A third of the world's fleet sent to catch prized tuna could be docked as fuel costs rise
Straits Times 5 Jun 08;
TOKYO - AFTER stocks and cars, it is sushi that is in danger of falling victim to high oil prices.
According to Financial Times (FT) reports, fishing industry groups have warned that a third of the world's long-line tuna fleet - the ships that catch the high-grade tuna used in the Japanese dish - could remain docked this year as soaring fuel costs make fishing unprofitable.
The business is already in decline because of dwindling fish stocks. Japan Tuna, an industry group, said the cost of heavy fuel for long-range tuna ships had doubled over the past year to 120,000 yen (S$1,560) a kilolitre.
It said that 20 per cent of Japan's fleet of 360 ships may suspend operations between next month and October, when catches tend to be lowest.
Wholesale prices for the choicest tuna cuts - those served in high-end restaurants - have risen by about 25 per cent in the past year, although the price of lesser grades sold in supermarkets has barely budged, according to the FT.
Japan had more than 800 long-range tuna ships a generation ago, but the worsening economics of fishing and tighter global quotas have reduced that number by more than half.
Mr Yuichiro Harada, the managing director of the Organisation for the Promotion of Responsible Tuna Fisheries, a Tokyo-based group covering 12 countries, said 140 Taiwanese, Chinese and Korean ships have already decided to suspend operations during the season and more are likely to do so.
The organisation estimates that a third of the global long-line fleet - about 400 ships - could be out of action.
Mr Harada said many owners were only sending ships out to generate cash flow to pay off loans. Daily hauls have already fallen by about 20 per cent due to overfishing, while international quotas on the most valuable tuna varieties, such as the southern bluefin, mean captains can no longer target them to maximise revenues.
'The quotas are bearable because we know that after a few years, stocks will recover, but who knows when oil prices will come down again?' he said.
In Japan, experts say low-cost competition from Taiwan, South Korea and China, combined with consolidation among supermarkets - which has increased retailers' pricing power - have made it difficult for the country's fishermen to pass on higher costs.
