Shop prices likely to rise slightly under Jersey's new freight service

Supermarket prices could potentially rise by around 0.4% from March as DFDS takes over shipping with new freight flat rates.

DFDS has announced its freight service schedule for Jersey when it replaces existing operator Condor Ferries on 28 March.

It has chartered the Ro-Ro cargo vessel MV Arrrow, which has previously been used as a backup ship bringing goods into the Channel Islands.

The Arrow will run six round trips a week from Portsmouth, with early morning arrivals into the island.  Additionally, it will operate a once-a-week export and import service to St Malo.

The Arrow is the fourth and final vessel to be announced for DFDS's Jersey fleet, joining the conventional passenger and freight ship the Stena Vinga, and high-speed ferries the Levante Jet on the Poole route and Tarifa Jet serving the St Malo route.

Route Director Chris Parker says the Arrow is familiar with local waters and will meet the capacity of the market 'very comfortably'.

Coupled with the Stena Vinga, there will be 12 round sailings a week to the UK, plus the one to France.

 The MV Arrow on a previous visit to St Helier harbour

Part of the government's tender requirement for the Jersey contract was for a flat rate for freight.  

That has been revealed as £56 for each linear line metre on the MV Arrow and Stena Vinga ships and £45 for commodities.

In a briefing to media announcing the pricing model, the government's Chief Economist Thomas Holvey was asked whether it will have an impact on the prices of goods in the shops.

He said it is believed supermarket inflation could rise by up to 0.44% at the most, which was described as 'not a significant amount'.

Mr Holvey believes the transparency of the flat rate will encourage competition.

"A move to a published flat rate card is encouraging. It will promote competition in the island, provide openness of this element of the vital supply chain, and remove a barrier to market entry, which over time will help keep prices as low as possible for islanders.

"If this did result in short-term price pressures, these would be expected to be below half a percentage point according to our calculations."

In an interview with Channel 103, Route Director Chris Parker told us he could not comment on the implications for onward pricing.

"I don't know what was being charged previously.  All I would say is, as part of the tender process, we were asked to provide a flat rate, and we were asked to make that flat rate as competitive as it could be.

"We've tried to keep prices down. We've tried to make it sustainable for the island, but obviously we've had to charge prices which allow us to reinvest in our fleet and have a sustainable service.

"From a DFDS perspective, our view is that we now have a transparent pricing structure which everybody can see (and) there's clarity on how that will change in the future, due to caps on future rises in the tender. It gives clarity for businesses and consumers to do their future planning."

 The other ships DFDS is using  - the Stena Vinga, Levante Jet and Tarifa Jet

MV Arrow will take over from Condor's Commodore Goodwill as the island's main freight ship, with 1057 lane metres and a length of 122 metres.

DFDS wants to reinvest in three new replacement vessels.

"We are looking to have three new vessels for the island within the next eight years and it is important we have the revenue stream that allows us to make those investments."

The Tarifa Jet will be the first to go in 2028, followed by the other two in 2030 and 2032.

Chris Parker says they will speak to stakeholders about what comes next:

"Whether that's for freight or tourism, what should that vessel look like? What's the size? We'll talk about capacity.

"[2028 is] when we'll start to see the reinvestment in the fleet."

Freight bookings can be made from 3 March 2025 online or by contacting DFDS’s freight team.