Cape May – Lewes Ferry Implements Fuel Surcharge
Rising Vessel Fuel Cited; Surcharge Subject to Change
(N. Cape May, NJ) Due to the rising price of fuel and the volatility in the fuel markets, the Cape May – Lewes Ferry (CMLF) will be implementing a fuel surcharge on all vehicle fares effective April 1, 2011. The surcharge, which is $2.00 per vehicle from April 1-April 30, 2011, is designed to pass along a portion of the increased cost of fuel to the customer. There is no separate surcharge for passengers.
“Fuel prices have increased significantly for the Cape May – Lewes Ferry in recent years,” said Heath Gehrke, Director of Ferry Operations. “The surcharge is tied directly to the price of fuel and the Ferry will continue to absorb a portion of the increase in fuel costs, thus sharing the impact of these increased costs with our customers.” Gehrke noted that some of the increase in fuel costs is the result of EPA regulations, which mandate all vessels to burn lower emissions-producing, cleaner fuel. “The downside is cost, but the upside is we are a greener operation, leaving less of a footprint on the environment,” said Gehrke.
The fuel surcharge is determined on a month-to-month basis. The price of vessel fuel is reviewed on the 15th of each month to determine if the fuel surcharge will be implemented for the following calendar month. When the price of fuel exceeds the pre-established benchmark, the fuel surcharge is assessed on the first of the following month. For the past two years, CMLF fuel price increases did not exceed the operation’s 8-year fuel price trend amounts that would have triggered a fuel surcharge until this month.
“The fuel surcharge will not become a permanent part of fares, but will turn on and off as the price we pay for fuel increases and decreases,” Gehrke added. “If the price of fuel drops to below the benchmark, we will eliminate the fuel surcharge.”
In February 2009, the Delaware River and Bay Authority (DRBA) Commission adopted Resolution 09-05, which authorizes Cape May – Lewes Ferry management to apply a fuel surcharge on vehicles using the ferry service. The fuel surcharge is only applied when the price the DRBA pays for marine diesel fuel rises faster than the 8-year trend.
Surcharges are subject to change at the beginning of each month and will be assessed when the customer makes a reservation or checks-in at the tollbooth. Please check our website, www.CMLF.com, or call 800-643-3779 to get the most up-to-date information on the fuel surcharge.