Cruise fuel charges

I just got an e-mail from Vactions to Go an online travel agent for cruise lines. We all know that the price of gas has gone down.. thank goodness. I suspect.. there is the cynic in me... just in time for elections. The cruise industry had imposed a fuel surcharge to recoop some of the cost of the fuel increases. Now that it is down.. this industry is not taking any chances. Here is what is going on... hmmmmmm


The steep drop in the price of fuel has prompted most major cruise lines to make changes to their highly unpopular fuel surcharges. The new policies are convoluted, but I'll do my best to explain them.

Carnival, Costa, Cunard, Holland America, P&O, Princess and Seabourn have eliminated fuel surcharges for new bookings for 2010 departures, effective immediately.

The situation is considerably less cut-and-dried for 2008 and 2009 departures.

If the price of light sweet crude oil is $70 per barrel or less according to the New York Mercantile Exchange Index (NYMEX) at the 2:30 p.m. close of business on 25 consecutive trading days, ending five trading days prior to a cruise departure, fuel supplements paid by passengers on that sailing will be refunded in the form of onboard credits.

In other words, the price of oil must remain at $70 or less per barrel for 25 trading days in a row until five trading days before your cruise in order for you to receive that shipboard credit. Passengers who booked a 2010 cruise on these lines before October 31, 2008 will be charged a fuel supplement, but they will also be eligible for onboard credit under the same fuel price conditions applied to 2008 and 2009 departures.

Fortunately, this process will be automatic--passengers will not need to apply for the onboard credit or try to track the price of oil themselves. However, Carnival Corp., which owns and operates these cruise lines, has raised prices on all 2010 cruises to reflect the fact that even at $70 per barrel the price of fuel is significantly higher than in the past.

Royal Caribbean, Celebrity, Azamara and Norwegian will not apply fuel surcharges to bookings made on or after November 10, 2008 for sailings that depart on or after January 1, 2010. Fuel surcharges still apply to 2008 departures. For 2009 sailings, and for 2010 sailings booked before November 10, 2008, these lines may refund fuel surcharges as onboard credits. Refunds will be determined on a quarterly basis: If the price of West Texas Intermediate fuel is $65 or less at the close of the NYMEX, two weeks prior to the beginning of an upcoming calendar quarter, then onboard credits will be provided to all passengers on sailings that depart during that calendar quarter.

Still with me? Here's how it breaks down:

If the price per barrel is $65 or less on December 18, 2008, passengers departing between January 1 and March 31, 2009 will receive onboard credit.

If the price per barrel is $65 or less on March 18, 2009, passengers departing between April 1 and June 30, 2009 will receive onboard credit.

If the price per barrel is $65 or less on June 17, 2009, passengers departing between July 1 and September 30, 2009 will receive onboard credit.

If the price per barrel is $65 or less on September 17, 2009, passengers departing between October 1 and December 31, 2009 will receive onboard credit.

The same timeline and conditions apply to 2010 sailings booked prior to November 10, 2008. Again, the shipboard credits will be automatically provided.