P&O Stena Line is set to announce plans to axe its loss-making Newhaven-Dieppe route at a meeting with unions today.
The company is proposing to redeploy the 118 seafarers working on the route, but 80 shore staff in Newhaven and 68 in Dieppe are likely to be made redundant.
The loss suffered on the route since 1995 is understood to be in the region of £25m.
Stena Cambria is currently the only vessel operating the service. The Elite fastcraft, which has suffered a series of technical problems, has already been withdrawn.
Hoverspeed confirmed that it would launch a new fast-ferry service between Newhaven and Dieppe this summer, if P&O Stena Line pulls out. However, it refused to give further details.