Price of fuel - Impact on Charter Business

[Sterling]

I saw this article this morning and thought it was worth sharing here. I'm sure many members of this board know the guys interviewed and for that matter I think some of them are members as well. Let's hope, kick and scream that this fuel fiasco gets worked through and we can start paying competitive rates again...sometime soon. You can bet BP's news today, that they need to take down some Alaska pipes, will not help in the short term.

Here's the story.

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A Friday afternoon in early August should have found charter boat captain Bill Bittmann making his way back to South Jersey Marina in Cape May after a long day of deep-sea fishing. Or maybe even still out at sea on an overnight or two-day trip.

Instead, Bittmann spent the day doing maintenance on his 44-foot Henriques charter boat, “Top Shelf.”

And the next day looked like it would be more of the same.

“On a Saturday in August, I should be out tuna fishing,” Bittmann said. “As of right now, I have nothing booked.”

The increasing cost of fuel is having negative effects on most fishing charter businesses. But canyon charters like Bittmann's are taking the brunt.

Better known as canyon runs, these deep-sea fishing expeditions take fishermen more than 70 miles off the New Jersey coast to fish in the underwater canyons for tuna and marlin.
These runs, which can last anywhere from 12 hours to two days, are usually profitable for charter captains. But high fuel prices are making these long trips more of a liability than a commodity.

As of Friday, diesel fuel was selling for about $2.90 per gallon.

“You figure it takes three to four hours to the canyon, and that makes it a minimum of 80 gallons (of fuel) out and 80 gallons in,” said Carl Sheppard, captain of the “Star Fish” charter boat out of LBI Fishing Charters in Beach Haven. “Multiply that times the fuel prices and you have to make a decision if it's worth it.”

Many local captains are finding that it's not.

“I'm down about 30 percent since last year,” Bittmann, a 29-year charter veteran, said. “The rise in fuel prices has forced us to raise our prices.”

And the price hike is causing fishermen to give a day of deep-sea fishing a second thought.

In 2005, Bittmann charged $17,000 for a 12-hour trip. This year, he charges about $18,000.

“You tell (the customers) $18,000 and it really rocks their clock,” Bittmann said. “They don't want to just come down and do it anymore.”

Bittmann says he is getting fewer calls from new customers who want to experiment with a fishing trip to a canyon.

“I'm relying on my regulars,” Bittmann said. “Almost all of my trips comes from guys who have been coming here for a while.”

Some charter captains try to continue accommodating their customers by coming up with inventive ways to keep the prices down.

Trey Rhyne, owner of Over Under Adventures out of Avalon, has seen prices for overnight canyon runs on his charter boat “Over Under” rise almost $1,500 during the past few years. In order to keep the price down, Rhyne has experimented with slowing down the trip.

“We go a little bit slower and it allows us to burn less fuel and not raise the price so much,” Rhyne said. “It seems to be a good compromise for the customer. They get to sleep an extra half-hour on the way out.”

Rhyne says he would rather take his time going out there than cheat his passengers out of the fishing trip they paid for.

“There are certain boats who aren't going to go out as far as they need to to catch the fish,” Rhyne said. “Because it means if they go that extra 10 miles, that's another 50-60 gallons and another $150-200.”

Joe Lechner, who parks his charter boat “Slammer,” next to Bittmann's at South Jersey Marina, says that canyon runs are becoming less of an activity for avid fishermen and more a rich man's leisure sport.

“The blue collar worker is getting shut out,” Lechner said as he cleaned his boat after a 12-hour trip. “This group that just went out. All lawyers.”

The change in price has changed Lechner's schedule as well.

“It used to be that Saturdays and Sundays were the two days that were always booked because that's when blue collar guys are off,” Lechner said. “Now those are the open dates and I get a lot of trips on the weekdays because that's when the corporate guys can go.”

But business is business. And canyon charter captains are learning to take what they can get as the numbers on the fuel pumps keep rolling up.

Most captains try to take advantage of the increase in shorter fishing trips. Sheppard says his most popular trips are the half-day trips, which are $70 per person — 12 people maximum — for four hours compared to several hundred dollars for a 12-hour trip.

Bittmann also is resigned to the fact that he must either take the trips that will pay the bills, or spend more afternoons just fixing up his boat.

“I'm taking on sight-seeing tours,” Bittmann said with a grimace. “Right now, I'm getting ready to take a family of five on a trip around the island.”


To e-mail Courtney McCann at The Press:

[adamarlin]

$18,000 for a 12-hour trip might even rock Bill Gate's clock.

[Tuna Taxi]

Yeah, $18,000 for a trip would certainly be a reason he's not booked.

I'm sure there is an extra zero on there.

I wish I thought there was an end in sight for the rising fuel prices. It seems to me that if all refiners are selling all the fuel they refine, and sometimes running a little short, we no longer have competition. I have a feeling it is going to get worse before it gets better (if it ever does!)

Now we just need some egg-head to figure out how to extract hydrogen from sea water and burn it in an engine that will fit in a boat. Once we can do that, we will be able to cut the umbilical cord between us & the oil companies.

[hedjug]

Think back just 20 or so years ago. I was a mate in SIC on one of the 5 headboats that were pretty much full everday with "blue collar" workers going out to catch whatever. Energy prices were high & canyon runners were few & far between. It was considered a "rich mans" game back then, and it's becoming that way again. Then, we got spoiled in the late 80's & 90's when fuel was cheap & the economy was strong. The average joe could afford a trip or two to the canyon, or even his own boat for that matter.

I think the days of full partyboats bluefishing at 2FB of the Jackspot are not far off.

[BBunker]

I believe the prices are $1700.00 to $1800.00! THERE'S A TYPO THERE! I've known Capt. Bill for quite a while & there's NO WAY a charter is that much!

CMON NOW!

[BBunker]

Think back just 20 or so years ago. I was a mate in SIC on one of the 5 headboats that were pretty much full everday with "blue collar" workers going out to catch whatever. Energy prices were high & canyon runners were few & far between. It was considered a "rich mans" game back then, and it's becoming that way again. Then, we got spoiled in the late 80's & 90's when fuel was cheap & the economy was strong. The average joe could afford a trip or two to the canyon, or even his own boat for that matter.

I think the days of full partyboats bluefishing at 2FB of the Jackspot are not far off.

Spent 20yrs on the Sea Star Fleet out of Cape May. I have seen MAJOR changes over the last 10yrs. Yep, It ain't the same!

[MakoMike]

It hurts!

[adamarlin]

I believe the prices are $1700.00 to $1800.00! THERE'S A TYPO THERE! I've known Capt. Bill for quite a while & there's NO WAY a charter is that much!

CMON NOW!

I know, I was just kidding Bunk.

[Sterling]

Yeah, looks like they had some math problems in writing the article. I see that in a couple of places but the fundamental story is certainly concerning.

If Charter's are slowing that much, and I believe rec's are also slowing, what about all the related economy. Boat builders, marine services, captains, mates, etc. This massive increase in fuel costs may start doing some permanent damage.

The article is out of the Press of Atlantic City NJ. Maybe the print version will be cleaned up.

[Bob ECT]

Think back just 20 or so years ago. I was a mate in SIC on one of the 5 headboats that were pretty much full everday with "blue collar" workers going out to catch whatever. Energy prices were high & canyon runners were few & far between. It was considered a "rich mans" game back then, and it's becoming that way again. Then, we got spoiled in the late 80's & 90's when fuel was cheap & the economy was strong. The average joe could afford a trip or two to the canyon, or even his own boat for that matter.

I think the days of full partyboats bluefishing at 2FB of the Jackspot are not far off.

But this time there will be nothing for the Head Boats to catch. The regs will shut them out of the inshore fisheries.