Unalaska fuel surcharge rises from $0.22 to $0.36 per kWh as Iran war lifts diesel costs
Diesel costs tied to the Iran war pushed Unalaska's fuel surcharge to as much as $0.36 per kWh, squeezing seafood processors, fishers and the city grid.
The story in focus
The Guardian reports that Unalaska, the US's most productive seafood port by volume, has seen its power fuel surcharge climb from $0.22 to as much as $0.36 per kilowatt hour after diesel prices rose with the Iran war. Seafood operators, longshoremen and local businesses describe cost pressure and shifting freight and labor arrangements.
- Unalaska's fuel surcharge rose from $0.22 per kWh last year to as much as $0.36, utility director Erik Hernandez said
- Fishers reported paying $86,000 for 12,000 gallons of diesel, with a refill expected to cost $100,000
- NOAA data cited by The Guardian show more than 780m pounds of catch worth nearly $225m through Dutch Harbor in 2023
- ILWU shop steward Shawn Schomer said Matson managers want containers loaded out to avoid tariffs; Matson declined to comment
- Unisea is rebuilding its workforce after foreign guest-worker visas became unreliable, director Ron Kjorsvik said
Fuel costs pressure port operations
Unalaska's electricity fuel surcharge climbed from $0.22 per kilowatt hour last year to as much as $0.36, utility director Erik Hernandez said, after crude prices rose when the Iran war began. The city and its seafood plants run on diesel-fired generators; a Department of Energy grant for wind turbines and battery storage, which the city had applied for, was withdrawn in June 2025, Hernandez said.
Fishing operators absorb the increase directly. Oystein Lone, who has fished since 1989, paid $86,000 for 12,000 gallons of diesel and expected a refill to cost $100,000. Captain CJ Peterson said if fish prices do not match fuel costs, vessel owners could stop fishing. City council member Daneen Looby said higher shipment surcharges may force her to raise menu prices at her saloon.
Labor, freight and tariffs
Unisea, one of Unalaska's largest processors, is rebuilding its workforce after moving away from foreign guest workers whose visas proved unreliable, Alaska operations director Ron Kjorsvik said. Fifteen Ukrainians on a special visa remain, but none had their visas renewed, he said.
Shawn Schomer, the International Longshore and Warehouse Union shop steward at shipping line Matson, said managers ask crews to load containers that have sat too long in the US so they leave the country and avoid import tariffs. Schomer questioned the economics of shipping empties back out; a Matson spokesperson declined to comment.
NOAA data cited by The Guardian put 2023 Dutch Harbor throughput above 780m pounds of catch valued at nearly $225m. Pollock was small and scarce in 2026, reducing work for longshoremen moving refrigerated containers to Asia and the US west coast.
How much did Unalaska's fuel surcharge rise?
The surcharge climbed from $0.22 per kilowatt hour last year to as much as $0.36 now, utility director Erik Hernandez said, after diesel costs rose with the Iran war.
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