Freight Services

The consultation paper noted that previous feedback provided by the community has highlighted that freight bookings can impact available vehicle spaces on vessels.

Around 300 respondents answered Question 16, with the most frequent suggestion being that freight only ferries should be considered. There were also calls for:

• nighttime/off peak freight services;
• offering an incentive for non-perishable freight (whisky, malt, machinery, etc) to be transported on lower demand sailings;
• and more affordable freight tariffs, including with commercial hauliers being eligible for RET.

These issues, along with other points made, are the focus of the analysis at the next question.

In relation to improving the Operator’s collaboration with hauliers and businesses:

• An Other Business Representative Body respondent commented that in terms of communication and stakeholder engagement, there is scope for improvement.
• A Haulage Industry Representative Body noted that some of their members report good relationships with the Operator, particularly where there are service level agreements in place, but that others find that getting a response from the Operator can be slow.
• A Ferry Board, Committee or Group respondent explained that they have consulted with local hauliers who have reported very minimal issues with the unbookable routes but significant problems with the bookable routes.

Reflecting a theme across a number of questions, the Ferry Board, Committee or Group respondent went on to suggest that the solution is not related to planning or timetabling but is about increased numbers of sailings and reduced cancellations.

There were suggestions relating to improving day-to-day collaboration, including operators having a member of staff dedicated specifically to dealing with freight issues. Other suggestions included:

• Having a dedicated email address and contact number for dealing with freight issues could allow for better knowledge of the system and speedier resolutions to the freight sector’s attempts to contact the Operator.
• Developing route-based relationships, so that the Operator has a much closer relationship with its end freight customers at a community/island group level.

Other comments focused specifically on booking arrangements, and in addition to calls for a radical overhaul of how block bookings are managed, there were calls for the Operator to be transparent and fair when allocating freight capacity. There was an associated suggestion that some hauliers are given preference. A Local Authority respondent also reported concerns that some of their teams do not receive the same treatment as other hauliers when being allocated space on the ferry, and that despite being a frequent and high-volume user of the services, the Council often finds itself disadvantaged when trying to take materials on and off the islands. Other booking system related comments included that:

• There also needs to be a duty on the Operator to effectively manage freight bookings, with penalties for non-compliance.
• Hauliers should be expected to share how much space they intended to use per sailing in advance.
• As above, having dedicated teams managing commercial bookings.

In relation to collaboration around service planning, suggestions included:

• A more formal approach to engaging freight-users should be introduced under the new contract. That forum should include appropriate representation by Transport Scotland and possibly CMAL in addition to CalMac, to enable improvements to be implemented.
• The commercial transport sector, as well as the haulage trade, could work in collaboration with the Operator to develop a framework as to how to best plan capacity availability; this would be particularly relevant for seasonal goods/freight demand. A Transport Partnership respondent reported that a building group in Shetland appears to have developed a successful approach to collaborating with NorthLink Ferries and consideration could be given to replicating this model in CHFS.
• Regular, planned, liaison meetings between the Operator and key logistics companies, commercial companies and commercial company trade association representatives. It was suggested that this dialogue needs to be informed by regular transport capacity studies linked to estimates of future demand from industry and residents.
• Haulier representatives could attend or join Ferry Committees.
• All those who have made recent freight bookings could be invited to a virtual meeting ahead of the next timetable preparation.

In terms of those timetables, there were calls to recognise the importance of freight and making sure that freight ferry times align better with haulage firms’ schedules.

Around 305 respondents answered Question 17, with many of the issues raised similar to those at previous questions, and at Question 3 in particular.

The importance of providing the right and sufficient services for freight was highlighted, including recognition of the vital role freight traffic plays in supporting island economies. However, it was also suggested that services are not meeting need and demand; as an example, an Other business or representative body reported that ten distilleries on Islay and Jura rely on the Islay ferry but that the service is perceived to be operating in crisis mode and is struggling to meet the current demands of the whisky industry and the wider Islay and Jura communities.

As at Question 3, it was suggested that the emphasis must be on meeting rather than reducing demand and there was reference to increased freight volumes usually being reflective of a thriving economy, with other comments including that:

• It is important to remember that freight traffic is two way and that there is a huge volume of often perishable or indeed alive produce going off islands which needs a degree of priority.
• The definition of freight should be broader and take account of the needs of island freight requirements. For example, more allocated space to support road improvements should be available.
• There are a number of major projects underway that will be transformative to the Highlands and Islands regional economy, including ScotWind. The Public Body respondent raising this issue also noted that there are also a number of significant projects in development, including the Western Isles Interconnector, EDF onshore wind farm, and the Stornoway Deep Water Port development, as well as further growth of the whisky industry on Islay. All of these will require ferry capacity and resilience to be improved.

In terms of meeting and managing demand, the most frequently made points were that:

• Additional overall capacity, with more sailings and/or larger vessels, is needed.
• Freight only services should be introduced. These could include nighttime or off-peak sailings, with differential fares. A Farming or land management organisation respondent commented that sailings would need to be at sensible times to allow hauliers to make use of them.

A Transport Partnership respondent highlighted that the implications for cost, capacity and potential uptake, as well as how additional sailings would meet the needs of freight hauliers and business, would all need to be considered. Another Transport Partnership suggested that, where freight volumes are high on an individual route basis it might be feasible to provide dedicated freight services outside the CHFS contract. They suggested that Islay and Stornoway would appear to offer the greatest potential for this on the CHFS service.

In relation to fares, comments and suggestions included that:

• Consideration might be given to offering reduced freight rates on quieter sailings to encourage movement from busier sailings on to quieter ones. This already happens for the Stornoway freight service, and it seems inequitable to offer this attraction to hauliers on that route alone.
• Commercial fares should be reconfigured, so that they are aligned with RET principles; if commercial fares were brought in line with private vehicles pro-rata, CalMac could be given latitude to encourage commercial traffic to use spare capacity on low-demand services by offering further discounts.
• Fares policy is a key element of the Islands Connectivity Plan (the consultation on the Islands Connectivity Plan ran from 1 February 2024 to 3 May 2024), and this will include consideration of freight fares. There were calls to consider the wider operating environment for regional businesses over the past couple of years, including increased costs amid inflationary pressures, when developing that policy.

Finally, a Haulage industry representative body respondent suggested that working closely with the logistics sector, freight companies, industry associations, and other stakeholders to develop and implement strategies for managing demand on ferry routes could lead to more effective solutions that address the needs of all parties involved.