Ferry Firm Responds to Rising Bunker Prices

Tuesday June 12, 2018

Canada's BC Ferries is the latest firm to respond to rising global bunker prices.

The operator today said on June 27, 2018 it would remove the fuel rebates currently in place "due to current world fuel market conditions."

"Over the past 14 years, we’ve had fuel surcharges, fuel rebates and periods with neither, depending on the market price of diesel fuel, so over the years it has basically been neutral for our customers," said Mark Collins, BC Ferries’ President and CEO.

"We know that the affordability of travel is important to our customers, and we use fuel deferral accounts and fuel hedging as tools to help reduce the impact that fluctuating fuel prices have on the cost of ferry travel."

Rising bunker prices recently prompted box carriers representing over 50% of the global capacity to announce emergency bunker surcharges, a move that has come under heavy criticism.

BC Ferries last week said it hopes its fuel costs "will be reduced by millions" by converting two vessels to use liquefied natural gas (LNG) bunkers.