Ladies and Gentlemen,
The year 2020 is another period in the last 4 years when the Swedish krone has fallen against the European currency. In the business model of Polferries ferry operator, based on the revenue side on passenger and cargo ticket prices calculated in Swedish krona, and on the cost side - mainly on the Euro currency, it becomes a big problem to achieve results allowing to operate with a balance of profits and losses. The depreciation of the krona against the Euro has continued since 2017 and averages at 9.85%. The period of pandemic did not help this situation, but only aggravated the problem. This state of affairs forces Polferries, still 10 months later than other shipowners, to implement mechanisms to secure the operation of the ferry service. In order to partially compensate for the losses incurred by the Company, we decided to introduce a CAF (currency adjustment factor) surcharge to the "Cargo Tariff", effective 1 February 2021, compensating for the low exchange rate of the Swedish krona against the Euro.
A 3.2% depreciation of the exchange rate was adopted in order to create a compensation mechanism, which represents only 1/3 of SEK's fall against Euro in recent years, while the remaining 2/3 will remain on the cost side of Polferries. With regard to the reference freight rate, this corresponds to a difference of SEK 5.0 per meter of a vehicle on the Świnoujście – Ystad line and SEK 8.0 per meter of a vehicle on the Gdańsk – Nynäshamn line. The established algorithm will take into account the change in the value of the krona in relation to the Euro in intervals of 0.10 SEK, causing a correction of the CAF surcharge by SEK 1.0 per meter of a vehicle on the Świnoujście – Ystad line and SEK 1.6 per meter of a vehicle on the Gdańsk – Nynäshamn line. The basis for the adjustment of the surcharge will be the average of monthly SEK and Euro exchange rates for the last 12 months, published by Narodowy Bank Polski. Each time the change in the value of the CAF surcharge will be preceded by an announcement on this matter. The CAF will be revoked when the weighted average exchange rate for the last 12 months falls below 10.10 EUR/SEK.
At the same time we would like to inform that beginning from 01.01.2021, the LSS environmental surcharge will be permanently included in the freight rates.
|List of average monthly EUR/SEK exchange rates published by the NBP for the last 12 months
Date of update: December 2020.