Tue 29 Nov 2011, 14:08 GMT

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."


Monjasa Oil & Shipping Trainee (MOST) trainees. Monjasa opens applications for global trainee programme  

Marine fuel supplier seeks candidates for MOST scheme spanning offices from Singapore to New York.

Singapore's first fully electric harbour tug. Singapore's first fully electric tug completes commissioning ahead of April deployment  

PaxOcean and ABB’s 50-tonne bollard-pull vessel represents an early step in harbour craft electrification.

Fuel for thought: Hydrogen report cover. Lloyd's Register report examines hydrogen's potential and challenges for decarbonisation  

Classification society highlights fuel's promise alongside safety, infrastructure, and cost barriers limiting maritime adoption.

Bureau Veritas and Straits Bio-LNG sign MoU. BV Malaysia partners with Straits Bio-LNG on sustainable biomethane certification  

MoU aims to establish ISCC EU-certified biomethane production and liquefaction facility in strategic alliance.

Molgas Energy logo. Molgas becomes non-clearing member at European Energy Exchange  

Spanish energy company joins EEX as it expands European operations and strengthens shipper role.

Yiannis Diamandopoulos, Elinoil. Diamandopoulos appointed CEO of Elinoil as Aligizakis becomes chairman  

Greek marine lube supplier announces leadership changes following board meeting on 5 January.

Sustainable Marine Fuel Services webinar hosted by BV graphic. Bureau Veritas to host webinar on sustainable marine fuel transition challenges  

Classification society to address regulatory compliance, market trends, and investment strategies in February online event.

Inchcape Shipping Services logo. Inchcape to provide bunkering services from new Indonesian offices  

Port agency establishes presence in key bulk and tanker operation hubs handling 150 calls annually.

CPN launch of B100 marine biodiesel supply in Hong Kong graphic. Chimbusco Pan Nation launches B100 biodiesel supply in Hong Kong  

Bunker tanker Guo Si becomes Hong Kong's first Type II certified vessel for pure biodiesel operations.

Vox Apolonia vessel. Van Oord completes Dutch beach replenishment using 100% bio-LNG  

Dredger Vox Apolonia deposited 1 million cbm of sand at Noord-Beveland beach under Coastline Care programme.





 Recommended