Tue 29 Nov 2011 14:08

BC Ferries surcharge 'a bit suspicious'


Politician calls into question the validity of the new BC Ferries fuel surcharge hike.



The decision by Canada's BC Ferries to raise its surcharge next month has been questioned by a member of the local political party, B.C NDP.

Last week, BC Ferries announced that fuel surcharges on some routes will be adjusted on December 12th due to the rising cost of marine diesel fuel.

The fuel surcharge will rise from 2.5 per cent to 5 per cent on the three major routes connecting the Lower Mainland and Vancouver Island. A fuel surcharge of 2.5 per cent will be implemented on the Horseshoe Bay – Langdale route.

The fuel surcharge currently in place on the minor routes will remain unchanged at 5 percent. Currently there are no fuel surcharges on the Port Hardy – Prince Rupert and Prince Rupert – Haida Gwaii routes.

Gary Coons [pictured], B.C NDP deputy opposition critic for transportation and infrastructure, is quoted as saying that under legislation passed last year, "in my mind, (it’s) illegal to put in any fuel surcharges until October 2012."

The legislation in question suspended BC Ferries’ power to make "extraordinary price cap increases" to account for costs such as fuel.

"A lot of people are seeing this as a last-minute cash grab by BC Ferries to try and do something with their $20 million deficit," commented Coons.

Rising Fuel Costs

According to BC Ferries, its annual fuel costs have risen in recent years from $45.9 million in 2003 to $86.8 million in 2008.

The company's fuel costs for the 2008/09 period was calculated to be approximately $120 million and is forecast to be at similar levels this year. However, since 2003 the corporation is said to have reduced its fuel consumption by approximately 5 percent.

Questioning the timing of the surcharge hike, Coons said: "It’s just before Christmas, when people are trying to deal with travel and the cost of the December Christmas season. I think it’s a bit suspicious that this is happening now."

Preemraff Göteborg, Preem's wholly owned refinery in Gothenburg, Sweden. VARO Energy expands renewable portfolio with Preem acquisition  

All-cash transaction expected to complete in the latter half of 2025.

Pictured: Biofuel is supplied to NYK Line's Noshiro Maru. The vessel tested biofuel for Tohoku Electric Power in a landmark first for Japan. NYK trials biofuel in milestone coal carrier test  

Vessel is used to test biofuel for domestic utility company.

Pictured (from left): H-Line Shipping CEO Seo Myungdeuk and HJSC CEO Yoo Sang-cheol at the contract signing ceremony for the construction of an 18,000-cbm LNG bunkering vessel. H-Line Shipping orders LNG bunkering vessel  

Vessel with 18,000-cbm capacity to run on both LNG and MDO.

Stanley George, VPS Group Technical and Science Manager, VPS. How to engineer and manage green shipping fuels | Stanley George, VPS  

Effective management strategies and insights for evolving fuel use.

Sweden flag with water in background. Swedish government bans scrubber wastewater discharges  

Discharges from open-loop scrubbers to be prohibited in Swedish waters from July 2025.

The ME-LGIA test engine at MAN's Research Centre Copenhagen. MAN Energy Solutions achieves 100% load milestone for ammonia engine  

Latest tests validate fuel injection system throughout the entire load curve.

Terminal Aquaviário de Rio Grande (TERIG), operated by Transpetro. Petrobras secures ISCC EU RED certification for B24 biofuel blend at Rio Grande  

Blend consisting of 24% FAME is said to have been rigorously tested to meet international standards.

Avenir LNG logo on sea background. Stolt-Nielsen to fully control Avenir LNG with acquisition  

Share purchase agreement to buy all shares from Golar LNG and Aequitas.

Seaspan Energy's 7,600 cbm LNG bunkering vessel, s1067, built by Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. Bureau Veritas supports launch of CIMC SOE's LNG bunkering vessel  

Handover of Seaspan Energy's cutting-edge 7,600-cbm vessel completed.

The world's first methanol-fuelled container ship, Laura Maersk. Methanol as a marine fuel | Steve Bee, VPS  

How environmental legislation has driven the development of low-sulphur fuels and methanol-ready ships.


↑  Back to Top