The Annual Economic Survey of Federal Gulf Shrimp Permit Holders: Report on the Design, Implementation, and Descriptive Results for 2006

This technical memorandum documents the design, implementation, data preparation, and descriptive results for the 2006 Annual Economic Survey of Federal Gulf Shrimp Permit Holders. The data collection was designed by the NOAA Fisheries Southeast Fisheries Science Center Social Science Research Group to track the financial and economic status and performance by vessels holding a federal moratorium permit for harvesting shrimp in the Gulf of Mexico. A two page, self-administered mail survey collected total annual costs broken out into seven categories and auxiliary economic data. In May 2007, 580 vessels were randomly selected, stratified by state, from a preliminary population of 1,709 vessels with federal permits to shrimp in offshore waters of the Gulf of Mexico. The survey was implemented during the rest of 2007. After many reminder and verification phone calls, 509 surveys were deemed complete, for an ineligibility-adjusted response rate of 90.7%. The linking of each individual vessel’s cost data to its revenue data from a different data collection was imperfect, and hence the final number of observations used in the analyses is 484. Based on various measures and tests of validity throughout the technical memorandum, the quality of the data is high. The results are presented in a standardized table format, linking vessel characteristics and operations to simple balance sheet, cash flow, and income statements. In the text, results are discussed for the total fleet, the Gulf shrimp fleet, the active Gulf shrimp fleet, and the inactive Gulf shrimp fleet. Additional results for shrimp vessels grouped by state, by vessel characteristics, by landings volume, and by ownership structure are available in the appendices. The general conclusion of this report is that the financial and economic situation is bleak for the average vessels in most of the categories that were evaluated. With few exceptions, cash flow for the average vessel is positive while the net revenue from operations and the “profit” are negative. With negative net revenue from operations, the economic return for average shrimp vessels is less than zero. Only with the help of government payments does the average owner just about break even. In the short-term, this will discourage any new investments in the industry. The financial situation in 2006, especially if it endures over multiple years, also is economically unsustainable for the average established business. Vessels in the active and inactive Gulf shrimp fleet are, on average, 69 feet long, weigh 105 gross tons, are powered by 505 hp motor(s), and are 23 years old. Three-quarters of the vessels have steel hulls and 59% use a freezer for refrigeration. The average market value of these vessels was $175,149 in 2006, about a hundred-thousand dollars less than the average original purchase price. The outstanding loans averaged $91,955, leading to an average owner equity of $83,194. Based on the sample, 85% of the federally permitted Gulf shrimp fleet was actively shrimping in 2006. Of these 386 active Gulf shrimp vessels, just under half (46%) were owner-operated. On average, these vessels burned 52,931 gallons of fuel, landed 101,268 pounds of shrimp, and received $2.47 per pound of shrimp. Non-shrimp landings added less than 1% to cash flow, indicating that the federal Gulf shrimp fishery is very specialized. The average total cash outflow was $243,415 of which $108,775 was due to fuel expenses alone. The expenses for hired crew and captains were on average $54,866 which indicates the importance of the industry as a source of wage income. The resulting average net cash flow is $16,225 but has a large standard deviation. For the population of active Gulf shrimp vessels we can state with 95% certainty that the average net cash flow was between $9,500 and $23,000 in 2006. The median net cash flow was $11,843. Based on the income statement for active Gulf shrimp vessels, the average fixed costs accounted for just under a quarter of operating expenses (23.1%), labor costs for just over a quarter (25.3%), and the non-labor variable costs for just over half (51.6%). The fuel costs alone accounted for 42.9% of total operating expenses in 2006. It should be noted that the labor cost category in the income statement includes both the actual cash payments to hired labor and an estimate of the opportunity cost of owner-operators’ time spent as captain. The average labor contribution (as captain) of an owner-operator is estimated at about $19,800. The average net revenue from operations is negative $7,429, and is statistically different and less than zero in spite of a large standard deviation. The economic return to Gulf shrimping is negative 4%. Including non-operating activities, foremost an average government payment of $13,662, leads to an average loss before taxes of $907 for the vessel owners. The confidence interval of this value straddles zero, so we cannot reject, with 95% certainty, that the population average is zero. The average inactive Gulf shrimp vessel is generally of a smaller scale than the average active vessel. Inactive vessels are physically smaller, are valued much lower, and are less dependent on loans. Fixed costs account for nearly three quarters of the total operating expenses of $11,926, and only 6% of these vessels have hull insurance. With an average net cash flow of negative $7,537, the inactive Gulf shrimp fleet has a major liquidity problem. On average, net revenue from operations is negative $11,396, which amounts to a negative 15% economic return, and owners lose $9,381 on their vessels before taxes. To sustain such losses and especially to survive the negative cash flow, many of the owners must be subsidizing their shrimp vessels with the help of other income or wealth sources or are drawing down their equity. Active Gulf shrimp vessels in all states but Texas exhibited negative returns. The Alabama and Mississippi fleets have the highest assets (vessel values), on average, yet they generate zero cash flow and negative $32,224 net revenue from operations. Due to their high (loan) leverage ratio the negative 11% economic return is amplified into a negative 21% return on equity. In contrast, for Texas vessels, which actually have the highest leverage ratio among the states, a 1% economic return is amplified into a 13% return on equity. From a financial perspective, the average Florida and Louisiana vessels conform roughly to the overall average of the active Gulf shrimp fleet. It should be noted that these results are averages and hence hide the variation that clearly exists within all fleets and all categories. Although the financial situation for the average vessel is bleak, some vessels are profitable. (PDF contains 101 pages)

The economic importance of marine angler expenditures in the United States.

In 1998, the National Marine Fisheries Service (NMFS) began a series of marine angler expenditure surveys in the coastal regions of the United States (U.S.) to evaluate marine recreational fishing expenditures and the financial impacts of these expenditures in each region and the U.S. as a whole. In this report, we use the previously estimated expenditure estimates to assess the total financial impact of anglers’ saltwater expenditures. Estimates are provided for sales, income, employment, and tax impacts for each coastal state in the U.S. Aggregate estimates are also provided for the entire U.S., excluding Alaska, Hawaii, and Texas. Direct, indirect, and induced effects associated with resident and non-resident angler expenditures were estimated using a regional input-output modeling system called IMPLAN Pro. Nationwide, recreational saltwater fishing generated over $30.5 billion in sales in 2000, nearly $12.0 billion in income, and supported nearly 350,000 jobs. Approximately 89 cents of every dollar spent by saltwater anglers was estimated to remain within the U.S. economy. At the state level, many of the goods anglers purchased were imports, and, as such, as little as 44 cents of every dollar stayed in Rhode Island and as much as 80 cents of every dollar stayed in Georgia. In the Northeast, the highest impacts were generated in New Jersey, even though recreational fishing expenditures in Massachusetts and Maryland were considerably higher. In the Southeast, the highest impacts were generated in Florida, and on the Pacific Coast, the highest impacts were generated in California. Expenditures on boat maintenance/expenses generated more impacts than any other expenditure category in the U.S. Expenditures on rods and reels was the single most important expense category in terms of generating impacts in most of the Northeast states. Expenditures on boat expenses generated the highest in most Southeast states, and expenditures for boat accessories produced the highest impacts in most Pacific Coast states.(PDF file contains 184 pages.)

Increasing Creel Interview Efficiency Through Early Survey Termination

Operational modifications based on recreational angler activity patterns can be successfully formulated to increase creel survey efficiency without a significant loss of information. This study was conducted to estimate the amount of Texas marine sport-boat angler interview and retained fish data (bay and Gulf) that would be missed both coastwide and within each bay system if surveys were terminated early when no angler interviews were conducted by a specified time. Using this method, <3 percent of the total interviews and retained fish would be missed coastwide by terminating surveys at 1400 hours on weekends and 1600 hours on weekdays throughout the survey year. This would result in the early termination of 14 percent of the weekend surveys and 23 percent of the weekday surveys, thus allowing an annual redirection of 440 work-hours and $6,063 in operating expenses.

Gear modifications for fishing octopus, Octopus vulgaris, on live-bottom and adjacent flat bottom habitats in coastal waters off North Carolina

The Common Octopus, Octopus vulgaris, is an r-selected mollusk found off the coast of North Carolina that interests commercial fishermen because of its market value and the cost-effectiveness of unbaited pots that can catch it. This study sought to: 1) determine those gear and environmental factors that influenced catch rates of octopi, and 2) evaluate the feasibility of small-scale commercial operations for this species. Pots were fished from August 2010 through September 2011 set in strings over hard and sandy bottom in waters from 18 to 30 m deep in Onslow Bay, N.C. Three pot types were fished in each string; octopus pots with- and without lids, and conch pots. Proportional catch was modeled as a function of gear design and environmental factors (location, soak time, bottom type, and sea surface water temperature) using binomially distributed generalized linear models (GLM’s); parsimony of each GLM was assessed with Akaike Information Criteria (AIC). A total of 229 octopi were caught throughout the study. Pots with lids, pots without lids, and conch pots caught an average of 0.15, 0.17, and 0.11 octopi, respectively, with high variability in catch rates for each pot type. The GLM that best fit the data described proportional catch as a function of sea surface temperature, soak time, and station; greatest proportional catches occurred over short soak times, warmest temperatures, and less well known reef areas. Due to operating expenses (fuel, crew time, and maintenance), low catch rates of octopi, and high gear loss, a directed fishery for this species is not economically feasible at the catch rates found in this study. The model fitting to determine factors most influential on catch rates should help fishermen determine seasons and gear soak times that are likely to maximize catch rates. Potting for octopi may be commercially practical as a supplemental activity when targeting demersal fish species that are found in similar habitats and depth ranges in coastal waters off North Carolina.

Scientific assessment of marine harmful algal blooms

Algae are the most abundant photosynthetic organisms in marine ecosystems and are essential components of marine food webs. Harmful algal bloom or “HAB” species are a small subset of algal species that negatively impact humans or the environment. HABs can pose health hazards for humans or animals through the production of toxins or bioactive compounds. They also can cause deterioration of water quality through the buildup of high biomass, which degrades aesthetic, ecological, and recreational values. Humans and animals can be exposed to marine algal toxins through their food, the water in which they swim, or sea spray. Symptoms from toxin exposure range from neurological impairment to gastrointestinal upset to respiratory irritation, in some cases resulting in severe illness and even death. HABs can also result in lost revenue for coastal economies dependent on seafood harvest or tourism, disruption of subsistence activities, loss of community identity tied to coastal resource use, and disruption of social and cultural practices. Although economic impact assessments to date have been limited in scope, it has been estimated that the economic effects of marine HABs in U.S. communities amount to at least $82 million per year including lost income for fisheries, lost recreational opportunities, decreased business in tourism industries, public health costs of illness, and expenses for monitoring and management. As reviewed in the report, Harmful Algal Research and Response: A Human Dimensions Strategy1, the sociocultural impacts of HABs may be significant, but remain mostly undocumented.

Adsorption of aromatic compound by multi-walled carbon nanotube from sea water

It is global concern that soil and water were contaminated with organic substances such as BTEX (benzene) (B), toluene (T) and xylene (x) .The presence of excessive amounts of BTEX in aqueous surroundings may have a greatly adverse impact on water quality and thus endanger public health and welfare. Carbon nanotubes (CNT) have aroused widespread attention as a new type of adsorptions due to their outstanding ability for the removal of various inorganic and organic pollutants from large volume of wastewater. Due to variety of adsorbent and their ability to adsorb pollutant, it is possible to reduce expenses and completely omit pollutant. In this CNT is used as a new adsorbent for removal pollutant such as benzene, toluene, and xylene. The result in the area of adsorbing benzene, toluene, and xylene is as follows: the changes of pH don’t affect the capacity of adsorption and the greatest amount of adsorption occurs in pH. The greatest amount of adsorption occurs when using 0.01gr CNT oxidized. Comparing CNT with CNT oxidized in term of adsorption capacity, it is proved that the adsorption capacity of CNT oxidized is much more than CNT. The result of comparing the percentage of adsorption of mentioned elements (B, X, T) is as follows; the amount of adsorption of xylene is more than toluene and toluene is more than benzene. It should be mentioned that in this research the percentage of adsorption to measure is between to 70-80.