview
5.2 The Appraisal Framework
5.3 Option Development and Assessment
5.4 Charging Mechanism
5.5 Current Fares
5.6 Development of Fares Options
5.7 Analysis of Impact of Potential Fares Systems
5.8 Surcharges, Discounts and Policy Questions
5.9 The Consultation Process

6 Fares Options & Consultation Responses

6.1 Overview
6.2 General Comments
6.3 Comments on Option 1: Best Fit Function - Variable Rate per Lane Metre per Mile
6.4 Comments on Option 2: Fixed Charge plus constant rate per lane metre per mile
6.5 Comments on Option 3: Fixed Charge plus rate per lane metre per mile based on distance threshold (50% reduction when miles >50)
6.6 Comments on Option 4: Constant Rate per lane metre per mile
6.7 Comments on Option 5: Constant Rate per lane metre per mile within distance band
6.8 Comments on Option 6: Flat Fare per lane metre
6.9 Comments on Option 7: Flat Fare per lane metre within distance band 90
6.10 Summary

7 Surcharges, Discounts & Policy Questions and Consultation Responses

7.1 Overview
7.2 Wide Loads
7.3 Weight-Related Surcharges
7.4 Height-Related Surcharges
7.5 Drop Trailers
7.6 Demand Management
7.7 Bunker Adjustment Factor
7.8 Discounts
7.9 Defining a Commercial Vehicle
7.10 Should Fares Rise to Reflect Network Improvements?
7.11 Loose Parcel Service
7.12 Summary

8 Conclusions

8.1 Conclusions

Glossary

FIGURES

Figure 5.1: Fares Development Process Chart

Figure 5.2: 2012/13 Fares (£/lane metre) and Route Distance

TABLES

Table 4.1: Freight Charging Policy - European Union Member States Operating Publicly Supported Ferry Services

Table 4.2: Freight Charging Policy - Non-EU Member States Operating Publicly Supported Ferry Services

Table 4.3: Freight Charging Policy - Non-EU Member States Operating Publicly Supported Ferry Services

Table 5.1: Fares Types taken forward for Quantitative Analysis

Table 5.2: Summary of Distributional Impacts of Shortlisted Options

Table 5.3: Consultation Responses

Table 6.1: Options to be Taken Forward for Further Consideration

Table 8.1: Summary of Fare Options to be Taken Forward for Further Consideration


Published Date 23 Jun 2015 Updated Date 16 Mar 2017 Type Mode of transport