Rising fuel prices threaten to trigger a crisis in the global fishing industry – Reuters
The sharp rise in diesel fuel prices has triggered a major systemic crisis in the global commercial fishing industry. Due to the high cost of fuel, going out to sea has become financially unprofitable for many companies and private captains. The main factor behind the fuel crisis was the military conflict in the Middle East involving the U.S., Israel, and Iran, which led to the closure of strategic logistics routes, including the Strait of Hormuz.
This is reported by Reuters.
Economic pressure on fishermen has been observed in all key regions of the world:
United States: The average cost of a gallon of marine diesel has jumped to $5.65, which is nearly $2 higher than last year’s figures. In Alaska, fuel costs have reached 40% of the total budget for each commercial trip, and in the Gulf of Mexico, shrimp companies are canceling trips en masse due to a lack of working capital to refuel their massive fuel tanks. Captains are forced to adjust their operations—for example, checking lobster traps only once a week instead of the traditional four days.
Asia-Pacific region: In South Korea’s South Gyeongsang Province, the frequency of fishing trips for mackerel, anchovy, and herring has dropped by more than a third. In Indonesia, fleet owners report that the current market value of the catch is insufficient to cover even basic operational costs for diesel, leading captains to massively refuse new trips upon returning to port.
European Union: A large-scale fleet shutdown has been recorded in Europe. In particular, according to an official statement from the Dutch Fishermen’s Union, about half of the country’s entire national commercial fleet is currently forced to remain idle and moored at docks.
Representatives of the Food and Agriculture Organization of the United Nations (FAO) note that the global food system is already under significant pressure due to a shortage of mineral fertilizers and global disruptions in logistics. Experts emphasize that while short-term fuel price spikes were previously offset by companies’ internal reserves, a prolonged period of extremely high prices will inevitably lead to a radical restructuring of the global seafood market, shortages of certain fish species, and a sharp rise in prices for end consumers.
On April 16, Fatih Birol, head of the International Energy Agency, stated that Europe has only six weeks’ worth of jet fuel reserves remaining.
European airlines, including Lufthansa, Air France, and British Airways, have appealed to the authorities to lower taxes, provide tax breaks, and allow the use of Jet A fuel due to the emergency situation in the Middle East. This is important because the conflict is significantly impacting their operations and leading to higher fares.
