Less than a month after it resumed sailing, the Clipper has suspended operations due to low ridership, the surge of the COVID-19 Delta variant, and the added barrier of COVID testing for entry into Canada.
Clipper chief executive David Gudgel said the ridership just wasn’t there to support the vessel’s re-launch schedule.
He said there had been a decent amount of response in early September, but bookings dried up after the Thanksgiving long weekend.
“Our goal here was never to try and make back our losses, we just wanted to break even on operating costs,” he said. “This was about putting our crews to work and get the service re-established and work out the kinks in operation.”
The Clipper V passenger ferry, which runs between Victoria and Seattle, made its first sailing since March 2020 on Sept. 17.
With the U.S. marine border closed to Canadians, the plan was to operate four days a week over weekends.
Gudgel said with the ridership could not cover the cost of fuel, labour and port fees.
“We need to make sure this company is strong going forward and able to launch again when there really is an opportunity to do something,” he said.
The big question is how to hold onto many of the company’s highly trained staff, who will now have to find new jobs or file for unemployment benefits again.
“At this point I don’t know [if we can keep them], it’s a big risk for us and my biggest concern,” he said, noting U.S. federal COVID unemployment benefits for many ran out on Sept. 3. “That’s why we were so relieved to be able to restart.”
Gudgel said the company knew it would be a challenging restart given it was re-launching in shoulder season while another COVID wave was sweeping North America.
He noted the requirement for a negative COVID test prior to arrival into Canada proved to be a significant barrier for many of passengers.
Passengers also had to be fully vaccinated at least 14 days prior to arriving in Canada, provide proof of vaccination and submit travel information via the ArriveCAN web portal within 72 hours of arrival.
Destination Greater Victoria chief executive Paul Nursey called the suspension of the passenger ferry service disappointing but understandable.
“We were really holding our powder dry on re-entering the U.S. market until next spring, ourselves,” he said of his organization’s marketing efforts to draw tourists to the Island. “We wanted to see what the effect of PCR [COVID] tests would be and how much of a barrier they would be — and it seems they are very much a barrier to Canada from the U.S.”
Ryan Burles, president of Black Ball, which operates the Coho car ferry between Victoria and Port Angeles in Washington, said he understands Clipper’s position, noting his own company has been weighing the pros and cons of starting up while the U.S. marine border remains closed to Canadians.
“I feel for them because they tried their best and obviously it wasn’t going to work,” he said. “I give them all the credit for attempting it to start the business again and keep their people working.”
Burles said Black Ball would like to run this fall to be able to cater to the snowbird crowd and take advantage of the usually strong Christmas business, but if that doesn’t come to pass it’s likely their ferry service won’t be back until the spring.
Gudgel said its German-based parent company, FRS, is committed to the Victoria-Seattle service. The company operates a fleet of 74 vessels in eight countries.
“We are the second largest revenue producer in the portfolio. It’s a big deal not to have us running,” he said.
Passengers with Clipper bookings will be offered a refund or discounted travel credit for when service returns in 2022.
