The Steam Packet's CEO claims a rival freight ship operating out of Douglas could be a threat to their passenger services.

Mark Woodward says they use the money they make from transporting freight to subsidise the fares for the public, adding competition could damage that set-up.

The Ingerborg Pilot, which is owned by Mezeron, has been operating out of Ramsey for a few months now but has had to use Douglas Harbour sometimes because of bad weather and tides.

Some are also seeing it as a move by Mezeron to eventually run a freight service to and from the capital and directly compete with the Steam Packet.

Mr Woodward says they're keeping tabs on the situation.