Recent increases in global oil prices driven by conflict in the Gulf are hurting the controversial distant-water fishing sector, and reigniting discussions around the transition to greener fuels.
Fuel is a huge cost for fishing boats. For distant water fleets that travel far from their home ports, increases can have a massive impact on profitability.
According to data released by the China Distant-Water Fisheries Association, fuel prices in major fishing grounds have risen by 40-50% since the US and Israel launched major combat operations against Iran in February. At the same time, the transportation fees set by shipping companies are creeping up, from around RMB 2,000 per tonne to RMB 2,500.
The association recently held a meeting in the city of Zhoushan on China’s east coast to discuss the issue. Industry representatives noted offshore refuelling services have long been dominated by a small number of overseas suppliers. They called for domestic oil companies to build a more “secure and self-reliant” system. Participants also urged the government to offer temporary support to help offset the impact of fuel prices.
While fishers are seeking more stable fossil fuel prices in the near term, entirely different fuels may offer an alternative future.
Late last year, a senior executive in the marine division of China’s CATL, the world’s largest battery maker, predicted transoceanic electric vessels could become viable within three years. The company has been expanding its presence in ship electrification, and already deployed battery systems on around 900 comparatively smaller vessels – those operating in coastal, port and inland waterway areas.
CATL chairman Robin Zeng has previously described the advances made to both the energy density and lifecycle performance of its lithium iron phosphate batteries. Such developments could be key to long-distance electric maritime travel.
Beyond fuel costs, industry representatives at the Zhoushan meeting also highlighted rising compliance pressures, including “higher international obligations and stricter domestic and overseas regulatory enforcement”. China operates the world’s largest distant-water fishing fleet, and its activities have a significant impact on marine ecosystems. As such, the country’s compliance challenges relate to issues such as illegal, unreported and unregulated (IUU) fishing, resource overexploitation, underreported catches, competition with local fisheries, and the industry’s impact upon coastal communities.
China has accepted the World Trade Organization’s Agreement on Fisheries Subsidies, which aims to curb harmful subsidies linked to illegal and excessive fishing. The country has also ratified the Port State Measures Agreement, which seeks to prevent IUU fishing from entering supply chains, by establishing port inspections and catch traceability.
As regulatory requirements tighten, policy adjustments will be needed to support the sector’s transition. A 2024 report by a non-profit financial think-tank suggested Chinese subsidy reforms, which could shift support for high risk high-seas fishing to more compliant and sustainable operations instead. It also recommends improving transparency, and linking compliance performance to policy incentives such as quotas. The authors say this would create a more stable operating environment for responsible fishers.
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