LD Lines is axing its Dover-Boulogne passenger ferry service less than two years after its launch.

Over-capacity and low fares on the cross-Channel route have been blamed for the decision which takes effect from September 5.

The service was given a Champagne launch in February last year, receiving a warm welcome for reviving direct links with the attractive French port that had previously been served by SpeedFerries before its financial collapse.

LD Lines, owned by the Louis Dreyfus Armateurs Group, a leading French shipowner with more than 100 years' experience in the shipping industry, has faced tough competition from bigger rivals on the Dover to Calais route.

It also launched in the teeth of recession, and has since been affected by a vicious cross-Channel price war.

Managing director Christophe Santoni said he was disappointed.

"A return to profitability can only be achieved for the ferry industry by adjusting supply to demand, increasing prices and market consolidation," he said.

"Whilst there remains huge over capacity on the Dover Strait, we are addressing this issue now by looking to see if such a revamped service is economically sustainable, despite a continually difficult trading climate."

The company is looking at the possibility of maintaining a freight-only ferry service on the route.

LD Lines' three other cross channel ferry routes Portsmouth to Le Havre, Newhaven to Dieppe and Ramsgate to Ostend, will continue to operate its advertised service.

P&O recently revealed it was looking to reduce jobs after a decline in business on the Dover-Calais route.