Fuel Surcharge

[ilm28411]

I want to know everyones thougths of a possible fuel surcharge since the price of oil is going up. What do you think Carnival Cruise lines will do?

[emtnmare]

Does it really matter?

[Perfect Stranger]

Why do people keep bringing this up? Do we really want to "remind" them? :rolleyes:

[big_duck]

Actually oil prices have started to drop again.

[*Mach*]

Actually oil prices have started to drop again.

 

 

At the shareholder's meeting going on right now they said that they had taken quite a hit to the bottom line due to fuel price increases... $483 million...

Wow...

:(

[zabnee]

They've also just said that they have no intention of reinstating the fuel surcharge. :)

[*Mach*]

It was just announced at the stockholder's meeting that under the current conditions, despite oil being well above $80/bbl, there is no plan to re-institute the fuel surcharge.

Good news for all of us!!

:D

[Ashpalo]

They just announced in the shareholder meeting that they have no intention of implementing the fuel charge anytime soon.

 

Ashley :)

 

 

Mach - you beat me to it! LOL

[zabnee]

It was just announced at the stockholder's meeting that under the current conditions, despite oil being well above $80/bbl, there is no plan to re-institute the fuel surcharge.

 

Good news for all of us!!

 

:D

 

 

Beat ya to it! ;)

[*Mach*]

Beat ya to it! ;)

 

 

Yeah... it's that darn job thing that keeps gettin' in the way!

Just kidding, of course! My job keeps me cruisin'!!

:D

 

[MrCo9]

Here's one way for Carnival to save fuel, rather than make Cozumel and Calica two separate stops on the western Caribbean sailings, just stay overnight in Cozumel. This would allow the passengers to see the fire show at the Blue Parrot, night scuba diving, go to Alux at sunset and other activities that those of us who stay in Playa Del Carmen get to do.

 

Where exactly do they go between Coz and Calica?

[elcuchio24]

Oil is not well over $80. It is a little over $80, at about $83 right now.

 

If they reinstate the surchage, are you not going to cruise because of it? Otherwise I would stop worrying about it.

[big_duck]

At the shareholder's meeting going on right now they said that they had taken quite a hit to the bottom line due to fuel price increases... $483 million...

 

Wow...

 

:(

 

Be that as it may, oil prices are dropping.

 

http://www.google.ca/finance?client=ob&q=NYSE:OIL

[*Mach*]

Oil is not well over $80. It is a little over $80, at about $83 right now.

 

If they reinstate the surchage, are you not going to cruise because of it? Otherwise I would stop worrying about it.

 

 

Not to be contrary but $83 is pretty well over $80 and it's WAY over the stated fuel surcharge trigger of $70.

I'm impressed that Carnival hasn't taken this option to bump up the profit margin...

Regarding the question of will it cause some folks to not cruise I think that it might. A family of five or six having to come up with an extra $350 or so might reconsider, I know it would make a difference to me. For a solo cruiser or a couple it's not much of a hit and probably won't make a lick of difference!

Just my $.02...

:)

[Kap Jack]

I am betting the reason they raised the rates for the summer was because of the increase in oil prices. It's better publicity to raise the rate then claim a fuel surcharge.

[*Mach*]

Be that as it may, oil prices are dropping.

 

http://www.google.ca/finance?client=ob&q=NYSE:OIL

 

 

Fortunately for all of us that's the case. I can't help but wonder how long this little decline is gonna last, though. I heard on Bloomberg just a day or two ago that the rise in the price of crude isn't because of OUR demand but the rise in demand in China and India...

:)

[*Mach*]

I am betting the reason they raised the rates for the summer was because of the increase in oil prices. It's better publicity to raise the rate then claim a fuel surcharge.

 

 

It's very possible that you're right.

During the shareholder's meeting they mentioned that the revenue from ticket prices has risen 26%!!

:eek:

[elcuchio24]

Not to be contrary but $83 is pretty well over $80 and it's WAY over the stated fuel surcharge trigger of $70.

 

I'm impressed that Carnival hasn't taken this option to bump up the profit margin...

 

Regarding the question of will it cause some folks to not cruise I think that it might. A family of five or six having to come up with an extra $350 or so might reconsider, I know it would make a difference to me. For a solo cruiser or a couple it's not much of a hit and probably won't make a lick of difference!

 

Just my $.02...

 

:)

 

Call me conspiracy McGee, but didn't carnival just announce that all it's rates where increasing? (at least for the summer)

Well.....Perhaps instead of tacking on the always unpopular 'fuel surchage' they just decided to raise prices across the board to recoup some of those fuel expenses...

 

The cruise line does not have access to fuel any cheaper than the rest of us. It's an added expense for them just like it is for the airlines, truckers, trains, etc. I still think cruising is the greatest vacation deal out there.

[Doug910]

The cruise line does not have access to fuel any cheaper than the rest of us. It's an added expense for them just like it is for the airlines, truckers, trains, etc.

 

...Um, well that's not exactly true. We can lump together transportation company (Airlines, cruise lines, truckers, trains) fuel buying habits in a different "tank" than the rest of us. When we buy fuel for our cars, whatever the price is at the pump is the price we're going to pay today. Companies that use fuel in high volume, purchase "futures" to try to regulate the price of their fuel. They usually purchase 4-6 months out. The fuel that went into their ships at their homeports this past Sunday was purchased last year. Conversely, the fuel that they are going to need in September 2010 is now selling at $87.50, exactly $4.00 more than todays price. Buying futures, no matter if it is deisel fuel, sugar or cocoa, is a highly specialized field, and I'm sure that Carnival, as well as all the other cruise lines, have employees dedicated to nothing else but that line of work.

[Bunkie103]

I don't know and I don't care because we're going anyway!;)

[elcuchio24]

...Um, well that's not exactly true. We can lump together transportation company (Airlines, cruise lines, truckers, trains) fuel buying habits in a different "tank" than the rest of us. When we buy fuel for our cars, whatever the price is at the pump is the price we're going to pay today. Companies that use fuel in high volume, purchase "futures" to try to regulate the price of their fuel. They usually purchase 4-6 months out. The fuel that went into their ships at their homeports this past Sunday was purchased last year. Conversely, the fuel that they are going to need in September 2010 is now selling at $87.50, exactly $4.00 more than todays price. Buying futures, no matter if it is deisel fuel, sugar or cocoa, is a highly specialized field, and I'm sure that Carnival, as well as all the other cruise lines, have employees dedicated to nothing else but that line of work.

 

I understand what 'futures' are as I do some comod trading:). My point was that these industries have had to deal with increased energy sector price increases as have we all. Sometimes futures end up being a bargain, sometimes not so much. If there are not fuel surcharges of fare increases, that increased operating expense will have to come off the bottom line, which is not a popular choice with stockholders........

[mrpayroll]

I don't know and I don't care because we're going anyway!;)

Same here...They have given us the warning that they can impliment the charge, so if they do, they do....No SHOCK....:rolleyes:

[kelz66]

there is a thread here today about the stockholders meeting where it was reported that they have no intention of implementing the fuel surcharge.

[elcuchio24]

there is a thread here today about the stockholders meeting where it was reported that they have no intention of implementing the fuel surcharge.

 

Then this thread is pointless, at least til next quarter:). Whataya say we put the old girl down?

[Bunkie103]

Same here...They have given us the warning that they can impliment the charge, so if they do, they do....No SHOCK....:rolleyes:

 

I already have the money put aside and if they don't implement it, then we have that much more to spend. Can you imagine telling two girls 13 and 10 "we can't go because of a fuel surcharge?":rolleyes: