Oil hits $70 BBL

As of close of business today, the price of oil on the NYMEX closed at
$70.01 per bbl.

Technically, when that price point is reached, many cruise lines have the
legal right to re-impose fuel surcharges.

Will they? Won't they? If so, how much?

It is going to be interesting to see how they handle this.


--
George Leppla http://www.CruiseMaster.com

Cruise Specials Weblog http://cruisemaster.typepad.com/my_weblog/

September 19, 2009 Carnival Glory http://www.cruisemaster.com/glory.htm
January 10, 2009 Southern Caribbean
http://www.cruisemaster.com/caribprin.htm
October 16, 2010 OASIS http://www.motherofallgroupcruises.com

On 6/10/09 12:34 AM, in article , "George
Leppla" wrote:

As of close of business today, the price of oil on the NYMEX closed at
$70.01 per bbl.

Technically, when that price point is reached, many cruise lines have the
legal right to re-impose fuel surcharges.

Will they? Won't they? If so, how much?

It is going to be interesting to see how they handle this.

The HAL contract provides that HAL may increase the cruise price if fuel or
other expenses exceed the amounts projected when the original price was
determined, but that the customer may then cancel the cruise and receive a
full refund. The significance of the $70 per barrel reservation must be that
the Carnival companies have the right to impose a fuel surcharge without an
opt-out for the passenger.

[Default] Thus spake "George Leppla" :

As of close of business today, the price of oil on the NYMEX closed at
$70.01 per bbl.

Technically, when that price point is reached, many cruise lines have the
legal right to re-impose fuel surcharges.

Will they? Won't they? If so, how much?

It is going to be interesting to see how they handle this.

The Royal Caribbean press release said that if the price went over
$65/bbl, the supplements would be applies in accordance with the
previously announced schedule. Which was based on the closing price
two weeks before the beginning of the next calendar quarter. ie, June
17th for the 3rd quarter and September 17th for the 4th.

WTI closed down .64 on Friday and some analysts were saying that
profit taking might ensue over the next week or so.
--

- dillon I am not invalid

"Gee, Jimmy,I'm sorry to hear that your girlfriend
turned out to be a Cylon."
-Special Agent Tim McGee, "NCIS"

Even though I have personally noticed lower prices at the gas pump, George
is correct... cruise line can implement their fuel surcharge again,
basically, if the price of oil is $70+ a barrel. At the recent Carnival FAM
(Fun Weekend), they talked quite extensively about their "Early Saver
Program," which are guaranteed to be the lowers prices available anywhere.
However, that does not necessarily protect one should this fuel surcharge
needs to be implemented again. The bottom line is, if the cruise lines need
to add this once again, we are all going to pay for it.

Smooth sailing to all...
John