Color Line has decided to lay up a ropax ferry connecting Norway and Germany.
The decision by the Norwegian ferry owner will idle the 1,928-passenger ferry Color Magic (built 2007) with immediate effect.
The vessel operates on a service between Oslo and Kiel.
The decision comes as the Norwegian government is introducing new and tougher regulations against Covid-19, and it means that another 500 of the company's employees are being furloughed.
In October, Color Line laid up its other ferry on the route, the 2,750-passenger Color Fantasy (built 2004).
The company has a total staff of 2,100, and 1,500 of them are now on furlough.
Company chief executive Trond Kleivdal said the furloughs will be terminated on short notice, as soon as soon as authorities permit passenger traffic linking Norway, Sweden, Denmark and Germany.
Color Line continues its cargo operations with 12,200-gt Color Carrie (built 1998) between Oslo and Kiel and between Kristiansand, Larvik and Hirtshals, with the 37,000-gt SuperSpeed 1 and the 34,000-gt SuperSpeed 2 (both built 2008).
Last week, several staff members tested positive for coronavirus, and some sailings were cancelled, but Color Line said it now has full control of the outbreak.
Controlled by Olav Nils Sunde, Color Line describes itself as Norway's largest line for international goods and passenger transport. It carried 900,000 cars and about 180,000 trailers per year at pre-pandemic levels.
Eric Martin contributed to this story.