Fred Olsen clarifies position on fuel charges

Fred Olsen Cruise Lines has sought to clarify its position on extra charges to cover rising fuel costs.

The line outlined two levels of additional costs being imposed on passengers due to the “significant impact” of the increasing cost of oil. Passengers face a fuel cost supplement of 5.5% of the cruise rate paid in addition to a fuel surcharge of 4.5%.

Fred Olsen switched its fuel cost charging structure from a ‘per person, per night’ charge to a ‘percentage of fare’ fee from January 19.
This applies to bookings made on departures in the company’s 2011/12 worldwide second edition brochure, with the exception of Black Watch’s 2012 world cruise and Balmoral’s Around South America cruise.

“In the event that the price of Brent crude oil falls back to £45 per barrel, or below – averaged across the month prior to the date of departure – the fuel cost supplement will be refunded to the guest in the form of an onboard spending credit,” Fred Olsen said.

On departures from April 1, Fred Olsen has imposed the 4.5% fuel surcharge capped at a maximum of £250 per person, per cruise, and taking into account any Fuel Cost Supplement already paid by passengers

The long duration cruises are exempt from the surcharge “based on today’s level of operating costs,” according to the company.

Fred Olsen said it will absorb 2% of the total 6.5% increase in operating costs due to oil price rises in accordance with the EU Package Travel Directive. The fuel surcharge policy will be reviewed monthly “to ensure that it is in line with oil trading prices”.

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