Fishing boats worldwide stuck dockside as diesel prices surge on Iran war

KENNEBUNK, Maine – Captain Chris Welch of Kennebunk is catching fewer lobsters this spring as soaring diesel prices make it too expensive to take his fishing boat out as often.

Instead of checking and re-baiting his traps every four or five days, Welch now waits seven to 10 days between trips to conserve fuel.

“It cuts into your profitability at the end of the day,” Welch said after fueling his vessel, Quality Time, on a rainy day at Kennebunk Harbor. “We are having to pay much more attention to our bottom line.”

Welch is one of many fishermen worldwide whose boats are spending more time at the dock this spring. Soaring fuel costs, driven by the U.S.-Israeli war on Iran, are squeezing already narrow profit margins, according to interviews by Reuters with several U.S. fishermen, fishing groups, and industry representatives abroad.

The issue spans from Maine’s rocky coast to South Korea and the Netherlands, and it could worsen the global food system’s vulnerability. Surging fertilizer prices caused by blocked shipments from the Middle East are already prompting farmers to reconsider their planting plans.

The United Nations Food and Agriculture Organization (FAO) noted that past fuel spikes had little impact on the global fish catch. However, Manuel Barange, director of FAO’s Fisheries and Aquaculture Division, warned, “If elevated fuel prices persist over a longer period, the pressure on the sector could intensify and affect market dynamics.”

Fuel prices are a growing concern for both consumers and businesses and could pose a political vulnerability for President Donald Trump’s Republican party as it seeks to defend slim congressional majorities in the November midterm elections. Trump has courted the U.S. commercial fishing industry, issuing an executive order last year aimed at reducing regulations and promoting technologies to help it compete globally.

Welch said it remains unclear how Maine’s reduced seafood catch might affect local lobster prices this summer, when vacationers flood the state. Dealers that buy and ship lobsters are also grappling with higher fuel costs, which could affect their operations.

“This affects us every day,” he said.

Fewer Days on the Water

Diesel prices hit an average of $5.65 per gallon this week, up from $3.55 a year ago, approaching the 2022 record high of $5.82, according to AAA’s Fuel Prices monitor. Fuel is a major expense for fishing fleets, which may need tens of thousands of gallons to operate their vessels.

Some shrimpers on the U.S. Gulf Coast can no longer afford to fill their 15,000-gallon tanks and are skipping trips, said Deborah Long, media liaison at the Southern Shrimp Alliance. Even before the fuel spike, U.S. shrimp imports had cut the sector’s value by 50% between 2021 and 2023, according to a National Oceanic and Atmospheric Administration report.

“That jump in price has taken away their entire margin,” Long said.

Alaska fishermen are also feeling the pinch. Fuel can account for up to 40% of a fishing trip’s expenses, said Linda Behnken, a Sitka fisherman and executive director of the Alaska Longline Fishermen’s Association.

“It went up over a dollar a gallon from one week to the next, right before everybody was filling up to start the season,” Behnken said. “That’s a really big impact on operating costs.”

For now, the prices of halibut and sablefish, also known as black cod, are high enough to justify regular trips. But when the less-profitable salmon season begins in July, diesel costs may make fishing unfeasible.

Other rising expenses, including bait and rope, are adding to the strain, said Sonny Beal, president of the Maine Lobstermen’s Association.

“A lot of us are spending fewer days on the water,” he said.

Global Impacts

The ripple effects are being felt worldwide. In South Korea’s South Gyeongsang province, fishing trips for species like anchovy, gizzard shad, yellowtail, and mackerel have dropped by more than 30% since the war began, according to Lee Gi-sam, secretary general of the national fishermen’s alliance.

In Indonesia, most fishing boats remain tied up because fish prices do not offset spiking diesel costs, said Akhiq Falih Al Arif, a boat owner in Pati Regency, Central Java. Muhammad Billahmar, secretary general of the Indonesian tuna association, added that boats already at sea continue fishing, but those docked are staying in port.

Europe has seen similar effects. The Dutch Fishers Union reported that half of its vessels were unable to fish just weeks after the war began.

The ongoing fuel crisis highlights how geopolitical conflicts can reverberate through global food markets, affecting both fishermen and consumers alike. -Reporting by Leah Douglas in Washington, Lauren Owens Lambert in Kennebunk, Maine, and Richard Valdmanis in Portland, Maine; additional reporting by Heejin Kim in Seoul and Yuddy Cahya Budiman and Dewi Kurniawati in Jakarta; Editing by David Gregorio/Reuters