Isle of Man company, Mezeron, has announced the end of its daily freight service between Liverpool and Douglas.
The service was direct competition for the Steam Packet, which operates from Liverpool, Heysham and Birkenhead.
Jorg Vanselow from Mezeron said: "The project was always ambitious and I make no apology for that. Unfortunately we did not see the volume growth expected to continue the service profitably."
Mezeron's freight service was launched in October 2010.
The Steam Packet Company said it was forced to increase ferry passenger prices to make up for losing 15% of its freight business to Mezeron.
Mezeron will continue services between Glassan Dock and Belfast carrying general cargo and containers.
Ramsey-based Mezeron's last sailing from Liverpool is due to arrive in Douglas on 19 February.