2. Fleet Renovation 
Inefficiency of the present fleet is a serious 
industry problem. Although the U.S. fishing fleet 
is the world’s second largest, about 60 per cent of 
the vessels are over 16 years old and 27 per cent 
have been in service over 26 years.?® Advances in 
fishing technology during the past few years have 
made most of the U.S. fleet economically, if not 
physically, obsolete. 
In the heterogeneous U.S. fishing industry, 
some fisheries, such as tuna and shrimp, have fairly 
modern fleets. Some fleets are antiquated and 
rapidly declining for several reasons. 
The reduction of profits due to reasons of 
foreign competition and/or a declining resource 
stands out among the various reasons for the 
decline of some segments of the fleet. The prices 
U.S. fishermen must charge to make a profit can 
be undercut by foreign fishermen for one or more 
of the following reasons: lower labor costs, more 
advanced technology, and subsidies from their 
governments. In the case of a decreasing resource, 
overfishing and reduced yields soon result from 
the inability of vessels and fishermen to adapt to 
other, underutilized species. This reduction of 
profits tends to diminish the ability of those in the 
fishery to afford technological improvements or 
new vessels of greater utility. 
Where U.S. fisheries are overfished, considera- 
tion should be given to retirement of old vessels as 
new ships are introduced. The new ships, in turn, 
should be designed for ready conversion to other 
fisheries whose stocks are not being depleted. 
Obstacles to this goal are State laws limiting the 
length of vessels for a particular fishery, possibly 
reducing the vessel’s adaptability to other fisheries. 
Such laws should be reconsidered. 
Application of better vessel and gear technol- 
ogy to overfished stocks will result in a greater rate 
of depletion. Fishermen taking such stocks can be 
helped far more through biological research. Such 
research can help ensure that conservation laws 
and treaties are based on scientific findings and 
can assist in determining more abundant stocks. 
Where fisheries are not in danger of depletion 
more modern gear, vessels, and vessel accessories 
such as detection and navigation equipment, new 
propulsion systems, and processing and storage 
26Bureau of Commercial Fisheries. 
facilities should be introduced. This modernization 
may particularly aid in developing the much 
underutilized species as Alaska shrimp, tanner 
crab, and Pacific hake. 
Recommendation: 
U.S. and State Government policies should be 
aimed at upgrading the U.S. fishing fleet through 
introduction of vessels with modern equipment. 
3. High Cost of Vessels and Gear 
An important legal barrier in several fisheries is 
Federal legislation requiring U.S. fishermen to 
use U.S.-built vessels to land fish at a U.S. port. 
Until 1948 the law was not of major consequence 
because the U.S. fisherman often had tariff protec- 
tion and rarely competed in the domestic market 
with foreign fishermen. 
By 1948 domestic inflation contributed to the 
drastic change in the competitive situation. Tariff 
protection became inconsequential in many fish- 
eries and foreign policy prohibited increased pro- 
tection. Imports of fish from allies were encour- 
aged to bolster their dollar earning capacity. 
Lower shipyard costs abroad accentuated the 
vessel cost difference. Rapid rebuilding of war- 
destroyed fleets, often financed through U.S. aid 
programs, resulted in new, more efficient vessels in 
principal competing countries. Improved freezer 
facilities made long distance shipment practical. 
Because of the domestic vessel construction 
law, most U.S. fishermen could not buy an 
efficient new vessel at prices paid by foreign 
competitors. The tuna and shrimp industries, an 
exception, have introduced new technology and 
purchased new vessels in sufficient quantity to 
enable domestic shipyards to become competitive 
with those of foreign countries. 
Congress has grappled with the problem of 
foreign hull restrictions for many years, but varied 
interests have vigorously opposed repeal of the old 
law. A vessel subsidy bill was passed to attempt to 
alleviate the problem but proved ineffective; hence 
the 88th Congress passed a more practical bill that 
remains in effect until June 1969. 
The present vessel subsidy act still has short- 
comings. Statutory limitations on annual expendi- 
tures prevent subsidy payments to all qualified 
applicants. Although the law requires that a 
vessel’s operation will not cause economic hard- 
V-39 
