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Son of a son of a ...

Fuel Surcharge ...

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Very likely is not going to happen unless the Middle East blows up.  However, just a reminder that this does exist so folks don't act surprised if a surcharge is ever imposed.  NCL surely has a hedged position on oil.  Prices would have to go above $65 per barrel and hold for a time before imposing a surcharge.  Further, I doubt NCL would alone impose a surcharge ... it would probably be industry-wide.

 

From the T&C:  "Norwegian Cruise Line reserves the right to charge a fuel supplement without prior notice should the closing price of West Texas Intermediate Fuel increase above $65 per barrel on the NYMEX (New York Mercantile Exchange Index). In the event a fuel supplement is charged, Norwegian Cruise Line will have sole discretion to apply the supplementary charge to both existing and new bookings, regardless of whether such bookings have been paid in full. Such supplementary charges are not included in the cruise fare. The fuel supplement charge will not exceed $10.00 per passenger per day."

 

Still below the red line:  https://markets.businessinsider.com/commodities/oil-price?type=wti

 

Hopefully, matters calm down in the Middle East.

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I recall there was a long period of time that oil was above their surcharge trigger and there were no surcharges. I'll bet they have that in the contract "just in case" of a sudden shock to the oil markets. Longer term, slow price rises can be accommodated in the regular fares.

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Even when gas prices were up near four bucks because of crude prices, a surcharge was never implemented.  I don't know if it has ever been done.  

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Cruise ships use a different fuel than gas, so while it's an indicator it's not a for sure thing. 

 

Cruise lines won't want to add another charge if other lines aren't doing the same unless they have to. NCL likely has some line (probably a combo of price point plus length of time at said price point) where over which they would start to charge the supplement. 

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This has been in their contract for several years.  When oil prices were around $100 a barrel, they didn't charge the supplement.  I don't think I would worry too much.  I guess it's possible but I don't think any cruise line wants to be the first to do it.

 

John

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The fuel surcharge was implemented when crude prices were quite volatile, and since then they have instituted fuel future contracts that dampen costs even more. There is also no direct correlation between marine fuel and crude prices. The fuel surcharge has not been charged since around 2005.

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On 9/16/2019 at 8:27 AM, Trimone said:

Do they give you any money back when the price falls?

No, they give you a free bucket of diesel fuel.  😂

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The fuel surcharge has not been charged since around 2005.

 

Not sure about NCL but RCCL definitely charged it on the last two cruises I took with them in late 2008 and spring 2009.

I know Carnival were charging it then as well.

I believe they all started dropping it in mid 2009 when oil finally settled around $60 a barrel

Edited by triptastic3

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