Fishing Price going up

Price of going fishing keeps going up, up, up



BY MARK DeCOTIS • FLORIDA TODAY • June 29, 2008

Normally when the economy sneezes, the charter fishing industry shivers.


Now with the economy in the throes of a full-blown cold, charter captains and the people who depend on them for their daily bread are deep into the chills.

The combination of higher fuel costs for the industry and $4-a-gallon gasoline tightening the wallets and discretionary spending of anglers has created a perfect storm that is keeping the charter boats in port even on the best of weather days.

Throw in higher costs for bait and tackle and insurance, and new laws limiting the take of popular species such as grouper and snapper -- a staple for offshore anglers -- and the profit margins for captains has been reduced to the point where it's not even worth firing up the engines.

Capt. Vince Pinto, 70, of Satellite Beach, a retiree who runs Rusty Craft Charters out of Port Canaveral, has his 38-foot Bertram and business up for sale.
"Two years ago, I was doing maybe two-thirds more of what I'm doing now," said Pinto, who has been in business for nearly 11 years. "Last year was bad, and this year is even worse."
He lays the blame on the economy.

"I'm getting half the phone calls I used to get. I used to get a lot of repeat customers. I'm not getting them back. I think it's not a necessity and people are hesitant, I guess."
After much deliberation, Pinto is working on raising his rates in an attempt to help offset his costs.

"I'm almost going out for free. Right now, I'm not even going out, I'm almost afraid to change (the rates) but I need to change them," he said.

Pinto will be charging $500 for a four-hour trip that is basically inshore, $700 for a five-hour trip, six hours for $800, seven hours for $900 and eight hours for $1,000.

His costs for diesel fuel are now in the $4.45 a gallon range, up from about $2.65-$2.75 in 2007 and $1.80 in 2006. His insurance is more than $3,500 and then there's dock fees, haul-out costs and myriad others.
"It's killing me even though I enjoy it," he said. "I don't think anybody could do it if they didn't have another income." Pinto has pensions and Social Security.

Pinto said increased competition is another factor.
He estimated there are 30 to 40 charter operations at the port now, compared to a handful when he first got into the business.
"They're smaller boats, and they charge less," he said. "They're about $100 cheaper. A lot of them just do it on weekends, they have another job."

Second income or not, though, the pure numbers are down and in turn, so are revenues.
"Two years ago, this time of year, I would do 10 trips in a row and have maybe a day off and then do five more in a row," Pinto said. "This year I think I've been out twice in June."
The problems aren't unique to the port.

Some in the charter fishing industry estimate that business is off anywhere from 20 to 90 percent because customers just can't afford the added costs.

Pensacola Charter Boat Association President Paul Redman said even the cost of bait has gone up because of higher fuel costs. Redman said he charged customers $1,200 for a recent six-hour trip on the water but $500 for fuel, $100 for bait and tackle, and $100 for his deckhand meant his profit was $300. Five years ago, it would have exceeded $800.

"It's just about not worth doing it anymore," Redman said.
The charter fishing fleet generated more than $1.1 billion in revenues nationwide, including some related sales, in 2000, the latest figures available, according to the National Marine Fisheries Service.

Capt. Brock Anderson, 60, of North Merritt Island who runs Bottom Dollar Fishing and a 38-foot Delta out of Port Canaveral, has been a full-time fisherman since 1974 and has been a full-time charter operator since 2000.
He is feeling the pain from increased fuel prices affecting the entire leisure industry. His costs are up and his bookings are down, thus he raised his rates for a 10-hour trip from $850 to $1,000.
New rules

But those aren't the only storm clouds on the horizon. It is possible that by Jan. 1, changes in the Magnuson-Stevens Fishery Conservation and Management Act could close all grouper and snapper fishing on the East Coast. In the Gulf of Mexico, red snapper fisheries close Aug. 5 and restrictions on gag and red grouper could be tightened starting Jan. 1. A final decision is expected in September for the East Coast and in August for the Gulf.

"That's just another nail in the coffin," Anderson said. "We have people who only want to catch bottom fish. I'm all for management and I'm all for taking care of the fish, but the National Marine Fisheries had many, many options besides a total closure."

"That's not just for commercial, that's recreational, sportfishing. Everybody cannot catch a grouper or snapper. As far as the charter industry goes, it's just going to make things tougher in economic hard times to begin with. All the party boats that do nothing but catch grouper and snapper, for four months (most likely January through April) they're basically going to be out of business."

Capt. Bob Barfield, 64, of Merritt Island, past president and vice president of the Canaveral Charter Boat Captains Association, sees the challenges beyond the usual suspects. He blames a burgeoning licensing and regulatory bureaucracy for creating a slew of new problems that attack the industry's bottom line.
"All these licenses, requirements . . . it's one thing after another," said Barfield, who runs Scalawag Charters. "It's getting to the point now to where it's almost impossible to make a profit. Your customer looks at you, 'My god, why does it cost so much to go fishin'?' The ready response to that is, 'I tell you what, I'll save you some money. You buy the fuel, and I'll take you fishin'."

"It's a significant problem," Barfield added. "You either have to pass the fuel cost on as a surcharge or you have to raise your prices or you won't make any profit, you can't afford to fish. Charter boat captains fish for two things, mostly to have fun and watch people enjoy themselves but also to make some kind of a living."

Making a living, from the perspective of Capt. Bruce Alcock, who runs Incentive Fishing Charters out of Sebastian, is seriously threatened.

"Because of the higher cost of fuel, fishing charters are becoming so expensive that some people can no longer afford them," he said. "The price of bait is going up, bait and tackle stores are going out of business and less people are traveling. And thanks to the erroneous acts of the South Atlantic Council amendments 15, 16 and 17, which will close the grouper and snapper fishing next January through April, this will finish us off."

Charles "Chuck" Adams, a marine economist at the University of Florida, sees it as a profit and loss situation.
"I would imagine as the price of transportation rises quicker than take-home income rises, as gasoline becomes a more important portion of the family budget, disposable incomes could likely be decreasing," Adams said. "That could very well have an impact on the expenditures that are allowed for various types of recreational activities, including going out on for-hire vessels to go diving or fishing."

"From the market side, the charter fleet might be feeling the pinch. From their cost-of-doing-business side, you have increasing fuel costs, I suspect (hull insurance and other costs) are probably going up as well. Their profitability is getting squeezed down to the point where it's going to make it more difficult for these guys to remain viable."