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15. Model of fishing vessel basic economic indexes

The operation costs depend on fishing vessel operation variant: for fishing expedition, for independent fishing or other variant of fishery or for the cargo transport purposes as the receivingtransport refrigerator. Considering the seasonal prevalence of industrial fishery and climatic conditions of the seas washing national coast, or the seas which are of interest for fishery outside the national jurisdiction almost marine steel fishing vessels of the various sizes (the small to 400 tonne of displacement, the averages to 1500 tonne and the big), suitable for fishery during winter time in the ice conditions of various intensity are used.
           The following component of the operation costs for a fishing vessel is usually considered:
           1. Expenses for crew salary CR (with the service personnel), which for the majority of the marine steel fishing vessels are approximately equal from 10 to 15 % of operation costs total.
           2. Specific payments for the offbudget funds CSOC are estimated by the acting standard rules and can average be 36 % of the expenses for salary payment with reference to the established parities and operating specifications.
           3. Expenses for crews food supply FED for fishing vessels are approximately equal from 2 to 4 % of operation costs.
           4. Expenses for delivery of crew EXP (transport expenses) make in the range from 1 to 2 % of operation costs.
           5. Expenses for the quota purchase RES (a payment for ocean biological resources use under the rates provided by the tax Code). For the marine companies which operate under tax laws of Russia the payment for ocean biological resources use counting for vessel roughly is in the range from 10 to 20 % of operation costs.
           6. Expenses for compensation of deterioration and for replenishment of fishing tools INST are approximately equal from 3 to 7 % of operation costs.
           7. Expenses for purchase of tare materials, separation and technological materials MS roughly is from 2 to 3 % of operation costs.
           8. Fuel costs FL is in the range from 15 to 25 % of operation costs.
           9. Payment for supply SUP is approximately equal from 5 to 10 % on the average 7 % of expenses for fuel.
           10. Average annual expenses for maintenance and repair RM is determined in the range from 4 to 6 % of operation costs.
           11. General service expenses, the administrative expenses for management and marketing G and also, the administrative (agency) MM and the marketing expenses DS are in total equal from 5 to 10 % of operation costs.
           As a part of fishing vessel operation costs the greatest value is of the following components: the annual expenses for fuel FL, the expenses for crew salary (and the connected expenses) CR+FED+EXP+CSOC and the expenses for the quota purchase (a payment for ocean biological resources use under the rates provided by the tax Code) RES.
           Despite considerable aggregate value of the depreciation charges calculated under the standards of book keeping due to methodological reasons are not subject to inclusion in structure of fishing vessel operation costs and to subtraction from the annual income while determining of the net operating income if value and also one or another efficiency index are evaluated on the basis of the net operating income index.
           Possible other eventual components of operation costs except listed above are small and usually in total do not exceed several percent. The sum of operation costs C total for basic economic model of fishing vessel is determined by the components:

=CR+FED+EXP+CSOC+RES+INST+MS+FL+SUP+RM+G+MM+DS .

(15.1)

It is expedient to develop the algorithm of operation costs calculation for economic model of fishing vessel depending on the basic influencing factors and to group the operation costs taking into account the factors to which number can be referred:
            Factor of crew salary expenses (labor costs) CR to which can be logically referred the specific payments for the offbudget funds CSOC, expenses for crews food supply FED, the transport expenses for crewdelivery EXP which in aggregate (except specific payments for the offbudget funds CSOC defined by standard regulations) are from 20 to 40 % of expenses for crew payment (labor costs), on the average about 30 %;
            Annual expenses for fuel consumption FL to which it is possible to refer the payment for supply SUP from 5 to 10 % of expenses for fuel (on the average it is possible to accept at rate of 7 % of expenses for fuel);
            Expenses for quota purchase RES (payment for ocean biological resources use) should be estimated by the factor of annual catch capacity which is proportional to annual productivity of processed products and inversely proportional to the output relation for tonne of fresh fish, Q / r;
            Other components of the operation costs (except expenses for operating repair and maintenance service) namely: the compensation of deterioration and replenishment of fishing tools INST, the expenses for purchase of tare materials and separation MS, the general industrial expenses G, should be correlated with the factor of annual catch capacity or with expenses for quota purchase (payment for resources).
           The determination of expenses for quota purchase RES (payments for ocean biological resources use) should be made proceeding from the determined fishing capacity and level of expenses for unit quota acquisition.
           Planned catch capacity depends on efficiency of fishery ground for reproduction of ocean biological resources except dependence on the fishing vessel general operational characteristics influencing fresh fish capacity to which, for example, it is possible to refer the trawl area which is in functional dependence on the vessels main engine power which in turn is proportional the volume of water filtered by trawl for time unit and also productivity of fresh fish processing facilities.
           In the Pacific Ocean seas washing the Far East of Russia coast fishing vessels operation for the following catch objects is widespread:
            Fishing of pollack (without caviar) from January till April in the Sea of Okhotsk and in the Bering Sea; cods catch is possible during the same period;
            Fishing of the Okhotsk Sea herring from June till December.
           For the rest of the time different kinds of fishing vessels operation are possible, namely:
            Squid catch within one month in a year during the period from June till October around Northern Kuriles Islands;
            Prawns catch in the Tatar strait, at the offshore of Sea of Japan (the catch is most intensive from April till November, in winter months the catch of shrimp is inefficient as there is a considerable quantity of pollack whitebait the fresh shrimp fracture is);
            Flounder fishing around the western Kamchatka, a halibut in Bering Sea (almost during winter time);
            Cods fishing in the Bering Sea at the coast of Kamchatka and Kuriles during winter time;
            Fishing of salmon species of fish almost in the second part of summer.
           It is clear that efficiency of fishery grounds has seasonal nature. At the same time seasonal catch prevalence possibly is not the factor of fishing vessel economic indexes evaluation, as indexes are determined counting for a year and seasonal catch prevalence has annual periodicity (repeatability).
           It is supposed that the rest of the time within a year after fulfillment of considered kinds of fishery the other kinds of work, for example ship repair, reequipment for the purpose of maximisation of the subsequent income in operation are made or the fishing of other marine production species is done.
           Some effective fishing vessels, according to the project specification, are equipped with replaceable fishing tools replaced seasonally.
           The collecting financial rates for development of ocean biological resources in Russia are defined according the Federal Laws:
            About changes of the second part of the Russian Federation tax Code and some other acts of the Russian Federation 148FZ, November, 11th, 2003, Article 333.3, item 4;
            About changes of Chapter 25.1 of the second part of the Russian Federation tax code 285FZ, November, 29th, 2007; that is, financial charges for fishery of ocean biological resources are taxes.
           According to Article 1 (item 3a) of the Federal Law 285FZ, November, 29th, 2007 the change of financial charges for the ocean biological resources fishing established by subitems 4 and 5 Article 333.3 of the Federal Law 148FZ, November, 11th, 2003 is provided.
           The charges rates for ocean biological resources fishing for subitems 4 and 5 Article 333.3 of the Federal Law 148FZ, November, 11th, 2003 with changes under Article 1 (item 3) of the Federal Law 285FZ, November, 29th, 2007 for Far East seas (the internal sea waters, the territorial sea, an exclusive economic zone of the Russian Federation and the continental offshore of the Russian Federation in the Chukchi, the EastSiberian, the sea of Okhotsk, Bering sea, the Japanese sea and Pacific ocean) by prevailing species of fish and other marine biological species are established: pollack of Sea of Okhotsk 3500 ruble/tonne, pollack of other fishery grounds 2000 ruble/tonne, cod 3000 ruble/tonne, herring of the Bering Sea 400 ruble/tonne, herring of Sea of Okhotsk during the springandsummer period of fishery 400 ruble/tonne, herring of other areas and periods fishery 200 ruble/tonne, halibut 3500 ruble/tonne, rasp perch 750 ruble/tonne, sea perch 1500 ruble/tonne, coal fish 1500 ruble/tonne, tuna 600 ruble/tonne, smelt 200 ruble/tonne, saury 150 ruble/tonne, loach fish 200 ruble/tonne, humpback salmon 3500 ruble/tonne, Siberian salmon 4000 ruble/tonne, Amur autumn Siberian salmon 3000 ruble/tonne, coho fish 4000 ruble/tonne, Chinook fish 6000 ruble/tonne, salmon fish 20000 ruble/tonne, sim fish 6000 ruble/tonne, fish schiposchek 200 ruble/tonne, sturgeon fish 5500 ruble/tonne, Kamchatka crab of the western coast the rate of charges 35 thousand ruble/tonne, Kamchatka crab of the north Okhotsk Sea 35 thousand ruble/tonne, Kamchatka crab of the other fishery grounds 35 thousand ruble/tonne, dark blue crab 35 thousand ruble/tonne, golden king crab 20 thousand Ruble/tonne, crabstrigun from 200 to 35000 ruble/tonne, crab prickly from 13 to 25 thousand ruble/tonne depending on fishery ground, hairy crab from 20 thousand ruble/tonne.
           According to Article 1 (the item 3b) of the Federal Law 285FZ, November, 29th, 2007 charges rates for each object of ocean biological resources use for cityforming and villageforming Russian fisheries companies including fishing artels (collective farms), are established at rate of 15 percent of charges rates provided by items 4 and 5 Article 333.3 (comment, the Federal Law About modification 148FZ, November, 11th, 2003).
           The fishery companies are admitted to be the organizations which carry out fishery (industrial fishing) of ocean biological resources and (or) their primary and subsequent (industrial) processing (including by the rented real assets) and marketing of this production provided that in such organizations the aggregate profit of the goods (kinds of work, services) output the share of the income from output of the trawled (fished) objects of ocean biological resources and (or) fish products process is not less than 70 percent.
           To determine some components (RM, CR, FED, EXP, SOC) of annual operation costs for fishing vessel the recommendations which are considered above concerning cargo vessel can be applied with corresponding updating in the presence of the reasons.
           Concerning other components it is recommended to apply the economic model of fishing vessel presented below. The simplest basic economic model, which can be considered as the basis for estimation and for the further detailed elaboration is considered.
           Operational expenses for fuel and lubricants in case of vessel operation at the fishery ground are determined as:

,

where FL fuel expenditure during the trip; nR average number of round trips within a year; q1 daily running fuel consumption; tR running time of fishing vessel trip.
           Concerning the data specified above and used for determining of operational expenses for fuel two explanatories should be made:
            In case of the logical project of the commercial vessel the fuel consumption for trip corresponds to the specification stock of fuel onboard with the account the necessary stocks;
            Period of fishing vessel operation in expedition between fuel bunkering is meant the round trip in the appraisal.
           The running time for trip (the duration of running from port to fishery ground for example to sea of Okhotsk, Bering sea or to Sakhalin and back) is determined as: tR = 2 × £ / (24 × υS) days, where ? distance to the fishery ground from basing harbour, miles; υS the vessel operational speed, knots.
           The average duration TRF of fishing vessel round trip (between fuel bunkering in expedition) makes

TRF = (tM + tFS + ΔtPFL /PFPR,

where tM general duration of vessel maneuvering in fishery ground for searching of fish conglomeration; tFS duration of fish products hauling before holds filling; Δt duration of fish transfer to cargo vessel and supply receive; PFPR fuel consumption for search of fish, maneuvering and fish catching during the period between catch transfers to the processing ship or to the cargo vessel which is equal PFPR= F(tM) + FR(tFS, Δt), where F = q1×tM fuel consumption for maneuvering, PFR =q2×(tFSt) fuel expenditure in operating at the fishery ground, including catching and fish products transfer, q2 daily fuel consumption for trawling (catching).
           The average quantity of raw fish or seafood F received during round trip between bunkering is equal F = PG×r×PFL /PFPR, where PG the cargo capacity of fishing vessel.
           The number of round trips within a year approximately is detemined as:

,

where TEXP the general duration of annual operational period; tAR the duration of fishing vessel mooring in harbour between trips.
           Concerning the seasonal limitations estimation of annual operational period TEXP duration of marine fishing vessel of the metal hull can follow recommendations which are above considered with reference for commercial transport vessels.
           Average annual productivity of processed products in the fishery ground makes Q = nR×PGPR, where PGPR = F/r = PG×PFL /PFPR the weight of the annual processed fish products (or seafood) by a fishing vessel.
           The actual value of fishing vessel annual productivity is a little less, as nonproductive idle periods due to various reasons are possible.
           The annual income for fishing vessel is equal I=Q×m, where m the income per processed fish products (or seafood) mass unit.

Test questions

1. Structure of fishing vessel operation costs.
            2. Recommendations of fishing vessel operation costs grouping as the components of the total sum.
            3. Rationing of expenses for quota purchases for ocean biological resources use by the tax Code.
            4. Estimation of running time, lay time and duration of fishery as part of the general duration of fishing vessel round trip.
            5. Prevailing ways of fishing vessels use in the Far East of Russia.

 

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