Nor-Fishing: Cod, haddock H&G prices set firm, despite issues for Chinese processors


Undercurrent News is blogging this week from the Nor-Fishing trade show, held every two years in Trondheim, Norway. 

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Aug. 22, 2018 12:28 pm




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Cod, haddock H&G prices set firm, despite issues for Chinese processors 

The prices for headed and gutted (H&G) cod and haddock from Norway and Russia are set firm, even though Chinese processors are warily buying “hand to mouth”, one well-placed source told Undercurrent News

“There is a bit of an issue with the smaller [1-2.5 kilogram] fish to China, with the US situation,” he said, referring to the prospect of tariffs of as high as 25% on seafood sales to the US, in the escalating trade war between the two superpowers. 

“The Chinese processors are buying hand-to-mouth.” Also, as Undercurrent reported earlier in the week, processors in Dalian are having financial issues. They are more dependent on the US market than those in Qingdao, so doubly exposed, he said. 

However, with whitefish demand good globally, prices for cod H&G are still in the $4,400-$4,600 per-metric-ton range, depending on the size and delivery terms, he said. Haddock H&G is still around $3,550/t, also. 

It looks like there will be less fish available at the end of the year, as the Russians are ahead on catching he said. 

“There is much less of the Russian quota to catch this year compared to last year. Most of the Russian quota will be fished in the next two-three months. There will be some H&G at the end of the year, not much in the way of fillets. Norway has more of the quota to catch,” he told Undercurrent

On Aug. 1, there was 60,000t less fish to catch this year than the same time last year. He reported some market resistance to the prices, especially for the 3+ kg fish. 

“However, with the quota set to come down next year, there is going to be less fish,” he said. As a result, the outlook is for firm prices for both cod and haddock.”>

The prices for headed and gutted (H&G) cod and haddock from Norway and Russia are set firm, even though Chinese processors are warily buying “hand to mouth”, one well-placed source told Undercurrent News

“There is a bit of an issue with the smaller [1-2.5 kilogram] fish to China, with the US situation,” he said, referring to the prospect of tariffs of as high as 25% on seafood sales to the US, in the escalating trade war between the two superpowers. 

Read more

“The Chinese processors are buying hand-to-mouth.” Also, as Undercurrent reported earlier in the week, processors in Dalian are having financial issues. They are more dependent on the US market than those in Qingdao, so doubly exposed, he said. 

However, with whitefish demand good globally, prices for cod H&G are still in the $4,400-$4,600 per-metric-ton range, depending on the size and delivery terms, he said. Haddock H&G is still around $3,550/t, also. 

It looks like there will be less fish available at the end of the year, as the Russians are ahead on catching he said. 

“There is much less of the Russian quota to catch this year compared to last year. Most of the Russian quota will be fished in the next two-three months. There will be some H&G at the end of the year, not much in the way of fillets. Norway has more of the quota to catch,” he told Undercurrent

On Aug. 1, there was 60,000t less fish to catch this year than the same time last year. He reported some market resistance to the prices, especially for the 3+ kg fish. 

“However, with the quota set to come down next year, there is going to be less fish,” he said. As a result, the outlook is for firm prices for both cod and haddock.

Aug. 21, 2018 5:04 pm




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Work starts in Turkey on ‘more flexible’ Ervik Havfiske whitefish longliners 

Work has started on two longliners Ervik Havfiske Group has ordered from Tersan Shipyard, executives with the company told Undercurrent News

This is only a few months after the Turkish yard delivered two more vessels for the Norwegian fishing firm’s toothfish joint venture, which are catching well, said the company’s Olav Steimler.

With the whitefish vessels Ervik has ordered, which will be delivered at the end of 2019 and the start of 2020, “we’re going back to basics”, Steimler told Undercurrent News

The vessels, based on a design from Norwegian firm Marin Teknikk, will have a new style of hauling system, which will allow the company to retain more of its catches. 

Also, they will be around 50 meters long, smaller than Froyanes, the last vessel the company had built for cod, haddock and other whitefish, which will mean they are “more flexible”, he said. 

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“You have more of your eggs in one basket with a larger vessel,” Steimler told Undercurrent

The two new vessels — named Froyanes Junior and Vestkapp — will focus on headed and gutted fish, rather than frozen-at-sea fillets, which the larger-sized Froyanes can produce on its factory. 

Steimler and Robert Ervik, fleet manager with the company and son of co-founder Stig, also praised the Turkish yard for its reliability and build quality. 

“It’s hard to believe, with what a great job they do, that the first fishing vessel they had ever done was Froyanes in 2011,” said Steimler.”>

Work has started on two longliners Ervik Havfiske Group has ordered from Tersan Shipyard, executives with the company told Undercurrent News

This is only a few months after the Turkish yard delivered two more vessels for the Norwegian fishing firm’s toothfish joint venture, which are catching well, said the company’s Olav Steimler.

Read more

With the whitefish vessels Ervik has ordered, which will be delivered at the end of 2019 and the start of 2020, “we’re going back to basics”, Steimler told Undercurrent News

The vessels, based on a design from Norwegian firm Marin Teknikk, will have a new style of hauling system, which will allow the company to retain more of its catches. 

Also, they will be around 50 meters long, smaller than Froyanes, the last vessel the company had built for cod, haddock and other whitefish, which will mean they are “more flexible”, he said. 

gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw== - Nor-Fishing: Cod, haddock H&amp;G prices set firm, despite issues for Chinese processors

“You have more of your eggs in one basket with a larger vessel,” Steimler told Undercurrent

The two new vessels — named Froyanes Junior and Vestkapp — will focus on headed and gutted fish, rather than frozen-at-sea fillets, which the larger-sized Froyanes can produce on its factory. 

Steimler and Robert Ervik, fleet manager with the company and son of co-founder Stig, also praised the Turkish yard for its reliability and build quality. 

“It’s hard to believe, with what a great job they do, that the first fishing vessel they had ever done was Froyanes in 2011,” said Steimler.

Aug. 21, 2018 1:59 pm




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Award-winning designer: More fishing vessels will order LNG power systems 

Salt Ship Design and pelagic fishing company Liegruppen Fiskeri won the innovation award at this year’s Nor-Fishing on Monday for an upcoming vessel that will be 95% powered by liquefied natural gas (LNG). 

Tor Henning Vestbostad, sales director and one of the co-founders of Salt, told Undercurrent the vessel would be the first of its kind in the fishing sector, but not the last. “I think there will be more,” he said. 

“The higher upfront investment is the only drawback, really. It’s more environmentally friendly and the operating costs are lower.” The new vessel for Liegruppen, Libas, is being built at the Cemre Shipyard in Turkey and will be 86×17.80 meters. 

The ship will replace a vessel with the same name, sold to Iceland late in 2016. The new Libas will be delivered in the first quarter of 2020. Generally, it costs around €5 million extra to fit an LNG system, he said, declining to comment on how much the total investment from Liegruppen is. 

gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw== - Nor-Fishing: Cod, haddock H&amp;G prices set firm, despite issues for Chinese processors

However, for Norwegians owners, this cost can be partially offset by subsidies from the government for opting for an environmentally friendly system. The LNG costs are around 15% lower than a conventional system, he said. 

Liegruppen has two other vessels. Salt’s Vestbostad declined to comment on whether the company would look to replace these with similar designs. Norway has a good logistics system for the delivery of LNG, but this is also more commonplace elsewhere, meaning there is the possibility owners from outside the country could opt for this system, said Vestbostad. 

When natural gas is cooled to -162 degrees, it passes from a gas phase to a liquid phase, also known as LNG. The cooling means that the volume of the gas is reduced to about 1/600 of the volume it has in the gas phase, according to a press release on the plan. 

gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw== - Nor-Fishing: Cod, haddock H&amp;G prices set firm, despite issues for Chinese processors

This means that the gas is both energy efficient and easy to transport. Liquid gas is not toxic and cannot burn. The main engine of the new Libas is dimensioned for the power requirements for propulsion and for electrical power requirements during normal operation. 

The one auxiliary engine can also switch between LNG and diesel, and this complements the main engine during some work tasks and in bad weather. The effect of the innovative systems on board is intended to reduce total fuel consumption by about 15%. 

In addition, NOx emissions will be reduced by around 80% and CO2 emissions by 24%. 

Dual fuel-machinery 

The cooperation between Liegruppen and Salt has resulted in a ship that will have both diesel and fuel systems for natural gas. According to Liegruppen, this will enable Libas to make longer trips in areas where there is no possibility of LNG bunkering. 

The gas storage tank is dimensioned so that a total of 95% of the consumption, based on today’s operating pattern, will be covered by natural gas. The main engine, which is diesel powered, is replaced by a dual-fuel main engine with equivalent engine power in the new Libas. 

According to the developers, this is designed to cover both the need for propulsion and electric power during normal operation of the ship. 

Hybrid battery system 

A hybrid battery system will also be installed with battery packs on board. The energy content of the battery pack will be 500 kWh. 

The battery is designed for the ship’s typical operating profile, and is equipped with infrastructure that provides short response time and adequate leveling of short-term load variations, called “peak shaving”. 

These factors specifically reduce fuel consumption through more stable and optimal operation of the main engine, said Salt and Liegruppen. An essential feature of the combination of natural gas and hybrid battery is that a dual-fuel engine has a longer response time than a diesel engine, they added. 

This can be a challenge during fishing and maneuvering, when fast load control is needed, said Salt and Liegruppen. Response time is a disadvantage that has previously been visualized in studies of natural gas operation of fishing vessels. 

The hybrid battery solution enables “boosting” via an electric motor, which will get power out of the battery and thus eliminates the problem, said Salt and Liegruppen. 

The battery pack, in combination with the LNG boiler, also provides the ability to remain at the dock for up to ten hours, without the engines running or using land-based electricity, they said. 

“When the ship is in port on land-based electricity, one can avoid engine operation, since the battery pack will support any energy requirements such as crane operation or the like.” Libas will also be equipped with electric winches and fish pumps to reduce energy consumption. The surplus energy from the winches will be used as energy consumption on board or to charge the batteries.”>

Award-winning designer: More fishing vessels will order LNG power systems 

Salt Ship Design and pelagic fishing company Liegruppen Fiskeri won the innovation award at this year’s Nor-Fishing on Monday for an upcoming vessel that will be 95% powered by liquefied natural gas (LNG). 

Tor Henning Vestbostad, sales director and one of the co-founders of Salt, told Undercurrent the vessel would be the first of its kind in the fishing sector, but not the last. “I think there will be more,” he said. 

Read more

“The higher upfront investment is the only drawback, really. It’s more environmentally friendly and the operating costs are lower.” The new vessel for Liegruppen, Libas, is being built at the Cemre Shipyard in Turkey and will be 86×17.80 meters. 

The ship will replace a vessel with the same name, sold to Iceland late in 2016. The new Libas will be delivered in the first quarter of 2020. Generally, it costs around €5 million extra to fit an LNG system, he said, declining to comment on how much the total investment from Liegruppen is. 

gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw== - Nor-Fishing: Cod, haddock H&amp;G prices set firm, despite issues for Chinese processors

However, for Norwegians owners, this cost can be partially offset by subsidies from the government for opting for an environmentally friendly system. The LNG costs are around 15% lower than a conventional system, he said. 

Liegruppen has two other vessels. Salt’s Vestbostad declined to comment on whether the company would look to replace these with similar designs. Norway has a good logistics system for the delivery of LNG, but this is also more commonplace elsewhere, meaning there is the possibility owners from outside the country could opt for this system, said Vestbostad. 

When natural gas is cooled to -162 degrees, it passes from a gas phase to a liquid phase, also known as LNG. The cooling means that the volume of the gas is reduced to about 1/600 of the volume it has in the gas phase, according to a press release on the plan. 

gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw== - Nor-Fishing: Cod, haddock H&amp;G prices set firm, despite issues for Chinese processors

This means that the gas is both energy efficient and easy to transport. Liquid gas is not toxic and cannot burn. The main engine of the new Libas is dimensioned for the power requirements for propulsion and for electrical power requirements during normal operation. 

The one auxiliary engine can also switch between LNG and diesel, and this complements the main engine during some work tasks and in bad weather. The effect of the innovative systems on board is intended to reduce total fuel consumption by about 15%. 

In addition, NOx emissions will be reduced by around 80% and CO2 emissions by 24%. 

Dual fuel-machinery 

The cooperation between Liegruppen and Salt has resulted in a ship that will have both diesel and fuel systems for natural gas. According to Liegruppen, this will enable Libas to make longer trips in areas where there is no possibility of LNG bunkering. 

The gas storage tank is dimensioned so that a total of 95% of the consumption, based on today’s operating pattern, will be covered by natural gas. The main engine, which is diesel powered, is replaced by a dual-fuel main engine with equivalent engine power in the new Libas. 

According to the developers, this is designed to cover both the need for propulsion and electric power during normal operation of the ship. 

A hybrid battery system will also be installed with battery packs on board. The energy content of the battery pack will be 500 kWh. 

The battery is designed for the ship’s typical operating profile, and is equipped with infrastructure that provides short response time and adequate leveling of short-term load variations, called “peak shaving”. 

These factors specifically reduce fuel consumption through more stable and optimal operation of the main engine, said Salt and Liegruppen. An essential feature of the combination of natural gas and hybrid battery is that a dual-fuel engine has a longer response time than a diesel engine, they added. 

This can be a challenge during fishing and maneuvering, when fast load control is needed, said Salt and Liegruppen. Response time is a disadvantage that has previously been visualized in studies of natural gas operation of fishing vessels. 

The hybrid battery solution enables “boosting” via an electric motor, which will get power out of the battery and thus eliminates the problem, said Salt and Liegruppen. 

The battery pack, in combination with the LNG boiler, also provides the ability to remain at the dock for up to ten hours, without the engines running or using land-based electricity, they said. 

“When the ship is in port on land-based electricity, one can avoid engine operation, since the battery pack will support any energy requirements such as crane operation or the like.” Libas will also be equipped with electric winches and fish pumps to reduce energy consumption. The surplus energy from the winches will be used as energy consumption on board or to charge the batteries.

Aug. 21, 2018 10:07 am




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More entrants for annual innovation award 

The Nor-Fishing Foundation, the organizers of the show, received 14 applications for this year’s innovation award, five more than for the last show in 2016. 

This year, much focus is on safety and reduction of harmful effects on the environment, both in the ocean and the air, and for crewmembers. 

There is also a focus on technology that will contribute to sustainable fisheries. The Jury found that several of the applications show a high degree of innovation that can contribute to a sound development of the industry. The award will be presented later on day one of the show. 

The three finalists are Liegruppen Fiskeri/Salt Ship Design; Sago Solutions; and Sto Technology. 

See more on each application below. 

Liegruppen Fiskeri/Salt Ship Design 

Fishing firm Liegruppen Fiskeri and Salt Ship Design are in the running having what the organizers say is a high-tech, cost-effective and environment-friendly fishing vessel. 

The vessel will be delivered during the first quarter of 2020. "Experience from this project may have great importance for the development of environment friendly vessels in Norway and internationally in the future," said the press release. 

The vessel will be the very first fishing vessel powered by a main engine running 95% on LNG, but it can also run on diesel. 

The main engine is dimensioned for the power needs for propulsion and electrical power form normal operations. One of the auxiliary engines can also switch from LNG to diesel and supplement the main engine during period of bad weather. 

The core of the hybrid battery system is a battery bank with a maximum energy content of 500 kWh. By using electrically powered deck machinery, significant reduction of fuel consumption will be achieved. A gas-powered boiler in combination with heat recovery will also contribute to this. Turbines in the tanks that are in contradiction with the ship’s movements will generate energy absorbed in batteries. 

The effect of the systems is intended to reduce fuel consumption by approx. 15%, NOx emissions by around 80% and CO2 emissions by 24%, according to the press release. 

Sago Solutions

Sago Solutions has developed a catch-securing system for line fishing, especially for use in catching toothfish in the South Sea. 

In this fishery, there is a problem with whales eating the fish on the line when it is hauled to the surface.

"This problem may be so great that it threatens sustainability in parts of the industry," according to the press release. 

In particular, sperm whales and killer whales can in some waters steal about 75% of the catch. The same problem also exists in connection with, for example, the Greenland halibut fishery in the Vesteralen region in Norway. In addition to the financial loss, this also generates environmental challenges. 

The fleet must spend longer time filling its quotas, resulting in increased emissions in vulnerable areas. Whales get access to large amounts of food without active hunting, and for the killer whale, toothfish is not part of its natural diet, as they live at different depths. The total consequences of this problem are still not fully understood. 

Sago Extreme is a large aluminum structure that protects the fish on the line. The line is fed through the aluminium structure and collects the catch already on the seabed. By-catch and small fish escape through holes in the structure. 

Sago Extreme can be dimensioned for different fishing operations. Each Sago Extreme has a given stretch of rope that ends in a stopper that makes the aluminium structure come with ropes up to the surface and hoisted aboard the crane. 

Sto Technology 

Sto Technology’s  innovation is a catch management system that aims to eliminate most of the quality challenges associated with traditional trawl fishing. 

The project, called TRAWL 2.0, also aims at significant improvements in the environment, efficiency, HSE and animal welfare, as well as optimized resource utilization and increased value creation on board, according to the press release. "The company is developing completely new and patented technology that allows for a gentle recovery of the catch from the trawl without interrupting the actual trawling operation."

Thus, the trawler will achieve a far more continuous and consistent raw material access than today without the traditional quality problems occurring. 

In addition to recovering the catch, the catch management system can also be used for fish finding and trawl surveillance. The company considers the technology leap as disruptive, with major implications for future vessel and process optimization, new operating modes and business models, as well as market development. “>

The Nor-Fishing Foundation, the organizers of the show, received 14 applications for this year’s innovation award, five more than for the last show in 2016. 

This year, much focus is on safety and reduction of harmful effects on the environment, both in the ocean and the air, and for crewmembers. 

Read more

There is also a focus on technology that will contribute to sustainable fisheries. The Jury found that several of the applications show a high degree of innovation that can contribute to a sound development of the industry. The award will be presented later on day one of the show. 

The three finalists are Liegruppen Fiskeri/Salt Ship Design; Sago Solutions; and Sto Technology. 

See more on each application below. 

Liegruppen Fiskeri/Salt Ship Design 

Fishing firm Liegruppen Fiskeri and Salt Ship Design are in the running having what the organizers say is a high-tech, cost-effective and environment-friendly fishing vessel. 

The vessel will be delivered during the first quarter of 2020. “Experience from this project may have great importance for the development of environment friendly vessels in Norway and internationally in the future,” said the press release. 

The vessel will be the very first fishing vessel powered by a main engine running 95% on LNG, but it can also run on diesel. 

The main engine is dimensioned for the power needs for propulsion and electrical power form normal operations. One of the auxiliary engines can also switch from LNG to diesel and supplement the main engine during period of bad weather. 

The core of the hybrid battery system is a battery bank with a maximum energy content of 500 kWh. By using electrically powered deck machinery, significant reduction of fuel consumption will be achieved. A gas-powered boiler in combination with heat recovery will also contribute to this. Turbines in the tanks that are in contradiction with the ship’s movements will generate energy absorbed in batteries. 

The effect of the systems is intended to reduce fuel consumption by approx. 15%, NOx emissions by around 80% and CO2 emissions by 24%, according to the press release. 

Sago Solutions

Sago Solutions has developed a catch-securing system for line fishing, especially for use in catching toothfish in the South Sea. 

In this fishery, there is a problem with whales eating the fish on the line when it is hauled to the surface.

“This problem may be so great that it threatens sustainability in parts of the industry,” according to the press release. 

In particular, sperm whales and killer whales can in some waters steal about 75% of the catch. The same problem also exists in connection with, for example, the Greenland halibut fishery in the Vesteralen region in Norway. In addition to the financial loss, this also generates environmental challenges. 

The fleet must spend longer time filling its quotas, resulting in increased emissions in vulnerable areas. Whales get access to large amounts of food without active hunting, and for the killer whale, toothfish is not part of its natural diet, as they live at different depths. The total consequences of this problem are still not fully understood. 

Sago Extreme is a large aluminum structure that protects the fish on the line. The line is fed through the aluminium structure and collects the catch already on the seabed. By-catch and small fish escape through holes in the structure. 

Sago Extreme can be dimensioned for different fishing operations. Each Sago Extreme has a given stretch of rope that ends in a stopper that makes the aluminium structure come with ropes up to the surface and hoisted aboard the crane. 

Sto Technology 

Sto Technology’s  innovation is a catch management system that aims to eliminate most of the quality challenges associated with traditional trawl fishing. 

The project, called TRAWL 2.0, also aims at significant improvements in the environment, efficiency, HSE and animal welfare, as well as optimized resource utilization and increased value creation on board, according to the press release. “The company is developing completely new and patented technology that allows for a gentle recovery of the catch from the trawl without interrupting the actual trawling operation.”

Thus, the trawler will achieve a far more continuous and consistent raw material access than today without the traditional quality problems occurring. 

In addition to recovering the catch, the catch management system can also be used for fish finding and trawl surveillance. The company considers the technology leap as disruptive, with major implications for future vessel and process optimization, new operating modes and business models, as well as market development. 

gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw== - Nor-Fishing: Cod, haddock H&amp;G prices set firm, despite issues for Chinese processors

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