Research and Analysis of Options for Ferry Freight Fares

Footnotes

1. The pros of option 1 are: 1) Relatively small fare changes vis a vis the current situation and 2) Maintains a link between cost and distance and minimises the overall change in fares. The cons of Option 1 are 1) Upholds the current fares structure and its anomalies and inconsistencies. 2) Lacks rationale for the current shape and position of the best-fit line. The routes with Most Adverse Impact are 1) Uig-Tarbert-Lochmaddy and 2) Lerwick-Kirkwall.

2. Although Option 1 Best fit function was considered during the consultation process, at the 4th Working Group Meeting on 26th February 2015 it was agreed that it could be dropped, as it does not resolve existing inconsistencies and lack of rationale, it merely removes the extremes.

3. The definition of large CV varies from 6m on CalMac RET routes to 5m on CalMac non-RET routes. Setting the definition of large CVs as 5m for the purposes of this research ensures that all are captured.

4. Non-RET routes are routes that do not currently have RET but will receive RET for passengers and cars from October 2015.

5. RET routes are routes where RET fares are already applicable for passengers and cars.

6. Specific, Measurable, Attainable, Relevant and Time Specific

7. http://www.northlinkferries.co.uk/other/freight/2014-freight-rates/

8. The pros of option 1 are: 1) Relatively small fare changes vis a vis the current situation and 2) Maintains a link between cost and distance and minimises the overall change in fares. The cons of Option 1 are 1) Upholds the current fares structure and its anomalies and inconsistencies. 2) Lacks rationale for the current shape and position of the best-fit line. The routes with Most Adverse Impact are 1) Uig-Tarbert-Lochmaddy and 2) Lerwick-Kirkwall.

9. For example, Barratlantic and Kallin Shellfish have both invested in small refrigerated vehicles that are less than the 6m threshold. Macleans Bakery has also invested in sub-6m vans to enable them to expand their business throughout the Outer Hebrides.