The UK competition regulator has launched an investigation into a capacity sharing agreement between P&O Ferries and DFDS.

In May, the rival ferry operators entered a mutual space charter agreement on the Dover-Calais route in an effort to shorten freight customers’ waiting times.

The agreement was also intended to help improve the flow of traffic on the trade route between the UK and EU.

However, the Government's Competition and Markets Authority confirmed this morning (Friday) that it will now launch a probe into the move.

A statement from the watchdog said: "The CMA is investigating whether a capacity sharing agreement between two ferry operators, P&O Ferries Holdings Limited and DFDS A/S, on the Dover-Calais route has potential to prevent, restrict or distort competition within the UK."

The investigation is under Chapter I of the Competition Act 1998.

From now until March the CMA's work will involve information gathering, including the issuing of formal or informal information requests, and analysis and review of what has been found.

P&O Ferries operates five vessels on the Dover-Calais route while Denmark-based DFDS runs three.

In May, the firms said the agreement would be limited to freight traffic between Dover and Calais and would not extend to the Dover-Dunkirk route operated by DFDS.

It was to make lorry space available on each other's ships to help reduce waiting times for truckers after the economic effects of coronavirus.

Together, the firms carry more than 2.5 million lorries across the English Channel every year, making it by far the busiest trade route between the UK and Europe, the firms said.

P&O Ferries, after being contacted by KentOnline, said it would make no comment on the matter.

But a spokesman for DFDS said: "The CMA is investigating whether a capacity sharing agreement between two ferry operators, P&O Ferries Holdings Limited and DFDS A/S, on the Dover-Calais route has potential to prevent, restrict or distort competition within the UK.

"A cooperation between two competitors may always attract attention. We believe that the agreement will cut down waiting times for our customers and reduce queues in the ports.

"The CMA has not reached any conclusions at this stage as to whether or not competition law has been infringed and has an open mind at this point. We will of course cooperate with the CMA and provide all required documentation.”

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