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)

Smaller Deborah number inducing more serrated plastic flow of metallic glass

Spherical nano-indentations of Cu46Zr54 bulk metallic glass (BMG) model systems were performed using molecular dynamics (MD) computer simulations, focusing specifically on the physical origin of serrated plastic flow. The results demonstrate that there is a direct correlation between macroscopic flow serration and underlying irreversible rearrangement of atoms, which is strongly dependent on the loading (strain) rate and the temperature. The serrated plastic flow is, therefore, determined by the magnitude of such irreversible rearrangement that is inhomogeneous temporally. A dimensionless Deborah number is introduced to characterize the effects of strain rate and temperature on serrations. Our simulations are shown to compare favorably with the available experimental observations.

A universal Biot number determining the susceptibility of ceramics to quenching

A universal Biot number of ceramics, which not only determines the susceptibility of the ceramics to quenching but also indicates the duration that the ceramics fail during thermal shock, is theoretically obtained. The present analysis shows that the thermal shock failure of the ceramics with a Biot number greater than this universal value is a very rapid process that just occurs in the initial regime of the heat conduction of the ceramics. This universal Biot number provides a guide to the selection of the ceramics applying to the thermostructural engineering including thermal shock.

Estimation of the number of purse-seiner sets on tuna associated with dolphins in the Eastern Pacific Ocean during 1959-1980

ENGLISH: Annual estimates of the number of purse-seine sets made on tunas associated with dolphins are needed to estimate the total number of dolphins killed incidentally by the eastern Pacific tuna fishery. The most complete source of data, the Inter-American Tropical Tuna Commission's logbook data base, was used in this study. In the logbook data base, most sets are identified as being either associated with dolphins or not associated with dolphins. Some sets are not identified in this respect. However, the number of these unidentified sets which were associated with dolphins have been estimated by stratifying the logbook data according to whether or not any tuna were caught, whether or not the nearest identified set was associated with dolphins, and the distance to the nearest identified set. Most of the unidentified sets fell in strata characterized by a proportion of sets on tuna associated with dolphins that was lower than the overall unstratified proportion. Landings data were used to estimate the number of sets on tunas associated with dolphins from fishing trips not included in the logbook data base. SPANISH: Se necesitan las estimaciones anuales de la cantidad de lances realizados sobre atunes asociados con delfines para calcular todo el número de delfines muertos accidentalmente en la pesca atunera del Pacífico oriental. Se empleó en este estudio la fuente más completa-los datos de la Comisión Interamericana del Atún Tropical, proveniente de los cuadernos de bitácora. En éstos, la mayoría de los lances han sido identificados ya sea como asociados o no asociados con delfines. Algunos de los lances no han sido identificados a este respecto. Sin embargo, se ha estimado el número de estos lances asociados con delfines que no se habían identificado, al estratificar los datos de bitácora de acuerdo a si se había o no capturado atún, a si el lance identificado más próximo era o no un lance asociado con delfines y al averiguar la distancia del lance identificado más cercano. La mayoría de los lances sin identificar se colocan en los estratos caracterizados por una proporción de lances sobre atunes asociados con delfines, inferior a la proporción general sin estratificar. Se usaron los datos de los desembarques para calcular la cantidad de lances sobre atunes asociados con delfines en viajes pesqueros que no fueron incluídos en la base de los datos de bitácora. (PDF contains 73 pages.)

Sequence specific recognition and cleavage of DNA by synthetic molecules

DNA recognition is an essential biological process responsible for the regulation of cellular functions including protein synthesis and cell division and is implicated in the mechanism of action of some anticancer drugs. Studies directed towards defining the elements responsible for sequence specific DNA recognition through the study of the interactions of synthetic organic ligands with DNA are described.

DNA recognition by poly-N-methylpyrrolecarboxamides was studied by the synthesis and characterization of a series of molecules where the number of contiguous N-methylpyrrolecarboxamide units was increased from 2 to 9. The effect of this incremental change in structure on DNA recognition has been investigated at base pair resolution using affinity cleaving and MPE•Fe(II) footprinting techniques. These studies led to a quantitative relationship between the number of amides in the molecule and the DNA binding site size. This relationship is called the n + 1 rule and it states that a poly-N methylpyrrolecarboxamide molecule with n amides will bind n + 1 base pairs of DNA. This rule is consistent with a model where the carboxamides of these compounds form three center bridging hydrogen bonds between adjacent base pairs on opposite strands of the helix. The poly-N methylpyrrolecarboxamide recognition element was found to preferentially bind poly dA•poly dT stretches; however, both binding site selection and orientation were found to be affected by flanking sequences. Cleavage of large DNA is also described.

One approach towards the design of molecules that bind large sequences of double helical DNA sequence specifically is to couple DNA binding subunits of similar or diverse base pair specificity. Bis-EDTA-distamycin-fumaramide (BEDF) is an octaamide dimer of two tri-N methylpyrrolecarboxamide subunits linked by fumaramide. DNA recognition by BEDF was compared to P7E, an octaamide molecule containing seven consecutive pyrroles. These two compounds were found to recognize the same sites on pBR322 with approximately the same affinities demonstrating that fumaramide is an effective linking element for Nmethylpyrrolecarboxamide recognition subunits. Further studies involved the synthesis and characterization of a trimer of tetra-N-methylpyrrolecarboxamide subunits linked by β-alanine ((P4)_(3)E). This trimerization produced a molecule which is capable of recognizing 16 base pairs of A•T DNA, more than a turn and a half of the DNA helix.

DNA footprinting is a powerful direct method for determining the binding sites of proteins and small molecules on heterogeneous DNA. It was found that attachment of EDTA•Fe(II) to spermine creates a molecule, SE•Fe(II), which binds and cleaves DNA sequence neutrally. This lack of specificity provides evidence that at the nucleotide level polyamines recognize heterogeneous DNA independent of sequence and allows SE•Fe(II) to be used as a footprinting reagent. SE•Fe(II) was compared with two other small molecule footprinting reagents, EDTA•Fe(II) and MPE•Fe(II).

Supporting regional coastal and ocean managers: Linking ocean observing tools and capabilities to the priority needs of managers and users in the southeast region

Ocean observing has been recognized by the US Commission on Ocean Policy, the Ocean Research and Resources Advisory Panel, the Joint Ocean Commission Initiative, and many other ocean policy entities and initiatives as foundational to meeting the nation’s need for more effective coastal and ocean management. The Interim Report of the Interagency Task Force on Ocean Policy (September 2009) has called for strengthening the nation’s capacity for observing the nation’s ocean, coastal, and Great Lakes systems. (PDF contains 3 pages)

Linking public perceptions of socioeconmic change and marine resource management in rural Maine

Rural coastal regions across the United States are coping with dramatic social and environmental changes. Historically, these areas relied heavily on fishing and marine commerce and these economic activities defined the character of coastal communities. However, shifting ocean and climate conditions, together with inadequate management strategies, have led to sharp declines in harvestable marine resources. These trends, along with increasing competition from aquaculture and international sources of fish, have led to the steady decline of fishing as the central economic activity in many rural coastal communities. (PDF contains 3 pages)