A second cross-Channel ferry company has warned there could be a job losses as the industry faces some tough economic times.

The warning, from LD Lines, which operates between Dover and Boulogne, follows the announcement by P&O Ferries to its staff that there's "serious concern" about its performance.

The firm, which employs around 2,000 people in Dover, has blamed competition from Eurotunnel and tough market conditions.

In a memo to staff, chief executive Helen Deeble said: "Trading remains tough right around the business.

"Our industry is still in the grip of strong recessionary pressures and our belief is that it is going to take a very long time before things return to normal.

"As a result, all of our sectors are struggling at present."

Staff were warned this was due to strong competition which is hitting P&O's business hard.

The memo added: "This attack, in the form of a price war, emanates primarily from Eurotunnel which has slashed its freight rates to win back the market share it lost to us after the tunnel fire in the autumn of 2008.

"This has cost us a loss of freight volume and a significant downturn in revenues due to the lower prices we are having to charge our customers.

"At the same time, Eurotunnel and ferry competitors are piling on more pressure with weekend promotions that have further depressed freight rates and we have been forced to fight back with special freight deals of our own.

"The squeeze also applies to our Short Sea tourist business where ferry competitors with lower costs than ours are constantly reducing their prices.

"This all means we are being forced to reduce costs throughout the business in order to be able to compete.

"It is therefore important I highlight to you at the earliest opportunity that our current performance is of serious concern and that it is going to require urgent attention.

"We have also started to communicate these messages to the European Works Council and to the trades unions representing members of our workforce.

"The board is currently considering all of its options. No decisions have yet been taken but we will have completed our assessment in time for the preparation of next year’s budget in the early autumn.

"We will keep you informed accordingly."

A spokesman for LD Lines said that like all other ferry operators on the Dover Strait, the company is experiencing a very depressed market, tough trading environment and the aggressive pricing policy from Eurotunnel, all affecting volumes.

"The market needs to rectify supply and demand balance to have a chance of becoming profitable again and ensure long term survival of the ferry industry, particularly across the Dover Strait," said the spokesman.

"We have options to retain the two vessels Norman Bridge and Norman Trader which must be declared by August 15.

"At this stage we have not yet exercised these options, hence the communication of Navitaship. The company has not yet decided and there is a possibility we will exercise an option for at least one of these ships. We are also considering alternative tonnage on the Dover – Boulogne service, which may not include Norman Bridge and Norman Trader.

"We are currently assessing all possible options and we expect to able to complete and announce our plan going forward from the middle of this month."

The spokesman stressed tghat no decisions had yet been taken pending ongoing review of the various options.