Insider Opinions On: What’s The Future For The US Fleet?

Transform Aqorau - outgoing PNA CEO

“At the moment there are uncertainties about the future of the South Pacific Tuna Treaty, under which US flagged purse seine vessels have fished in the Pacific region, because of the US government’s notice of withdrawal from the Treaty.

This is a Treaty in which US vessels are given a single license to fish in the EEZs of 16 Pacific Island States, including those of Australia, New Zealand and New Zealand’s territory, Tokelau.

If the Treaty lapses, as it expected to, unless there is an agreement to continue, US vessels will carry on fishing in the region. It does not mean the end of the US fleet, it just means the modus under which it operates will be in tangent with every other fleet, in that it will compete for bilateral and regionally pooled days.

So I don’t see this as a demise of the US fleet, as some media like to portray the current ongoing renegotiations of the Treaty. We will still see a US fleet operate as they have been over the past 28 years, albeit without the umbrella of a Treaty.

There are implications with regards to the US government subsidy of USD 21 million, but don’t forget that there are ongoing efforts in the WTO to remove fisheries subsidies. And that, in my personal view, is going to be the biggest casualty of the demise of the Treaty.”

Brian Hallman - ATA Chairman

“It is difficult to predict the future of the US flag tuna purse seine fleet in this changing international tuna world. Two important factors for the fleet are fishing access questions in the western Pacific, and the cost of fishing operations.

Regarding access, the US fleet has, for 28 years, been able to fish in the waters of Pacific island nations via the so-called “Tuna Treaty”. However, for the past few years, the Treaty has not worked well for the US fleet, because of the high cost of licensing, the vagaries of the VDS, and the overall uncertainty regarding fishing access. Negotiations are ongoing regarding the future of the Treaty, but, at this stage, there is no reason to believe that the Treaty will provide a robust future for the US fleet in terms of fishing access.

Regarding the cost of fishing operations, US vessels are not low cost operators. This reality should not be confused with fishing efficiency. US vessels are as good -- better, really -- than most other flag vessels in terms of their ability to efficiently and successfully catch tuna. But the costs of operating a US vessel are high, for several reasons, including: the high costs of crew; expensive liability insurance; high taxes; and costly regulations regarding health, safety, the environment, and compliance. These cumulative costs are higher than probably every other flag fleet, and there are no subsidies available from the US government for US flag purse seine vessels.

Despite all of this, one should not write off US flag vessels having a viable future. One of the hallmarks of the US purse seine fleet -- with a long history of innovation and overcoming adversity -- is its resilience and adaptability. So whether and how the US fleet continues as a significant operation into the future remains to be seen.”