Soaring Fuel Prices And Shipping Disruptions Have Combined To Drive Up Global Skipjack Tuna Prices

Fuel costs have doubled, putting pressure on fishing economics.

   Since the outbreak of the conflict between the US, Israel, and Iran, the cost structure of the global tuna industry has changed significantly. Reports indicate that marine gas oil prices in Africa and the Middle East have nearly doubled from previous levels. Fuel typically accounts for 20% to 30% of the operating costs of purse seine fishing vessels. At current fuel prices, to maintain the existing cost structure, fishing vessels need to increase the selling price of fish by approximately €400 per ton. An executive from a fishing company operating in waters near Africa stated that current fuel prices have already put most of the fleet at a loss. If losses are anticipated at sea, shipowners will naturally reconsider whether to continue operations. Cost pressures have begun to influence market behavior. Some Asian fleets are suspending sales or reducing quotations, waiting for higher prices.

Red Sea Situation Disrupts Logistics System

   Logistical issues are also exacerbating uncertainty in the raw material market. Rising security risks in the Red Sea region have increased the risks of transport via the Suez Canal, forcing some vessels to detour via the Cape of Good Hope route, significantly extending transport time and increasing costs. Refrigerated container freight rates from Asia to the Middle East have increased significantly. Some shipping companies have raised surcharges and tightened space allocation, leading to greater uncertainty for cargo owners when booking space. One trader stated that even with successful bookings, shipping companies cannot guarantee specific departure or arrival times.