FISHERY BULLETIN: VOL. 74, NO. 2 



and the annual landings per vessel were 31,700 

 pounds of shrimp (heads-off). However, in the 4- 

 yr period, 1970-73, the average vessel exerted 

 about 1.68 units of effort in a day fished and the 

 annual landings were only 28,900 pounds (heads- 

 off). The average length of the vessel operating in 

 the Gulf also increased over time (Nichols and 

 Griffin 1975). Thus, as additional effort has been 

 added to the Gulf of Mexico shrimp fishery — by 

 increasing the number of vessels and/or the 

 average size of the vessel — the total pounds 

 landed have been divided between more and 

 more units of effort. 



From these figures it is apparent that the 

 average Gulf of Mexico shrimp vessel has been 

 increasing in size and relative fishing power and 

 the annual landings per vessel have declined. 

 Due to the lower investment levels and lower 

 operating costs of smaller, less powerful vessels it 

 follows that those smaller vessels could produce a 

 pound of shrimp at a lower unit cost than could a 

 larger, more powerful vessel if both were fishing 

 the same or equally abundant fishing grounds. 

 However, two distinctions and/or disadvantages 

 of the smaller vessels compared to larger vessels 

 must be noted here. First, as discussed earlier, 

 shrimp is not a homogeneous product, and larger 

 shrimp command higher ex- vessel prices than do 

 smaller shrimp. Because the larger shrimp are 

 usually associated with deeper waters, farther 

 out in the Gulf, a smaller vessel with less 

 capacity both for deepwater trawling and for 

 holding fuel and shrimp is at a disadvantage 

 compared with a larger vessel because of that 

 depth and distance from shore. 



The second distinction, and associated with the 

 first, is the fact that larger vessels are better able 

 to operate in and cope with rougher seas and the 

 frequent storms in the Gulf than are smaller 

 vessels. Therefore, the smaller vessels would 

 either be forced to trawl closer to shore for 

 smaller, less valuable shrimp, or for a given 

 period of time in the deeper fishing grounds with 

 typical weather conditions, the smaller vessels 

 would not be able to realize as many actual 

 fishing hours as a larger vessel operating in the 

 same waters during the same period of time. 



Comparison of Classes 



Table 2 shows a summary of the costs and 

 returns, equity requirements, payback period, 

 and internal rate of return for the five classes of 

 shrimp vessels operating in the Gulf of Mexico in 

 1973 (a more detailed break down of cost is 

 available from the authors). Class I vessels 

 received the highest price per pound, $2.03, for 

 the shrimp landed but produced 5,500 pounds 

 less shrimp than the smaller class II vessels. 

 Class I vessels also had the highest levels of 

 variable costs not proportional to catch, $45,152, 

 the highest fixed costs, $31,906, and the highest 

 total costs, $108,291, of any of the general classes. 

 These cost relationships were to be expected 

 since the larger steel vessels should have the 

 highest initial investment requirements and 

 operating costs. Due to low production and high 

 cost, these vessels averaged the greatest loss for 

 the year, $20,704, and payback did not occur. The 

 internal rate of return on investment was 

 negative. 



Table 2. — Summary of costs and returns information, net present value analysis, and pay 

 back period for five classes of shrimp vessels operating in the Gulf of Mexico in 1973. 



'Does not occur. 



^Does not occur through operations — payback in the eighth year is due to sale of the vessel 



^Less than 0%. 



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