China’s distant-water fishing industry is reliant on low-wage labor to buttress poor profitability, according to a report from U.K.-based nonprofit Planet Tracker.
“Fishing Thinking: Solving China’s Distant-Water Challenges,” released 30 July, found the impacts of climate change and a World Trade Organization deal to limit subsidies will force the owners of China’s huge commercial fishing fleet to transition to a more sustainable business model.
Planet Tracker drew on data published by the Shanghai Seafarer Salary Index and compared it with data published by companies in their financial reports.
While the index – one of several published by Shanghai Shipping Exchange – suggests that the monthly salary of a crew member on a 22- to 30-crew vessel ranges between USD 2,300 and USD 2,700 (EUR 2,116 and EUR 2,484), the figures reported by Chinese fishing firms are much lower. Zhejiang Ocean Family paid on average CNY 6,556 (USD 903, EUR 852) in monthly wages, while CNFC paid CNY 7,684 (USD 1,075, EUR 998) and Shandong Zhonglu paid CNY 6,377 (USD 892, EUR 829) per month to employees on its vessels, according to public documents filed by each company.
Chinese distant-water fishing companies have, in recent years, turned to lower-wage countries like Indonesia as a source of cheaper labor – a move that has paralleled reports about labor abuse aboard vessels. Planet Tracker said the findings have been corroborated by other NGOs, including the Environmental Justice Foundation. Deckhands on a Chinese vessel typically earn USD 300 (EUR 276) per month, according to EJF.
China’s fleet relies on government subsidies for profitability, according to Planet Tracker, with subsidies currently accounting for half of the 14 percent profit margin on average enjoyed by the Chinese distant-water fleet. Because of that, China’s tuna longlining and squid-jigging would not be profitable if companies paid crew members Chinese index standard salary, Planet Tracker reported. If the 2022 WTO Agreement on Fisheries Subsidies is ratified, it may force China to end its subsidization of its fleet, placing the business model of its distant-water fishing industry in jeopardy.
Planet Tracker suggested China could issue a CNY 5.5 billion (USD 770 million, EUR 715 million) blue sustainability-linked sovereign bond to pay for a transition to 100 percent monitoring and traceability onboard its distant-water fishing fleet.
