US crude oil hits $75.40, a new record high

Here is a news item pointing to the adverse affects higher energy prices will have on industries that rely on oil to run. Industries operating near their limits, like the fishers mentioned below, may be hit first.

-- Philip B. / Washington, DC

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http://www.thanhniennews.com/society/?catid=3D3&newsid=3D17210

High fuel prices make fishing unviable option in Vietnam

High fuel prices have eroded Vietnamese fishermen's profits from deep-sea fishing trips which -- once profitable -- are now causing losses.

Since last year gas prices have gone up by 60 percent.

For a three-month trip for a pair of fishing boats, fuel alone cost VND320 million to VND480 million ($20,000 to $30,000), a ship owner who has just lost VND100 million ($6,250) on one such trip, said.

Tran Van Tan, another owner, said a trip that fetched a profit of over VND100 million ($6,250) last year caused a loss now.

As a result, many owners are wary of going out to sea. In Ba Ria-Vung Tau province's Phuoc Tinh port alone, some 30 large vessels lie idle. Nguyen Van Beo, after a recent three-month fishing trip, lost over VND70 million ($4,375).

"I don=E2=80=99t know when I can afford to go fishing [at sea] again. Selling ships is not easy," he said.

Tra Trung, who used to own four boats, recently had to sell one of them for just VND120 million ($7,500), or one tenth of its cost.

"If I don't sell it, how can I raise money for my [fishing] trips?" he asked.

"If ships lie idle for a long time, their owners will surely go bankrupt," another fisherman said.

Source: Tuoi Tre -- Translated by Hoang Bao

Posted by Philip Bogdonoff on July 07, 2006 at 02:36 AM SGT #