High prices fuel charter fishing slowdown
Posted: Friday, July 18, 2008 3:00 PM
By Mark Potter, NBC News Correspondent
ISLAMORADA, Fla. – At sunrise, a daily ritual begins at charter boat docks throughout the Florida Keys.
In the fresh morning breeze, captains prepare their big fishing boats for another day in the Gulf Stream. Mates rig the rods, store the bait and fill the coolers with ice. Paying clients then step aboard and settle in for an exciting, but increasingly expensive, day on the water chasing billfish, mahi mahi, kingfish, snapper and other species.
Charter fishing is an integral and historic part of South Florida and other coastal areas around the United States. Here in the Keys, the lore of the sport features colorful and famous anglers, among them novelists Ernest Hemingway and Zane Grey.
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Offshore angling is also important to the region’s economy, luring sportsmen and tourists from around the world. Not only do they charter the big fishing boats, they also book rooms in local motels, dine in the restaurants and spend money in clothing and tackle shops.
The problem, though, is that those visitors have begun to thin out, partly because of their own economic troubles these days, but also due to an increase in charter prices largely blamed on soaring fuel costs.
"I'm actually worried, fearful that this could literally lead to the extinction, so to speak, of the charter industry as we know it," said Richard Stanczyk, the owner-operator of Bud and Mary's Marina in Islamorada. "I mean like the dinosaurs, it might just become non-existent."
High diesel prices trim profits
Five years ago, a day-long offshore charter trip cost $900 here, but it now costs $1,400, plus tip – an increase of more than 50 percent. In other coastal regions of the country the day-rate is even higher, because the captains have to run way off-shore to find fish, pushing up their fuel costs.
The price of diesel fuel is one of the main reason for the rise in charter rates. A year ago, diesel fuel at the boat docks cost about $3.00 a gallon; now it's more than $5.00. For a captain burning 100 to 150 gallons a day, that price increase is substantial.
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| Stephanie Himango/ NBC News |
| Catch of the day in Islamorada, Florida |
Without raising their charter rates, the $500 to $750 per day fuel costs could easily drain away all or most all of their profits. (The costs of bait, ice, mate fees and maintenance to their boats are additional expenses.)
"We think of fuel every day," said Capt. Bill Basset standing next to his boat, the "Sachem," which had just returned from a successful search for marlin and mahi-mahi. "It cuts into profits of the day. I mean, we all have families and we're just trying to survive."
Captains said they've suffered a 15 to 40 percent drop off in charter bookings this year. The wealthier clients are still calling, but increasingly the average person in Miami or Ft. Lauderdale hoping for a fun day on the water with his buddies can no longer afford it. "We're just not getting the big families like we would normally," said Bassett.
Greg Eklund, the captain of the "Cloud Nine," bemoaned a two-fold problem."We're losing our profit margin and we're losing the number of customers that we have."
The danger facing these captains is they could price themselves completely out of business while trying to cover fuel costs. "If you pass on the entire amount of the fuel increase over the last 12 months, even the last 24 months, to your customer, you're not going to have any customers left," said Eklund. "Nobody will be able to afford to go."
What that means, captains said, is that profits are shrinking, sometimes to the point of barely covering operating and living expenses. "The profit margin is gone," said Eklund. "We're just feeding the families and paying the bills."
Saving fuel on the water
To save fuel and lower costs, charter boat captains have had to alter some of their traditional methods. "You're watching your fuel now. You're going out a little bit slower and you're coming home a little bit slower," said Steve Leopold, captain of the "Yabba Dabba Doo" and president of the Islamorada Charter Boat Association.
Leopold also replaced his boat engines with more fuel-efficient ones. "The new technology for the new motors is definitely a plus," he said. "We're probably burning 40 to 50 percent less than we did burn. It's still a lot of fuel, but it's better."
When they are able, captains also try to find fish closer to shore. "Five years ago, you might just pick up and run 30 miles. Well, we don't do that anymore. You'll start looking a little sooner," said Leopold.
Many times, however, long trips just can't be avoided. With paying clients eagerly awaiting a big catch, it all still depends on where the fish are, despite the soaring fuel costs threatening this storied industry.
