Fuel Rebate Allowance

[Cruise Meister]

OK,

 

We CC members have.been setting aside our Lbs. Yens. $, Euros, etc for the "infamous" fuel surchage.... oh...$10 day

 

 

Makes sense @$140 barrel.

 

OIL is under $90 barrel

 

RCL: Are we gettin a rebate on our "Fuel Surcharge"...or,,, a reduction???

 

Like to know

[expat67]

Certainly hope so, especially at the rates they're selling off the cruise I'm about to go on.

[Peregrina651]

Don't hold your breathe. The fuel surcharge has to with how much the CL is paying for fuel and not the current cost of a barrel of oil.

[jt1120]

Plus, now they know that we'll pay it, why drop it?

[737NG]

Paid thousands to go on a cruise but complain about $150 fuel surcharge. What keeps cruising partially cheap is competition. Companies who can't stay profitable will go away leaving less choices. Is that what everyone wants? Sure oil may be down now but it can quickly go right back up as it probably will.

[kittyluvrnurse]

I'd rather not bankrupt a cruise company in economic times like this by asking for $300 back. I'd rather have the guarantee they'll be running by the time my next cruise comes along.

[expat67]

They've had no problem raising the surcharge has prices rose, just like to see them cut back on them as they retreat. Many airlines are now doing this.

[dutchess43]

Oil is trading at 80.00 right now we realize that they are not going to totally get rid of the fuel surcharge but it should be rolled back a bit.

[Brad1185]

Its too much money for them. I dont think you will ever see it reduced only increased.

[Silver sailor]

Paid thousands to go on a cruise but complain about $150 fuel surcharge. What keeps cruising partially cheap is competition. Companies who can't stay profitable will go away leaving less choices. Is that what everyone wants? Sure oil may be down now but it can quickly go right back up as it probably will.

 

Not complaining about the cost just the usual corporate greed

Cruise lines were quick to increase the fuel charges as the price of oil increased As of today a barrell is the lowest price in over a year Is it unreasonable to expect the fuel charge to be decreased?

Air lines have adeed "fuel surcharges" instituted fees for checked bags aisle seats etc because of "increased fuel cost" Will these various charges be decreaed or eliminated ??

[Tinwoman]

I wish someone could provide a break down of just how the price of a barrel of oil effects the cruise line.

I know that when I refuel at a station for my car it goes up and then down according to oil prices.

BTW what kind of fuel do cruise ships use? I have no idea.

[Gonzo70]

I wish someone could provide a break down of just how the price of a barrel of oil effects the cruise line.

I know that when I refuel at a station for my car it goes up and then down according to oil prices.

BTW what kind of fuel do cruise ships use? I have no idea.

 

I believe they use "bunker fuel." The break down is someone complicated as the cruise lines "hedge" various amounts of their fuel cost (i.e. lock in a specific price at a specific moment in time for future use). That said, the cost of oil does have a very significant impact on the cruise line's profits (both direct cost of fuel as well as indirect costs such as the impact high oil has on food costs). Unfortunately oil prices coming down due to a global financial crisis is an out of the frying pan into the fire type of situation. A few months ago the cruise lines were struggling because of fuel price, now they are struggling because they will have difficulty filling their ships at reasonable prices as well as having people spend significant amounts of money once on board due to the global financial crisis.

[cruzmaven]

Carnival Corporation announced today they are dropping the fuel surcharge. :D

 

That's the good news.

 

The bad news is that they are raising prices.:mad:

 

Either way, we're paying whatever they think they can get away with.

[Tinwoman]

I believe they use "bunker fuel." The break down is someone complicated as the cruise lines "hedge" various amounts of their fuel cost (i.e. lock in a specific price at a specific moment in time for future use). That said, the cost of oil does have a very significant impact on the cruise line's profits (both direct cost of fuel as well as indirect costs such as the impact high oil has on food costs). Unfortunately oil prices coming down due to a global financial crisis is an out of the frying pan into the fire type of situation. A few months ago the cruise lines were struggling because of fuel price, now they are struggling because they will have difficulty filling their ships at reasonable prices as well as having people spend significant amounts of money once on board due to the global financial crisis.

 

I don't know what bunker fuel is, is that gasoline, diesel, coal or what?

[Gonzo70]

I don't know what bunker fuel is, is that gasoline, diesel, coal or what?

 

I don't know a whole lot about it; it does come from oil, but it is like the "remnants" of what is left after the oil is refined into diesel, kerosene, gasoline etc.

 

Your best bet is to try to google it. There is a wealth of information, but much of it is rather technical and I don't have enough knowledge to put it into simple terms.

 

It is significantly cheaper than a gallon of fuel used for automobiles, but it also is a lot less clean.

[Tinwoman]

I don't know a whole lot about it; it does come from oil, but it is like the "remnants" of what is left after the oil is refined into diesel, kerosene, gasoline etc.

 

Your best bet is to try to google it. There is a wealth of information, but much of it is rather technical and I don't have enough knowledge to put it into simple terms.

 

It is significantly cheaper than a gallon of fuel used for automobiles, but it also is a lot less clean.

 

"Remnant

 

If it is cheaper then gasoline, why are they charging us a fuel supplement?

[ladysail2]

Origin of Bunker Fuel

 

The origin of the bunker fuel being considered is crude oil. When crude oil is subjected to refining, the lighter fractions (gasoline, kerosene, diesel, etc.) are removed by distillation. The heaviest materials in crude petroleum are not distilled - the boiling points are too high to be conveniently recovered. These materials (asphaltenes, waxes, very large molecules, etc.) carry through refining and become residual oil (or resid). During various operations in the refinery (principally heating at high temperatures), rearrangement of molecules may take place forming even larger molecular materials that have still higher boiling points. These materials also become part of the resid. Finally, any contaminants in the crude will not be distilled from the crude and will also be in the resid. This includes any salts (chemical elements that are typically soluble in water), sediment (oil-wetted solids), and the heavy organic molecules from various sources. Just as salt water leaves a residue of salt behind when it evaporates, so too does the refining process leave solids behind when the lighter materials are removed. Before selling resid as bunker fuel, a refiner will very often dilute it to meet various sales specifications for trace metals, sulfur and/or viscosity.

 

The bottom line is...bunker fuel comes from crude oil.....when the price of crude oil goes up...so does everything made from it.....even the lowly bunker fuel.

Now, I understand the expression.....'the ship is being bunkered'...never knew what that meant before.

[FLJudi]

If Celebrity doesn't want to refund the extra fuel charge, maybe they would consider other options - on board credit, free wine, free dinners in specialty restaurants, free bottled water, etc. I'd be a happier customer with just a few perks.

[brichar499]

...or maybe just read the papers that crude is at $79 and dropping. I would hope other lines-including X-follow suit. Yes, I have agreed to pay the rate quoted a month ago, but surely an on board credit equal to the amount of the surcharge is more than fair to all.

[rustyztwo]

While none of us wants to pay more and every individual is hurting from this historically awful economy, X is having equal or worse pains. Ridership is dropping and will continue to drop as jobs are lost and vacations are cancelled. RCL stock was trading yesterday at 13, down from 40 within the last year. And the price they paid for fuel is still elevated - from what I've read on the boards, they first added the fuel surcharge when oil was about the same cost. Keep in mind, they buy in bulk at a set price which is still much higher than where it dropped in the last two weeks.

 

I consider the fuel charge part of the total cost of the cruise, much like I look at an airline ticket cost including all the taxes and surcharges. Now considering how much X is hurting right now, why would you expect them to return money to paid passengers? It just doesn't make sense. Going forward, I expect X to follow suit with Carnival and just absorb the "fuel surchage" into the cruise cost and eliminate it as a separate line item.

[737NG]

It's funny how people would pay a slightly higher fare but they complain about a fuel surcharge when at the end it equals out to be the same.

 

All you have to do is look at the stock prices for the cruise companies and you can see how bad they are financially. Then on top of it they should give out on board credit because oil has swung down for the moment??? People here have had it to good for to long. Cheap airline and cruise fares over the years have done nothing but give people the idea that "that's the way it should be and I'm not paying a cent more" attitude. Times are changing either you will have to accept it or not.

[Napi's Mom]

Oil is trading at 80.00 right now we realize that they are not going to totally get rid of the fuel surcharge but it should be rolled back a bit.

Well have you noticed that it has gone back at the gas station.... SOMEWHAT... but not the same as the difference between $149-$80 a barrel!!! So I doubt that it will make as much difference here either! We paid only 5$ as we reserved early last yr. But I can see how you that paid $10 might be thinking you are owed a reduction! If only we all got what we deserved:eek:

[rustyztwo]

Well have you noticed that it has gone back at the gas station.... SOMEWHAT... but not the same as the difference between $149-$80 a barrel!!! So I doubt that it will make as much difference here either! We paid only 5$ as we reserved early last yr. But I can see how you that paid $10 might be thinking you are owed a reduction! If only we all got what we deserved:eek:

 

Keep in mind the cruise ships added the fuel charge when it was about $80 a barrel. Oil went up to $149 over the last year and now has gone back down to that $80 level which is where the cruiselines first asked for help. Yada yada yada, they told me the $10pp per day charge was part of what I was paying so it's not a surprise.

 

I'm sure we'd all like them to not only rescind the oil charge but to give us lots of freebies too! It's human nature. It's also not going happen very often.

[ginagirl]

Let's not forget that the cruise lines instituted the fuel surcharges in several increments. So why not lower them in the same fashion???? Why must "the cow jump over the moon" before we see any savings?:D

[bobbyleduck]

Don't expect the cruiselines, airlines, or any of the other businesses in the travel and leisure industry to make any concessions to the reduction in energy costs, or the downturn in the economy. Take a look at the past, and you'll see that they'll continue to squeeze us as long as they can, and then, just like the banks and investment banks now, they'll go bankrupt and be gobbled up by the strongest companies. When this recession/depression is over, I believe there will be a few less cruiselines, airlines and hotel chains around. Some might want to call it natural selection, but I just call it really bad business practices.

 

Happy cruising to all!

 

Bob