by John Sackton
(SEAFOOD.COM NEWS) Feb 6, 2013 — There has been a lot of confusion in Gloucester, some of it deliberately created, about the ownership structure of the auction on Fisherman's wharf.
The wharf was bought by Vito Giacalone in 2003, and has unloading, display, and packing facilities.
When New Bedford's Whaling city auction, also known as the buyers and sellers exchange (BASE) wanted to establish a landing and sales facility in Gloucester, they provided the auction software, bonding of buyers, and billing and sales support for the operation in Gloucester.
The Gloucester BASE auction is owned and operated by Vitos three sons, Chris, 27, Vito Jr., 25 and Nick 24, who entered the fish business by managing the Boston Seafood Display Auctions Gloucester unloading station. They have financed their business directly with their own bank loans.
The unloading station was upgraded to a full auction site on June 2, 2011, when it began auction sales using the BASE software.
BASE allows New England seafood buyers to bid on fish at either the Gloucester, Boston or New Bedford location from the same screen, and allows buyers access to a greater quantity of fish.
The financial structure, according to Giacalone, is that his family owns the wharf, his son's business pays rent and is the only tenant for the unloading and display facility. BASE and the Whaling City Auction, owned by the Canastra brothers, provide the auction software and guarantee buyers, and arrange payments for all fish purchased.
The Giacalone sons receive payments for operating the wharf and display auction, including unloading and handling fish, and they receive auction and handling payments from BASE for fish purchased in Gloucester. The boats selling the fish get their checks directly from BASE, with auction and handling fees deducted.
Another auction in Gloucester, the Cape Ann Seafood Exchange, is the successor to the auction run by Larry Ciulla which was called the Gloucester Display Auction. This auction was controversial due first to efforts by NOAA to determine whether it was reporting landings properly, and secondly, it became the target of fishermen's lawsuits claiming the auction falsified payment slips to some vessels. Ciulla sold the auction to one of his tenants, Kristian Kristensen, the president and owner of Zeus Packing Co. The sale was made at the same time a settlement was reached with fishermen who had charged the auction with skimming additional money from their settlements. The Ciulla's continue to own the land and buildings used by the auction.
Both auctions compete for the loyalty of vessels landing in Gloucester. Diminished volume makes it harder for everyone to operate, since expenses are usually covered by a fixed cost per lb. Last Thursday, the Cape Ann Display auction reported a volume of 44,100 lbs, the BASE auctions in Gloucester and New Bedford reported a combined volume of 96,300 lbs of fish and 5,400 lbs of scallops, and the Portland, Maine auction reported a volume of 30,200 pounds.
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