Fuel Supplement

[Jerry and Shelly]

We are on the Sept 26 Solstice cruise. Has anyone lately had to pay a fuel supplement charge? According to our newspaper today, oil is currently at 76.51 and going up, and with the gulf crisis, I am afraid that we are eventully going to get hit with the extra charge.

[Gonzo70]

We are on the Sept 26 Solstice cruise. Has anyone lately had to pay a fuel supplement charge? According to our newspaper today, oil is currently at 76.51 and going up, and with the gulf crisis, I am afraid that we are eventully going to get hit with the extra charge.

 

Oil is relatively cheap right now. And it has gone down since the onset of the gulf crisis. Unless oil goes up to $90 or $100 in the near future, no need to worry about a fuel surcharge.

[lobster129]

Oil is relatively cheap right now. And it has gone down since the onset of the gulf crisis. Unless oil goes up to $90 or $100 in the near future, no need to worry about a fuel surcharge.

 

According to Celebrity's web site...it looks likely we WILL be paying the oil surcharge...to QUOTE the website:

 

"Celebrity Cruises reserves the right to impose a fuel supplement of up to $10 per guest per day on all guests if the price of West Texas Intermediate fuel exceeds $65.00 per barrel."

[alicam]

This oil surcharge thing is annoying...almost looks like people want to pay for something they don't want

[lvcruiser]

Please realize how that is worded: they "reserve" the right to impose the fuel supplement. That doesn't mean they will. WTI crude has been sitting at over $65/barrel for some time and no charges have been levied for quite a while. I have to agree with Gonzo70 - if it reaches $90-100, then we'll have something to worry about.

[DavidJrandRichard]

I fully expect for oil to quickly to go up next week with the new storm entering the Gulf of Mexico...tropical activity in the past resulted in higher fuel prices.

[Gonzo70]

According to Celebrity's web site...it looks likely we WILL be paying the oil surcharge...to QUOTE the website:

 

"Celebrity Cruises reserves the right to impose a fuel supplement of up to $10 per guest per day on all guests if the price of West Texas Intermediate fuel exceeds $65.00 per barrel."

 

Oil has been over $65 per barrel for nearly a year. It would be absolutely insane if Celebrity imposed a fuel surcharge because oil is in the $70s or $80s. That is the new norm for oil. A fuel surcharge is to offset a sudden spike in oil that occurs so fast the cruise line is not absorb the cost without taking a massive loss in profits. Again, if oil goes to the $90s in the next few months (or more likely ($100s) then we have something to talk about. Otherwise there is a near zero chance of a fuel surcharge.

[lvcruiser]

I fully expect for oil to quickly to go up next week with the new storm entering the Gulf of Mexico...tropical activity in the past resulted in higher fuel prices.

 

I fully expected oil and gasoline prices to skyrocket when the Deepwater Horizon blew up, since it seemed in the past that the oil and gas industry would use any excuse to make a price bump. My running joke for years has been that if a sequoia tree fell down in the Redwood National Forest, the price of gasoline would go up. But when the prices didn't increase after the explosion, I began wondering if the industry had finally realized they could no longer use excuses such as had been used in the past that really didn't impact their costs as much as they tried to make them sound simply because they are now the bad guys in the eyes of the entire world for creating the greatest environmental disaster on record, which it will be by the time they get it contained. I think the possibility still exists that a Gulf storm may impact the price, but not to the same extent it has in past years. I think the industry will be more cautious this year, at least, with their astronomical price hikes. How many Junes in past years do you remember the price of gas actually going down, rather than up?

[alicam]

Wouldin't these cruise companies have hedged their fuel prices?

[lobster129]

Please realize how that is worded: they "reserve" the right to impose the fuel supplement. That doesn't mean they will. WTI crude has been sitting at over $65/barrel for some time and no charges have been levied for quite a while. I have to agree with Gonzo70 - if it reaches $90-100, then we'll have something to worry about.

 

Gentlemen...you give me hope!:D While I will budget for the fuel surcharge, it sure would be nice to have the extra $$ for something I would enjoy more.

[maitlandmom]

I don't think they would be the first in the market to do it. I think Carnival would have to jump first. The Florida Attorney General's office jumps all over them when they levy any new "fees".

[Andy]

Wouldin't these cruise companies have hedged their fuel prices?

 

Hi Alicam !

 

I'm 99.9 % certain that Celebrity and Royal Caribbean hedges, and most every Cruise line does the same. It makes fiscal common sense, for them not to be fully exposed to any major price swings.

[cruisin'mama]

Do I remember correctly that if you are already booked, they won't add fuel charges to your booking?

[Gonzo70]

Do I remember correctly that if you are already booked' date=' they won't add fuel charges to your booking?[/quote']

 

No, that was an old policy. In 2009 they revised the language in the Cruise Contract so that they can levy fuel surcharges at any point in the reservation process (new reservation, deposited or fully paid). Again, unless oil shoots up significantly higher than the current levels, none of this will matter so I would not worry about it.

[Gonzo70]

Hi Alicam !

 

I'm 99.9 % certain that Celebrity and Royal Caribbean hedges, and most every Cruise line does the same. It makes fiscal common sense, for them not to be fully exposed to any major price swings.

 

Yes, you are correct. They do not hedge all of their fuel, but do hedge a significant amount.