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)

Preliminary economic evaluation of 10 metre (LOA) shallow draft vessel in daily fishery, off Imo River, Cross River State

Scientists from the Institute with the collaboration of Food and Agricultural Organisation (FAO), Rome designed and built a 10-m (LOA) shallow draft vessel. The prototype vessel was tried at Uta-Ewa, Ikot Abasi, Cross River State. The paper deals with the preliminary economic analysis of the performance of prototype vessel. An analysis of the annual return has shown that 43.66% of the annual gross income was paid to labour; 15.91% was spent on repairs and replacements; 7.76% on fuel and lubricants; 24.38% on maintenance costs and the return of investment, 6.2%. This low return of investment is attributable to high percentage of labour costs as well as low fishing intensity

A Low-level Geographic Information System for coastal zone management, with applications to Brunei Darussalam: Part I: The concept and its design elements

This contribution is the first part of a four-part series documenting the development of B:RUN, a software program which reads data for common spreadsheets and presents them as low-resolution maps of slates and processes. The program emerged from a need which arose during a project in Brunei Darussalam for a 'low level' approach for researchers to communicate findings as efficiently and expeditiously as possible. Part I provides a overview of the concept and design elements of B:RUN. Part II will highlight results of the economics components of the program evaluating different fishing regimes, sailing distances from ports and fleet operating costs. Environmental aspects will be presented in Part III in the form of overlay maps. Part IV will summarize the implications of B:RUN results to coastal and fishery resources management in Brunei Darussalam and show how this approach can be adapted to other coastlines and used as a teaching and training tool. The following three parts will be published in future editions of Naga, the ICLARM Quarterly. The program is available through ICLARM.

Concentrations of Polychlorinated Biphenyls (PCB’s), Chlorinated Pesticides, and Heavy Metals and Other Elements in Tissues of Belugas, Delphinapterus leucas, from Cook Inlet

Tissues from Cook Inlet beluga whales, Delphinapterus leucas, that were collected as part of the Alaska Marine Mammal Tissue Archival Project were analyzed for polychlorinated biphenyls (PCB’s), chlorinated pesticides, and heavy metals and other elements. Concentrations of total PCB’s (ΣPCB’s), total DDT (ΣDDT), chlordane compounds, hexachlorobenzene (HCB), dieldrin, mirex, toxaphene, and hexachlorocyclohexane (HCH) measured in Cook Inlet beluga blubber were compared with those reported for belugas from two Arctic Alaska locations (Point Hope and Point Lay), Greenland, Arctic Canada, and the highly contaminated stock from the St. Lawrence estuary in eastern Canada. The Arctic and Cook Inlet belugas had much lower concentrations (ΣPCB’s and ΣDDT were an order of magnitude lower) than those found in animals from the St. Lawrence estuary. The Cook Inlet belugas had the lowest concentrations of all (ΣPCB’s aver-aged 1.49 ± 0.70 and 0.79 ± 0.56 mg/kg wet mass, and ΣDDT averaged 1.35 ± 0.73 and 0.59 ± 0.45 mg/kg in males and females, respectively). Concentrations in the blubber of the Cook Inlet males were significantly lower than those found in the males of the Arctic Alaska belugas (ΣPCB’s and ΣDDT were about half). The lower levels in the Cook Inlet animals might be due to differences in contaminant sources, food web differences, or different age distributions among the animals sampled. Cook Inlet males had higher mean and median concentrations than did females, a result attributable to the transfer of these compounds from mother to calf during pregnancy and during lactation. Liver concentrations of cadmium and mercury were lower in the Cook Inlet belugas (most cadmium values were <1 mg/kg and mercury values were 0.704–11.42 mg/kg wet mass), but copper levels were significantly higher in the Cook Inlet animals (3.97–123.8 mg/kg wet mass) than in Arctic Alaska animals and similar to those reported for belugas from Hudson Bay. Although total mercury levels were the lowest in the Cook Inlet population, methylmercury concentrations were similar among all three groups of the Alaska animals examined (0.34–2.11 mg/kg wet mass). As has been reported for the Point Hope and Point Lay belugas, hepatic concentrations of silver were re

Linking elements of the Integrated Ocean Observing System (IOOS) with the planned National Water Quality Monitoring Network. Proceedings from the NOAA-Supported workshop 19-21 September 2005

The National Oceanic and Atmospheric Administration (NOAA), in cooperation with the New Jersey Marine Sciences Consortium (NJMSC), hosted a workshop at Rutgers University on 19-21 September 2005 to explore ways to link the U.S. Integrated Ocean Observing System (IOOS) to the emerging infrastructure of the National Water Quality Monitoring Network (NWQMN). Participating partners included the Mid-Atlantic Coastal Ocean Observing Regional Association, U.S. Geological Survey, Rutgers University Coastal Ocean Observing Laboratory, and the New Jersey Sea Grant College. The workshop was designed to highlight the importance of ecological and human health linkages in the movement of materials, nutrients, organisms and contaminants along the Delaware Bay watershed-estuary-coastal waters gradient (hereinafter, the “Delaware Bay Ecosystem [DBE]”), and to address specific water quality issues in the mid-Atlantic region, especially the area comprising the Delaware River drainage and near-shore waters. Attendees included federal, state and municipal officials, coastal managers, members of academic and research institutions, and industry representatives. The primary goal of the effort was to identify key management issues and related scientific questions that could be addressed by a comprehensive IOOS-NWQMN infrastructure (US Commission on Ocean Policy 2004; U.S. Ocean Action Plan 2004). At a minimum, cooperative efforts among the three federal agencies (NOAA, USGS and EPA) involved in water quality monitoring were required. Further and recommended by the U.S. Commission on Ocean Policy, outreach to states, regional organizations, and tribes was necessary to develop an efficient system of data gathering, quality assurance and quality control protocols, product development, and information dissemination.

Elements of the U.S. carbon budget: progress and preliminary results

This report outlines the approaches for estimating the carbon budget for the United States, a data rich subcontinental area, and presents an overview of problems encountered and preliminary results obtained.

Ecological models and GIS maps of macroalgae, as bioindicator for ecological status of Hormozgan rocky shores

In this study a total of 75 species were identified, from which 17 species, 9 genes and 6 families; belonged to Green Algae, 18 species, 7 genes and 4 families; belonged to Brown Algae, and 40 species, 18 genes and 11 families; belonged to Red Algae. From total times spent for sampling, it was determined that at lengeh harbor with 6 species, had the lowest diversity of green algae. The species diversity of brown algae at Michael location with 10 species each; had the highest, and Tahooneh location with 5 species; had the lowest species diversity. Species diversity of red algae at Michael location with 28 species; had the highest, and Sayeh Khosh location with 13 species; had the lowest diversity. From all locations where sampling took place, the highest species diversity regarding Time and Space for all three groups of algae; were associated to Late February (20th. Feb. ), and late March(20th. March). Coverage data of macroalgae and Ecological Evaluation Index indicate a high level of eutrophication for the Saieh khosh, and Bostaneh, They are classified as zones with a bad and poor ecological status. It has been proved that concentrations of biogenic elements and phytoplankton blooming are higher in these zones. The best values of the estimated metrics at Tahooneh and Michaeil could be explained with the good ecological conditions in that zone and the absence of pollution sources close to that transect . The values of abundance of macroalgae and Ecological Evaluation Index indicate a moderate ecological conditions for the Koohin, Lengeh and Chirooieh.