Kaichuang cites rising Bering Sea licensing costs for trawler sale

Shanghai, China-based distant-water fishing company Kaichuang Marine International has sold off one of its trawlers, citing the increased costs of operating in waters off Russia.

A subsidiary of state-owned Kaichuang sold the vessel, named the Kai Li, for CNY 72 million (USD 10.4 million, EUR 9.9 million) to Shandong Lanyue Ocean Fishery, another Chinese distant-water player based in Rongcheng, a key port for Chinese vessels operating globally.

Originally built in Germany in 1989, the 120-meter-long Kai Li weighs 7,500 tons. Kaichuang cited an increase in licensing fees for the West Bering Sea and the North Pacific, where the vessel has operated, along with weaker demand for mackerel and pollock in international markets as the main reasons for the vessel’s sale. The company also said in a message to its investors the vessel was aging and outdated, creating rising maintenance costs.

China is home to the world’s largest distant-water fleet, with three state-designated distant-water ports investing heavily in processing facilities and subsidies for vessels and transports of the international catch. China’s reported catch from its vast distant-water fleet totaled 2.2 million tons in 2021, up sharply on the 1.14 million tons reported in 2011.

Kaichuang Marine International owns  Canadian seafood processing firm French Creek Seafood and spent more than USD 60 million (EUR 52.5 million at the time) in 2018 on each of three new fishing vessels. A state-controlled entity with a listed arm, Kaichuang catches and markets mackerel and tuna as well as squid and krill, with significant fleets operating in international waters. 

Kaichuang’s parent company, Shanghai Fishing Group Co., ranked 30th in the World Benchmarking Alliance’s 2018 list of the top 30 most-influential seafood companies. 

Photo courtesy of CCAMLR