The managing director of Celtic Link, the only ferry company licensed to carry cattle, says the link between Ireland and Europe could be at risk if the price of oil continues to increase.
This week the company has increased its charges on crossings from Rosslare to Cherbourg by 18% or €500. Paul Tyrell said the company's fuel costs had increased from €1.4m three years ago to €4.5m, and it had to offset this by increasing charges.
Mr Tyrell said the company's ferry, the Diplomat, burned up to 32 tonnes of fuel oil on a crossing. The price of a tonne had now risen from €145 three years ago to €435 today. This will see the cost for cattle exporters rising to nearly €3,500 per crossing.
Farmers are expecting that these charges will have an effect on cattle prices as export agents will cut their margins for cattle prices.
