The crash in the price of oil will have all manner of
economic repercussions, and one would think, keep
liveaboard prices down. But long time Undercurrent correspondent
Mel McCombie (New Haven CT) writes
" I have two trips coming up (February--Caribbean
Explorer, St. Maarten--St. Kitts) and April (Provo.)
Both are charging a $200 fuel surcharge. I could see this
a year ago, but now?"
Airlines often buy their fuel years in advance, so cannot
always respond so quickly to a sudden drop in oil
prices. However, this should not be the same for liveaboard
operators, who are more likely to buy fuel when
it's needed. The international price for marine diesel
tends to be the same everywhere unless it is subsidized
(as it is in Egypt), although some areas of operation
may mean vessels need to pay local taxes, which can
escalate the price. However, a surcharge implies an
additional cost in respect of extenuating circumstances
so Undercurrent took a straw poll of vessel operators elsewhere
in the world.
These were typical responses:
Mike Ball of Mike Ball Dive Expeditions in Australia
said, "Our standard expeditions have been free of fuel
surcharge for about eight years. We do 2 or 3 exploratory
expeditions that involve significant extra travelling
that we list as $44 dollars subject to change. It's a joke
that operators charge a generic fuel surcharge while
fuel costs are down."
Alexander Bryant of Constellation Ventures in the
Maldives told us, "We have fuel surcharges for special
trips where we have to buy fuel outside of Male, so that
includes all trips to far southern atolls."
Frank van de Linde of the Siren Fleet (Dive & Sail
Worldwide) was jocular. "Regarding fuel surcharge, no
we don't do that kind of stuff. We have never done and
will never do either -- unless it's maybe above US$200 a
barrel. However when it's reaching that price, both you
and I will not be in the diving industry anymore."
Alan at Undersea Hunter fleet (Costa Rica) responded,
"Do we add any fuel surcharges? No, we do not,
especially as fuel prices are quite low right now. If in
the future fuel prices skyrocket, then we might need to
charge it, but let's hope that does not happen."
We suggest readers check the price of a trip when
they book it and query why there would be an additional
cost in the form of a fuel surcharge if one is added.
Clay McCardell of Explorer Ventures, the operator
of the vessels booked by Mel McCombie, tells us, "Fuel
cost is a difficult issue, since it is often our largest single
expense and is highly variable. When we budget operational
costs, we can plan on fairly predictable increases
in most of our costs, but fuel is a wild card. Instead of
charging a higher package price across the board, we
set our package prices based on an average fuel budget
for the year, and then use the flexibility of the fuel surcharge
in order to try and meet that budget. That helps
us to guarantee reasonable package pricing a minimum
of 12 months in advance (often longer), with the understanding
that the surcharge can and will vary depending
on local fuel costs up until 30 days prior to the trip."
He continued, "If oil prices remain stable and the
Caribbean catches up with the USA, I'd anticipate a
reduction of the fuel surcharge to zero soon."