Mezeron & Steam Packet Master Thread

[Trueblood]

The best way to win back freight business is clearly to put your prices up even further:

 

http://energyfm.net/cms/news_story_131465.html

 

Heard that on the radio on my way into work. Couldn't believe my ears!

[jack bauer's brother]

people need to realise we live on an island,everything is expensive,the ferries,the planes,a pint of milk,a pint of beer,a loaf of bread,a 3 piece suite,a wardrobea christmas tree EVERYTHING,sometimes when i go across and see how cheap it is on the mainland i wonder if i would like to live there,but you know what i like living on this wonderful beautiful island and people have got to realise that because we do live on an island we will pay more for it,it would be nice if the steam pkts money could be kept on island instead of feathering aussie nests though,what the island needs is a local billionaire to take it over,dont think a stenna line or a dfds kinda company can come in and do any better as i read in paper last week theyre losing millions.

[EORH]

people need to realise we live on an island,everything is expensive,the ferries,the planes,a pint of milk,a pint of beer,a loaf of bread,a 3 piece suite,a wardrobea christmas tree EVERYTHING,sometimes when i go across and see how cheap it is on the mainland i wonder if i would like to live there,but you know what i like living on this wonderful beautiful island and people have got to realise that because we do live on an island we will pay more for it,it would be nice if the steam pkts money could be kept on island instead of feathering aussie nests though,what the island needs is a local billionaire to take it over,dont think a stenna line or a dfds kinda company can come in and do any better as i read in paper last week theyre losing millions.

A loaf of bread in Tesco's yesterday was 60 pence,but they seem to have run out of UHT milk,had none for a week now,maybe they should use both SPCO and Mezzy.

With this ferry/freight war going on,and Quayle has declared war,does that mean they are going to drop their prices,which means the supermarkets will pass on the savings to its customers?,You know every little helps.

[Terse]

With this ferry/freight war going on,and Quayle has declared war,does that mean they are going to drop their prices,which means the supermarkets will pass on the savings to its customers?,You know every little helps.

Errmmm.... not exactly! CLICK

[Lost Login]

Fair assumption but not correct. I tried 2 days either side of the above and srtill the same price. IOMSPCo don't operate their fares like airlines. It's take it or leave it job.

They do operate fares like airlines. If you went out on the Tuesday 21st the fair is down to I think £220. If you had tried booking six months ago then I expect you would have found cheaper fares.

 

The fares on the SP may be expensive but booking in advance and having some flexibility so you avoid the busy sailings and you do get cheaper fares. I think it also compares well with the Airlines as the cheapest flight you could get to Livepool return the your original dates for 2 is £217 without bagage, booking fees. With a bag each and no booking fee it is £265

[Barrie Stevens]

Fair assumption but not correct. I tried 2 days either side of the above and srtill the same price. IOMSPCo don't operate their fares like airlines. It's take it or leave it job.

They do operate fares like airlines. If you went out on the Tuesday 21st the fair is down to I think £220. If you had tried booking six months ago then I expect you would have found cheaper fares.

 

The fares on the SP may be expensive but booking in advance and having some flexibility so you avoid the busy sailings and you do get cheaper fares. I think it also compares well with the Airlines as the cheapest flight you could get to Livepool return the your original dates for 2 is £217 without bagage, booking fees. With a bag each and no booking fee it is £265

 

Steampacket Chairman Robert Quayle on Sunday Opionion opined that the Mezeron ships serving Douglas had been chartered for three months which is a very short time in shipping terms.

 

Such a charter may be for three months/option further three months/option further three months. (In Mezeron's option) However, after three months is up the ships can be released by either the Owners or the Charterers and Mezeron, if it chooses, will have to go back into the market and charter again other ships.

 

The market will probably still be in their favour for some time to come. However, if the three months figure is true it shows just how shallow is their commitment ie if the Steampacket do fight back or Mezeron falls out of favour then they have very little to lose and surely with the freight they are taking will more than have covered their chartering costs.

 

The Steampacket is obliged to invest over the long term in owned tonnage in order to justify the Linkspan Agreement.

 

Mezeron's box operation might yet prove to be a five minute wonder

[Tempus Fugit]

simple, just go on 21st and return on 6th for £183

Daytime service?

 

getting fussy now

 

you could still go for £100 less

[P.K.]

'We will beat Mezeron', says Quayle

 

However, I recommend listening to Roger Watterson's excellent interview with Mr Quayle on the Manx Radio Opinion Programme yesterday

 

There's a nice pocket history of the Isle of Man Steam Packet at the start of the programme. Roger Watterson knows his subject here and I thought he stepped up a gear or two in his interview style for this one.

 

Well worth listening to if anyone is at all interested.

 

I listened to this yesterday (I was waiting for some paint to dry) and frankly it's an hour of my life I would like back. Mr Quayle was very coy on who the owner's were, what action they were taking, how it's the haulier and not the stores who have gone to Mezeron and so forth. Basically nothing new at all. The amount of freight they have lost would appear to be about 20% which has got to hurt. Although he did say the banks who own the shares clearly want to fight back, but then they would as the assets fall so far short of the loans it's the ONLY way they can get a return on their investment.

 

However he didn't mention that they were going to put freight charges UP and he MUST have been central in that decision making process!

 

Funny that...

[Andy Onchan]

Fair assumption but not correct. I tried 2 days either side of the above and srtill the same price. IOMSPCo don't operate their fares like airlines. It's take it or leave it job.

They do operate fares like airlines. If you went out on the Tuesday 21st the fair is down to I think £220. If you had tried booking six months ago then I expect you would have found cheaper fares.

 

The fares on the SP may be expensive but booking in advance and having some flexibility so you avoid the busy sailings and you do get cheaper fares. I think it also compares well with the Airlines as the cheapest flight you could get to Livepool return the your original dates for 2 is £217 without bagage, booking fees. With a bag each and no booking fee it is £265

Even at 220 that still puts them almost twice as expensive (per nm) as P&O who are not even the cheapest (and I don't want to travel by air).

 

The point I'm making is that Quayle is bleating on about having to cope with 15% less revenue. My answer would be to say, OK let's start putting bums on seats and cars on the deck because we need the revenue.

 

Then we learn that they put up their prices for the freight, the very reason why they lost the revenue in the first place!

 

I wanted to write more.... but I am truly lost for words on this occasion.

[Lost Login]

The point I'm making is that Quayle is bleating on about having to cope with 15% less revenue. My answer would be to say, OK let's start putting bums on seats and cars on the deck because we need the revenue.

 

That is fine if the demand is price sensitive and that for every 1% increase in price there will be a greater than 1%in passenger number.

 

I do not believe that is the case. In general I use the boat when I want to go across with the car, something like 5 or 6 time a year. A increase or decrease in fares is unlikely to alter than greatly, certainly if the fares halved in price I would not be doubling my number of journies. I expect that would be the case for majority of users although I appreciate some who might feel priced out would start using the boat.

[jimbms]

With this ferry/freight war going on,and Quayle has declared war,does that mean they are going to drop their prices,which means the supermarkets will pass on the savings to its customers?,You know every little helps.

Errmmm.... not exactly! CLICK

Please tell me I have read that link wrong but all I saw was the rackets answer to combat the cheap freight charges by Mezeron is to put its frieght charges up. With a business plan like that then Tont brown will have some serious competition for his job from whoever came up with that gem.

[Manxman2000]

'We will beat Mezeron', says Quayle

 

However, I recommend listening to Roger Watterson's excellent interview with Mr Quayle on the Manx Radio Opinion Programme yesterday

 

There's a nice pocket history of the Isle of Man Steam Packet at the start of the programme. Roger Watterson knows his subject here and I thought he stepped up a gear or two in his interview style for this one.

 

Well worth listening to if anyone is at all interested.

 

I listened to this yesterday (I was waiting for some paint to dry) and frankly it's an hour of my life I would like back. Mr Quayle was very coy on who the owner's were, what action they were taking, how it's the haulier and not the stores who have gone to Mezeron and so forth. Basically nothing new at all. The amount of freight they have lost would appear to be about 20% which has got to hurt. Although he did say the banks who own the shares clearly want to fight back, but then they would as the assets fall so far short of the loans it's the ONLY way they can get a return on their investment.

 

However he didn't mention that they were going to put freight charges UP and he MUST have been central in that decision making process!

 

Funny that...

Freight charges are going to go up, but not yet. The rates have been reduced for favoured customers who have not changed to the Mezeron service. It is to give others the opportunity to poach Graylaws customers with some success

Edited December 14, 2010 by Manxman2000

[P.K.]

Freight charges are going to go up, but not yet. The rates have been reduced for favoured customers who have not changed to the Mezeron service. It is to give others the opportunity to poach Graylew’s customers with some success

 

That makes perfect sense. But the price rises are restricted by the UA of course.

 

Now assuming enough Graylaw's business is lost the Mezeron operation will presumably run out of steam (sorry, couldn't resist) and they'll pack it in at the current level.

 

Now these "favoured customers", do any of them really think that on the demise of Mezeron's twice-daily sailings the SP won't then hike their prices back up?

[censorship]

I listened to this yesterday and frankly it's an hour of my life I would like back.

Why on Earth did you bother? Do you tune into local radio stations around the world to listen to shipping debates?

[Manxman2000]

Freight charges are going to go up, but not yet. The rates have been reduced for favoured customers who have not changed to the Mezeron service. It is to give others the opportunity to poach Graylew’s customers with some success

 

That makes perfect sense. But the price rises are restricted by the UA of course.

 

Now assuming enough Graylaw's business is lost the Mezeron operation will presumably run out of steam (sorry, couldn't resist) and they'll pack it in at the current level.

 

Now these "favoured customers", do any of them really think that on the demise of Mezeron's twice-daily sailings the SP won't then hike their prices back up?

None are that stupid,

 

Are freight charges governed by the user agreement? I think not, so we shall stand by to be fleeced again soon.