German fishery has been caught in an escalating economic squeeze as surging marine fuel costs, driven by ongoing geopolitical conflicts in the Middle East and energy market volatility, threaten to bankrupt fleets.
As the U.S.-Israeli war against Iran continues, the global energy market is going through wild fluctuation, influencing various industries, including fishery.
Hamburg, an important port city in Germany, is also seeing its fishery and seafood production affected due to the cost hike in diesel, transportation and cold chain operation.
Fuel cost takes a big part of fishery production. For fishing boats which need to work offshore for a long time, higher fuel price means more costs in each voyage.
"The prices of raw materials have been rising these days. For example, I used to spend 50 euros for gas every day, but now it costs me 100 euros. The impact of the conflict is everywhere, even on fishermen, as they will need gas to go fishing. In the end, the cost of products is up. That's the case and it is not good. War is the worst thing that human can create," said a local fisherman.
Meanwhile, the operation of cold chain storage and logistics is also facing pressure from the higher fuel prices, as seafood has to be delivered to other places in a cold temperature. From equipment to transportation, costs are piling up.
"We're definitely feeling the impacts of the rising cost, from procurement, to fueling our vehicles, and of course, the labor cost. Employees think their living cost has increased and they wish to have higher wages. So, whether on the procurement side or facing customers, we have truly felt the impacts," said another local fisherman.
Some local vendors worry that the climbing energy cost will squeeze their profit margins if the conflict continues, which will make their business even more struggling.
German fishery caught in escalating economic squeeze as marine fuel costs threaten to bankrupt fleets
