Price of diesel affecting shrimping industry

For years, the shrimping industry has battled wave after wave of challenges, from surges of imported shrimp to plummeting prices and wild weather. Now, a new threat looms: skyrocketing diesel fuel costs.
Diesel fuel has hit a record price of close to $6 a gallon in South Louisiana, and the national average is $6.52, according to AAA. That is up an average of $3.69 a gallon at this time last year.
With fuel prices so high, many shrimpers remain at the dock.
Albert and Cheryl Granger are a husband-and-wife team who own a 55-foot-long shrimp boat that their son, Albert Jr., operates. They sell their shrimp from their home in the north Vermilion area. Their business is called “Granger Seafood.”
It is a method they have been doing since the early 1980s, long before it was popular.
But in recent months, they have watched their hard-earned profits slip away, eaten up by the relentless climb of fuel prices.
“If the price of fuel keeps climbing, we do not know what is going to happen,” said Cheryl. “We were finally getting a grip on imported shrimp. It was slowing down. Now, with the high fuel cost, many shrimpers have tied their boats.”
The Granger boat is one of the few from Vermilion Parish that ventures into the Gulf of Mexico to troll for shrimp. Albert Jr. operates the Granger family boat named Ms. Brittany. Albert Jr. also owns a shrimp boat which is for sale today.
Cheryl explained that keeping a shrimp boat running is costly, as breakdowns and repairs are a constant part of life on the water.
A shrimp boat burns about 100 gallons of diesel every 12 hours, racking up nearly $600 in fuel alone. That is $60 an hour, before even paying a crew to help Albert Jr. keep the boat going.
Each fishing trip into the Gulf lasts at least four days, leaving the Granger family with a fuel bill that can reach $2,000 before they even count their catch.
A year ago, it was half that price, said Albert. Sr. The Granger family is worried about the future of shrimping. Many younger shrimpers are getting out and selling their boat. Others are learning other ways to make money, along with tying up their boat.
To stay afloat, the Granger family has filled their business freezers with more than just shrimp. Now, they offer frog legs, canned raw oysters, tuna, alligator meat, salmon, redfish, and red snapper to their customers.
They have also mastered the art of frugality.
If it is not essential, they simply do not buy it, Cheryl said.
The bad news is that the price of diesel does not look like it will drop anytime soon. Much of the high price is because of the U.S. war in Iran, which has affected the supply of crude oil from which diesel is produced.
Diesel supply has also been affected by the loss of refineries in Russia amid its war with Ukraine. Ukrainian strikes have hit Russian oil facilities, including refineries that produce diesel, straining the industry.
Experts predict diesel prices will take months to start dropping.
Consumers will also see the effects of high diesel prices at the grocery store.
The seafood, farming and truck transportation industries are paying more for fuel, which will be passed down to consumers.
The Grangers have raised the price of their shrimp per pound by just under 10% because of the high fuel bill. It is their first price increase in nine years.
The big question everyone’s asking is, “How much longer can the Grangers and other shrimpers actually stay profitable if fuel prices keep climbing?”
“The breaking point is almost there,” she said. “When the price (of fuel) hits a certain price, you will be like, ‘OK, that is enough.’”
The Grangers said if the price of diesel continues to climb, that breaking point is shrinking.
“Well, it is enough right now,” Cheryl said. “We have to be conservative.”
They say their lifeline this year has been the unwavering support of loyal customers who have stood by them through thick and thin.
“We could not have remained open without them. I want to thank everyone for that,” she said.