ULSD Fuel Related Surcharge – STB TOTE 701-A

Dear TOTE Maritime Alaska Customers:

Effective February 1, 2017, TOTE Maritime Alaska vessels will begin utilizing fuel with a maximum Sulphur content of 0.1%. This Government-mandated reduction from 1.8% to 0.1% Sulphur content is directly related to the Emission Control Area (ECA) which in the case of the West Coast essentially covers Mexico to Alaska.  This ultra-low-Sulphur-diesel (ULSD) fuel is considerably more expensive than its predecessor.

Due to this revision in vessel-fuel requirements and its attendant costs, TOTE Maritime Alaska will be revising the fuel-related surcharge in tariff STB TOTE 701-A as follows:

•        Item 225 will increase 5% from 34% to 39% effective Sunday, February 5, 2017

Item 225 has been reformatted to include a new line item reflecting an increment labeled “ULSD fuel-related surcharge.”  Below is how it now appears:

Once TOTE Maritime Alaska’s vessels have completed the conversion process enabling them to burn liquefied natural gas, the ULSD Fuel-Related Surcharge will be removed.  In the meantime the increment represented by the ULSD Fuel-Related Surcharge may vary given fuel-cost fluctuations.

TOTE Maritime Alaska will continue to closely monitor fuel costs and make further adjustments to the fuel-related surcharge as appropriate.

Please contact your TOTE Maritime Alaska sales representative with any questions. Thank you very much for your support.