Contracted Sailings

BC Ferries’ Coastal Ferry Services Contract with the Province defines Core Service levels as the number of round trips and the number of hours during which departures occurred, as specified in the 2002/03 published schedule, for each of its 25 ferry routes.

In return, the company receives from the Province an annual service fee to a maximum of $91,851,000. The service fee is paid on a per-sailing basis on 22 of the ferry routes; the remaining 3 routes (called the major route group) are self-supporting and receive no service fee.

In the year ending March 31 2005 (FY2004/5), BC Ferries reported receiving 99.98% of the maximum service fee, i.e. $17,000 less than the maximum, for all routes, indicating that BC Ferries substantially met its service obligations in that year.

You will find more detail in the Commission’s route-by-route analysis of sailing cancellations and the reasons for them, with commentary and observations.

You will also find the Commission’s observations on the year-to-year changes in traffic on the route groups and their financial performance.

Temporary Service Disruptions and Force Majeure

Note that the contract lets BC Ferries miss some sailings without penalty. There is an allowance of 20 consecutive days and/or a cumulative total of 30 days each calendar year for temporary service disruptions due to:

  • vessel or dock breakdown or mechanical failure
  • situations that compromise safety
  • tasking of vessels for emergency response
  • bad weather
  • maintenance to vessels or docks
  • sinking or grounding of vessels
  • fire
  • labour disputes, except lock-outs initiated by BC Ferries.

    • In the case of service disruptions caused by an event of force majeure (i.e. beyond BC Ferries’ reasonable control and not its fault - see list below), BC Ferries is not liable to the Province for failing to perform its obligations. Nevertheless if the event of force majeure is likely to reduce service below core service levels, BC Ferries is obligated to act to resume service with the least possible delay.  Events of force majeure specifically exclude “lack of money, financing or credit” but include:

  • acts of God
  • changes in federal laws
  • governmental restrictions on imports, exports or foreign exchange
  • wars, fires, floods and storms
  • strikes (including illegal work stoppages or slowdowns
  • lockouts (other than lockouts initiated by BC Ferries in compliance with the BC labour code)
  • freight embargoes and power failures.
     
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