Several Isle of Man businesses say they have been hit hard by the Steam Packet’s fuel surcharge, with some warning it could threaten their future.

That’s according to a new survey conducted by the Isle of Man Chamber of Commerce which gathered responses from 58 member businesses across sectors including hospitality, retail, agriculture, healthcare, logistics and charities.

The fuel surcharge is an additional charge added to ferry fares and freight costs to reflect changes in global fuel prices, which have been volatile in recent months due to disruption in oil supplies linked to the US-Iran conflict.

According to the survey, more than half of respondents (51.7%) said the surcharge had already led to ‘a significant cost increase that will affect their pricing or margins’, while 15.5% described the impact as ‘severe enough to threaten business viability or growth’. Firms warn of ‘severe impact’ from Steam Packet charges

Only 12.1% reported no material impact.

Almost half (48%) said they would pass the cost on to customers, either fully or in part, while 19% said they would reduce costs elsewhere, including staffing.

According to the chamber, businesses who took part in the survey highlighted a range of concerns, particularly around freight.

One respondent said the surcharge was ‘another blow to the hospitality industry’, while an unnamed agricultural business pointed to ‘extra cost of essential imported animal feeds and fertilisers’.

A small food producer described the impact as ‘pretty devastating’, warning they may not break even on exports, while a dental provider said suppliers ‘may stop delivering to the island entirely’, potentially affecting healthcare provision.

The chamber is now urging the Steam Packet to give ‘clear and regular public communication’ about how the surcharge level is set and is encouraging the government to consider ‘targeted subvention’ to help sectors most affected by higher costs.

A spokesperson for the Chamber of Commerce said: ‘Chamber recognises that the Steam Packet Company is operating in a challenging environment and that the surcharge reflects genuine fuel cost volatility.

‘However, as the owner of the Steam Packet Company, government has the power to assess the wider economic impact and to consider what steps may be appropriate.

‘[We will] be writing to government to share the survey results and anecdotal evidence from businesses, and to request a meeting.’

In response, the Steam Packet Company said fuel costs are ‘around double what they were in late December 2025’, although it stressed the latest surcharge has ‘had only a modest effect’, increasing standard fares by less than 2%.

A spokesperson for the Steam Packet said: ‘The fuel surcharge has existed for over 20 years either under the original User Agreement and the more recent, Tynwald approved, Sea Services Agreement.

‘It’s a non‑profit mechanism which is independently verified by the Department of Infrastructure.

‘Fuel surcharges are a common measure adopted by the travel industry to help protect service delivery during periods of fuel price unpredictability.

‘The company remains focused on balancing cost pressures with its long‑standing commitment to residents and businesses.’