Cruise operator Fred Olsen has ceased trading with Thomas Cook after Euler Hermes withdrew insurance protection from some third-party suppliers last week.

Fred Olsen disclosed that it would not do business with any company where its money was not financially protected and planned to end its trading relationship with Thomas Cook with immediate effect.

Thomas Cook said in a statement: “Whilst we don’t disclose confidential terms with individual suppliers, we can confirm that we’ve not been able to reach agreement with Fred Olsen on new commercial arrangements.

“Therefore, from today, we will not be racking their products nor making new bookings with them through our network of 1,200 stores or via our call centres.”

Thomas Cook added that Fred Olsen represents only a small part of its UK business. The 170 year operator sells more third party holidays than any other UK travel retailer alongside its own tour operator products.

Thomas Cook reassured its customers who have already booked to travel on a Fred Olsen cruise that their holiday will continue as booked.

Fred Olsen is the first supplier to end its relationship with Thomas Cook since Euler Hermes announced its plans to stop credit insurance cover for third-party suppliers one week ago.