The owner of Irish Ferries has voiced concern over the economic forecast into 2023 as it reported a surge in revenues.
Irish Continental Group saw its ferries division revenues more than double to €338 million in the first ten months of the year over the same period in 2021 – a rise of 83% over pre-pandemic 2019.
“The increase was principally due to the easing of travel restrictions as compared to the same period last year, increased fuel surcharges and the new Dover–Calais service which commenced in June 2021,” the company said in a trading update.
Irish Continental, which also runs a container and terminal division, added that its ferries carried 525,600 cars in the year two November 19, an increase of 198% on the previous year.
The group said: “Both of the group’s divisions have performed strongly for the first 11 months of the year.
“However, as we enter 2023, the world is facing higher inflation and higher interest rates, both of which pose a challenging backdrop for economic growth. Deep sea container movements are usually a leading indicator for economic slowdown and the recent weakness here is not unexpected.
“While we assume the worst of the Covid-19 pandemic has passed and some normality to our markets has returned, the level of inflation faced by the business and our customers is concerning.
“While fuel prices may ease versus earlier in the year with the expected slowdown in economic activity, other costs in the business have increased. The business has so far been successful in passing through most of these increases.
“Our record of substantial investment in people, ships and terminal facilities and the strength of our balance sheet means we are well placed to compete in this emerging tougher environment and to tap into whatever interesting opportunities might emerge.”