Americas News
Rising Bunker Prices Drive up Ferry Fares
BC Ferries will raise its fares on most routes by 3.5 percent this month to pay for rising diesel fuel costs, Canadian news service CBC News reports.
"We have waited as long as we can to implement a surcharge, however we must act now as it is clear that fuel prices are unlikely to decline in the foreseeable future," said CEO Mike Corrigan.
"We are well aware that implementing a fuel surcharge is unpopular with our customers, and we are doing everything we can to keep our fuel costs as low as possible, including building new ships with LNG [liquefied natural gas] capability."
Corrigan said BC Ferries has reduced its fuel use by 5.8 million litres since 2004, but its fuel costs still rose to CAD121 million ($114 million) from CAD50 million ($47 million) over that period
He added that every 1 percent increase in fuel prices adds CAD1.2 million ($1.1 million) to the company's expenses.
The company's costs for diesel hit a high for the year of CAD1.09 ($1.03) per litre in November.
"Market pricing indicates that the price differential will continue throughout the year," Corrigan said.
The company has said it will pay between $200 million and $300 million for three dual-fuel ferries capable of running on LNG, which it says will cost half the price of diesel, with the ships due to start service in 2015.
