Tue 11 Aug 2009, 09:38 GMT

Fuel surcharge criticized by UK businesses


UK firms say Steam Packet surcharge is preventing them from doing business with the Isle of Man.



Transport businesses in Merseyside, England, say the current bunker fuel surcharge being implemented by the Isle of Man Steam Packet Company is preventing them from doing business with the island, the Liverpool Daily Post reports.

Small businesses are warning that despite recent decreases in the bunker surcharge they are still unable to compete in the current workplace.

The claims came as the Isle of Man's government launched an appeal to businesses and passengers to provide information to help the Office of Fair Trading in its ongoing investigation of the company.

On 1st June 2009, Steam Packet announced that it had reduced its fuel surcharge for passengers and freight. The surcharge for new bookings was cut by £1.50, or 30 percent, from £5.00 single per passenger to £3.50 and the surcharge on freight was reduced by 53 pence, or 10.6 percent, from £5 per metre to £4.47 per metre.

The surcharge cuts followed a £3 reduction to the freight fuel surcharge in the last review on 1st March 2009.

However, despite recent reductions in the surcharge, Steam Packet, which sails from Liverpool to the Isle of Man, still remains one of the most expensive crossings in the UK.

Speaking about the surcharge cut in June, Isle of Man Steam Packet Company Chief Executive, Mark Woodward, said "This new agreement is good news for both the Steam Packet Company and the Isle of Man and has resulted in a substantial fall in the surcharge for passengers and a further reduction in the rate for freight, which fell by 37% at the previous review in March. The new agreement reflects current market rates and forecasts, as per the Select Committee preference, and three-monthly reviews will reflect market changes more promptly than the old agreement."

Minister for Transport David Anderson added: ‘The Department studied the Select Committee recommendations carefully and consulted widely before drawing up the new agreement. We’re confident that any flaws there may have been under the old agreement have now been adequately addressed.

‘In particular, the three-monthly reviews should be welcomed by both general passengers and freight customers, as one of the major issues with the old agreement was that it was felt there was too long between reviews and, as such, the fuel surcharges did not reflect the changes in the market quickly enough.’


Nicolaj Kofoed, Blue Energy Partners. Blue Energy Partners appoints Nicolaj Kofoed as group treasurer  

Bunker firm strengthens treasury function as banking relationships and funding needs grow.

Bunker Partner logo. Bunker Partner seeks trainee lawyer for Athens office  

Role offering the opportunity to a law graduate to gain practical experience in maritime law.

Type approval test (TAT) for H22CDF-GA engine. HD Hyundai gains type approval for low-pressure ammonia dual-fuel engine  

HHI-EMD completes type approval testing for its H22CDF-GA engine, expanding its ammonia engine portfolio to two fuel-supply technologies.

Moataz Abdelrahman, Flex Commodities. Flex Commodities appoints Moataz Abdelrahman as senior marine fuels trader  

Dubai-based trading firm adds senior trader to expand marine fuels and bunker trading activities across the Middle East.

Container vessel manoeuvring in port. Alternative-fuel ship orders outpace port infrastructure, LR report finds  

Lloyd's Register study shows methanol and ammonia bunkering infrastructure lagging behind newbuild orders for alternative-fuel vessels.

UEC60LSJ ammonia-fuelled engine render. J-ENG secures orders for four ammonia-fuelled engines under Japanese PCTC project  

Vessels form part of plan to build four ammonia-fuelled car carriers, a dedicated bunkering vessel and supply chain.

Hanwha Power receives ABS AiP for battery-powered containership design. ABS grants AIP to Hanwha Power for 1,700-TEU battery-powered container ship  

Design uses roughly 151 MWh of swappable battery storage for fully electric propulsion on a container vessel.

Peter Krahenbuhl, WinGD. WinGD signs first licence deal with HD Hyundai Marine Engine to expand Korean production  

Mid-bore engine portfolio gains new production route into Korea's bulk carrier and tanker newbuild markets.

ONE Symphony naming ceremony. Ocean Network Express names ammonia- and methanol-ready newbuild ONE Symphony  

Vessel features conventional diesel main engine, with concept designs approved for possible future conversion to methanol or ammonia.

Sing Fuels logo. Sing Fuels seeks Asia-based supply trader to bolster bunker procurement team  

Singapore bunkering firm is recruiting a supply trader to manage marine fuel purchasing across Asia.