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Oil Hits New Record Level – Global Tuna Fleet Suffersff

18 April 2008 United States

Today the cost of oil reached the record level of US $115 per barrel (117 liters). The impact of the cost of oil on a can of tuna has never been greater as it is now.

Compared to the end of 2005 when a barrel cost US$ 60, the oil cost component per tuna can of 185 gram net and 140 gram drained weight almost doubled.  In 2005 tuna vessels were spending US$ 0,043 on fuel to catch a 140 grams of cleaned tuna meat (1 can), and today this has already risen from 2005 by a hefty 91% to US$ 0,082 per can.  Already this year oil prices rose by 17%!

 

Boat owners nowadays typically need to pay a fuel bill at the pump of about Usd 585.000 if they want to fill up the tanks of their 1000 M/T capacity tuna purse seiner. In the current volatile market each increase of about US$ 13 on oil means another US$ 0,01 extra to the tuna can.

 

On average tuna vessels burn 0,084 liter of oil (almost one third of a glass) to fill each 185g tuna can.

 

Along with the price of such commodities as steel, carton and paper, and vegetable or olive oil, the price of fuel is one of the key factors which influence the value of canned tuna. Considering the current economic, political and environmental conditions it does not look like oil prices will be coming down soon.

 

With less tuna available fisherman need to search over great distances, after that they need to refrigerate fish in some manner to ensure wholesomeness and then deliver the catch to a refrigerated carrier or processing facility. All these activities require quite an increasing amount of fossil energy and costs.