I am writing this post not because I have heard actual news of the return of fuel surcharges but because I want to inform you all of the inevitability of their return. Some of you newer cruisers (or cruisers who have taken a break) may not know anything about fuel surcharges. No worries, I will explain.
A couple of years ago when the price of oil first spiked the cruise lines scrambled for a way to defray the costs of getting cruisers from port to port. The solution they came up with was something called a fuel surcharge. What this meant to us cruisers was we had to pay a fee to the cruise lines to cruise. This fee went to the cost of filling up the ships tanks. In short cruisers paid to fill up the ship’s gas tanks.
This was a temporary thing. I felt the sting of the fuel surcharge one cruise but after that it disappeared. The price of a barrel of oil dropped and (surprisingly) the cruise lines rescinded the surcharge. However, there were provisions made in the cruise line policies that gave them the right to reinstate the fuel surcharges in the event that the price of a barrel of oil once again surpassed a certain threshold.
Needless to say those thresholds were surpassed long ago all without the cruise lines reinstating the fuel surcharge. The problem is with the price of a barrel of oil now well over the 100 dollar mark on the New York Mercantile Exchange you almost can’t blame the cruise lines if they were to reinstate the fuel surcharge.
While this isn’t something that any of us wants to think about it is a reality that we may soon need to deal with. The reason I am writing this is to get you thinking (if you haven’t already started) about its financial impact. The last time these surcharges were instituted we were given a 90 day amnesty window, those sailing on cruises further out than those 90 days were made to pay the surcharge. Mine amounted to about 5 dollars per day per passenger.
Now, late last year the cruise lines hinted that future fuel prices were going to be built into the price of the cruise but that was when the price was in the 80-90 dollar range. Right now we are at 105 dollars per barrel with the arrow pointing up. Cruise execs are now put in a position of would passengers rather pay a higher up front cost that includes a fuel surcharge or a lower price but an additional charge tacked on top of the price you pay to board the ship.
How do you feel about a possible return of the fuel surcharge?