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Bunker Surcharge Calculation Information Announcement - Update

July 7, 2008 -- Over the past few months, the world has seen an unprecedented amount of volatility in the energies market. As an emergency means to react more quickly to increases in fuel prices and be able to provide the same level of service our customer have come to expect.

The new Bunker Surcharge application affects:

  • All shipments carried between the U.S., Canada and the Eastern Caribbean and Guyana (excluding Barbados). (Click here to view chart)
  • All Caribbean Inter-Island shipments. (Click here to view chart)
  • All inter-Island shipments between Puerto Rico, the U.S. Virgin Islands and the Caribbean. (Click here to view chart)
  • All shipments between the U.S. and the U.S. Virgin Islands and the British Virgin Islands - effective August 10, 2008. (Click here to view chart)

    The process of implementing a bunker fuel surcharge increase is focused around observing trends in the price per barrel of crude oil. The time periods most often analyzed are: weekly, monthly, eight-week and quarterly averages. During times of extreme bunker volatility bunker fuel surcharges are calculated monthly, which is where we are at today.

    The new bunker surcharge calculation will be based on the four week running average of the West Texas Intermediate (WTI) Cushing Spot price of crude oil taken every Monday as published on Bloomberg.com (http://www.bloomberg.com/energy). The spot price is put into a chart that we use to track the price per barrel of crude oil to calculate the four week running average.

    The first Tuesday of every month we will review the four week running average and publish a benchmark WTI Price per barrel that corresponds to a bunker surcharge amount that is presented in a Bunker Surcharge Chart on tropical.com and in our tariff. This chart will show the various bunker surcharge charges by equipment size based on the (WTI) price per barrel, provide an effective date for the new bunker surcharge (30 day notice) and a new estimated date for the next increase or decrease (60 day notice).

    Below you will find the Bunker Review Dates and effective dates if adjustments are necessary.

    Review Date (Tuesday) Effective Date (Sunday) New Estimated Effective Date (Sunday)
    May 4, 2008 June 8, 2008 July 6, 2008
    May 20, 2008 June 22, 2008 July 6, 2008
    June 3, 2008 July 6, 2008 August 3, 2008
    July 1, 2008 August 3, 2008 September 7, 2008
    August 5, 2008 September 7, 2008 October 5, 2008
    September 2, 2008 October 5, 2008 November 9, 2008
    October 7, 2008 November 9, 2008 December 7, 2008
    November 4, 2008 December 7, 2008 January 4, 2009
    December 2, 2008 January 4, 2009 February 8, 2009
    January 6, 2009 February 8, 2009 March 8, 2009
    February 3, 2009 March 8, 2009 April 5, 2009
    March 3, 2009 April 5, 2009 May 10, 2009
    April 7, 2009 May 10, 2009 June 7, 2009

    Tropical Shipping values the close relationships we have built with our customers throughout our 45-year history. Thank you for choosing us as your carrier of choice to the Turks & Caicos Islands. For further information, please contact your local transportation consultant or the U.S. Customer Service Team at 800-638-TROP (8767) or 561-881-3999.

    Complete contact listings, including telephone and fax numbers and email address information can be found 24/7/365 on our website on the Bookings and Customer Servicepage -- found in the Contact area of our website.

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