Saving Seafood

New Bedford Mayor Jon Mitchell to NEFMC: Sector IX Closure Is Hurting New Bedford’s Economy

April 18, 2018 — The following statement was delivered to the New England Fishery Management Council today on behalf of New Bedford, Massachusetts Mayor Jon Mitchell. Mayor Mitchell also serves as Chairman of the New Bedford Port Authority:   

Thank you Chairman Quinn and Members of the Council for this opportunity to communicate about a matter of ongoing concern to the Port of New Bedford, namely the impact that the closure of Sector 9 of the Northeast Fishery is having on groundfishing operations in the Port.

The NOAA decision has had–and continues to have–troubling economic consequence for the Port of New Bedford and our local economy. It has triggered significant business losses among local companies that provide support services to the commercial fishing fleet, and has meant the loss of livelihood for dozens of local fishing families.

It is important for all parties to keep in mind the numerous New Bedford businesses and families who have played no direct role in the operation of Sector 9, but who now find themselves in severe financial distress as a result of the Sector’s closure.

While the significant human cost of the closure cannot be adequately measured, Professor Dan Georgiana of the School of Marine Science and Technology at the University of Massachusetts (SMAST) has used a standard NOAA economic impact model to estimate the economic damage being done to the Port of New Bedford. His analysis found that the Port suffered roughly $12 million in economic losses in just the first twenty-five days after the closure went into effort on November 20th of last year.

This week marks the fifth full month of the Sector 9 closure, and the losses continue to mount. If one extrapolates from Professor Georgiana’s original analysis, it is not unreasonable to suggest that the Port of New Bedford may now have cumulatively suffered tens of millions of dollars in losses in the last five months.

This figure includes the impacts on harvesting, processing, wholesale and retail market activity, but does not include the cost to the public of unemployment compensation or the impact on businesses that supply vessels or process groundfish.

None of this is to suggest that the one person at the center of the controversy should not be punished severely. Carlos Rafael should be held fully accountable for his actions. I emphasize rather that the Fisheries Service should undertake its rulemaking, as it is statutorily required, with the interests of the Port and its businesses in mind. At a minimum, this means that it should complete the rulemaking “expeditiously”–as NOAA’s notice of withdrawal said it would–so that the effected fishermen and businesses can get back to work without further delay.

The Service also noted it had to calculate the amount of “overage” to certain groundfish stocks caused by Rafael’s fraud before it completed its rulemaking. Yet the Service has had, for some time now, all the reasonably available information to complete this loss calculation. Again, I urge the Service to complete these calculations and its rule-making with all deliberate speed.

The clock is ticking against New Bedford fishermen and shore-side businesses. A resolution of this matter therefore cannot come soon enough for the Port of New Bedford. Thank you for your consideration.

 

New England Council to Take up Issue of New Bedford Sectors IX and VII on Wednesday

April 17, 2018 — SEAFOOD NEWS — The New England Fisheries Management Council will take up the issue of the operations plans submitted by sector IX and sector VII, which represent the majority of groundfish vessels in New Bedford.

Many of these vessels, which were formerly members of Sector IX, have been prohibited from fishing until Sector IX came up with an acceptable mechanism to account for the illegal fishing and overages done by vessels belonging to Carlos Rafael that were in the sector.

The sector was strongly criticized by NMFS for failure to have an adequate plan to account for overharvests, to do proper record keeping, and to then take necessary steps to payback fish that was illegally harvested.

Instead of coming to an agreement, on the last day for filing sector membership, the vessels in Sector IX decamped en masse to Sector VII, which otherwise would have been shut down.

Sector VII vessels that have come from Sector IX still won’t be able to fish until a plan to pay back illegal harvests has been approved, but the vessels hope that by moving to an operating sector they may be able to lease their quotas.

Sector VII has written the council to say that for many years they have shared a sector manager with sector VIII, another sector in New Bedford. They said that with reduced catches, it was no longer viable for them to operate as a stand alone sector.

Sector manager Linda McCann wrote that they have one vessel groundfishing, and six vessels fishing for monkfish, and this is too small an amount of activity to sustain a separate sector.

She says the plan to merge with sector 8 was developed months ago, and communicated to NMFS.

She says “We didn’t realize we needed to justify to the fishing world why these internal decisions were made, or how we handle our internal business affairs.  However, we feel compelled to do so in sight of recent politics, attacks and mischaracterizations of facts. Let us be clear, the decisions made to merge sector 7 membership into sector 8 has nothing to do with the sector 9 situation of the Carlos Rafael situation. “

Another letter, from the Northeast Seafood Coalition urges the council to set clear goals.

“As many Council members are painfully aware, the 28 offenses to which Mr. Rafael pled guilty and is now incarcerated for have created enormous turmoil throughout the fishery and the region. Part of the turmoil concerns the broader fishery management implications of starting a new fishing year with such a significant portion of the fishery’s sub-ACL not being made available to the fishery.

NSC recommends that the Council provide the Agency with their primary objectives and request the Agency use their administrative authority to consult with the respective sector boards to achieve the stated objectives.

NSC recommends the following objectives:

  • ACE overages be identified and paid back to the system. The timing and result of the resolution shall be consistent with a result that would have been possible had the 2018 NEF Sector 9 roster been the same as 2017.
  • Conditional upon resolution of the NEF Sector IX overages, ensure the groundfish sector system has access to the ACE associated with permits that are enrolled in NEF Sector VII.
  • Work with the NEF Sector VII to ensure the conditions they’ve listed in their March 26, 2018 letter are met and upheld.”

This story was originally published by Seafood News, it is republished here with permission.

 

Fishing council to hear sectors’ post-Rafael plans

April 16, 2018 — The New England Fishery Management Council will be updated on the groundfish crisis involving several New Bedford-based fishing sectors when it convenes for three days of meetings next week in Mystic, Connecticut.

The groundfish presentation by staff from the Gloucester-based Greater Atlantic Regional Fisheries Office will be the centerpiece of the groundfish report on Wednesday and is designed to provide “an overview of (Northeast Fishing) Sector IX’s steps to address its shortcomings, as well as a summary of Sector IX’s operations plan,” according to the agenda for the meetings.

“The New Bedford sector has submitted its operations plan to GARFO and this will be an overview of what they’ve done to address the problems and what they need to do to have a new plan approved,” said council spokeswoman Janice Plante.

Plante said the presentation will not include comment from officials with the New Bedford fishing sectors.

NOAA Fisheries shut down Sector IX last November, withdrawing its operation plan for the remainder of the 2017 fishing season and into the 2018 season set to begin May 1.

The extraordinary move came in the wake of the conviction and sentencing of New Bedford fishing kingpin Carlos Rafael on charges of tax evasion, money laundering and bulk smuggling.

Read the full story at the Gloucester Times

 

NEFMC Meeting: April 17-19, 2018, Mystic, CT, Listen Live, View Documents

April 11, 2018 — The following was released by the New England Fishery Management Council:

The New England Fishery Management Council will hold a three-day meeting from Tuesday, April 17 through Thursday, April 19, 2018. The public is invited to listen-in via webinar or telephone. Here are the details.

MEETING LOCATION:  Hilton Hotel, 20 Coogan Boulevard, Mystic, CT 06355; Hilton Hotel Mystic.

START TIME:  The webinar will be activated at 8:00 a.m. each day. However, please note that the meeting is scheduled to begin at 9:00 a.m. on Tuesday and 8:30 a.m. on Wednesday and Thursday. The webinar will end at approximately 6:00 p.m. EST or shortly after the Council adjourns each day.

WEBINAR REGISTRATION:  Online access to the meeting is available at Listen Live. There is no charge to access the meeting through this webinar.

CALL-IN OPTION:  To listen by telephone, dial +1 (914) 614-3221. The access code is 167-206-035. Please be aware that if you dial in, your regular phone charges will apply.

AGENDA:  The agenda and all meeting materials are available on the Council’s website at April 17-19, 2018 NEFMC Mystic.

SPECIAL EVENT:  The Bureau of Ocean Energy Management’s (BOEM) Office of Renewable Energy Programs will be holding an open house on Tuesday and Wednesday from 8:30 a.m. to 5:30 p.m. in conjunction with the Council meeting. The event will be held in the Clipper Room near the Council’s main meeting room. BOEM has scheduled this open house to: (a) gather feedback on recently proposed commercial offshore renewable energy projects; (b) enhance communications between leaseholders and the fishing community; (c) answer questions about future leasing; and (d) solicit public comment on recently published public notices, including the Vineyard Wind project, which currently is under a 30-day public comment period with five public hearings scheduled from April 16 through April 19. Four will be held in Massachusetts (New Bedford, Martha’s Vineyard, Nantucket, and Hyannis) and one in Kingston, RI. Learn more at Vineyard Wind notice and hearing schedule and visit open house.

GROUNDFISH NOTE:  On Wednesday morning, the Council will receive an overview of Northeast Fishery Sector IX’s steps to address its shortcomings, as well as a summary of Sector IX’s proposed operations plan as submitted to the National Marine Fisheries Service’s (NMFS) Greater Atlantic Regional Fisheries Office. Because of recent information received from the industry, NMFS’s consultation with the Council on Sector IX likely will include: (a) discussion of the proposed Sector VII operations plan amendments that relate to Sector IX; (b) other sectors as they relate to Sector IX; and (c) effects on the sector system generally. The Council may provide recommendations to NMFS on any topics discussed.

 THREE MEETING OUTLOOK:  A copy of the New England Council’s Three Meeting Outlook is available HERE.

 

Sector IX vessels make a move to lease quota

March 30, 2018 — NEW BEDFORD, Mass. — Fifty-five vessels have left Sector IX, but they still can’t fish. However, they can lease their groundfish quota.

The 55, including four Carlos Rafael vessels subject to forfeiture, were submitted to be included in Sector VII for the 2018-19 fishing season, according to NOAA and Sector VII.

The move comes after six months of negotiations with NOAA in trying to get an operational plan approved, which would have lifted the groundfishing ban.

Had a move not been made, the vessels would have remained in Sector IX without the ability to lease quota. Three Sector IX vessels will remain in the sector.

The deadline for vessels to change sectors was Monday.

“What are we supposed to do,” Sector VII President Richie Canastra said. “The enrollment was Monday where you have to choose your sector for the 2018 and 2019 fishing season. No answer (from NOAA) was there yet. So those vessels and the permits owned by Carlos went to Sector VII.”

Canastra said the vessels affected by NOAA’s ban can only return to fishing with authorization from the agency or if they are sold to an independent party.

“It’s really straight forward. None of this was done to try to pull the wool over someone’s eyes or being sneaky,” Canastra said. “I just think it’s the right thing to do. I really believe the people in the industry will understand it’s the best move for everyone.”

The shift in sectors also included the additions of Richie Canastra as President, Tor Bendiksen as Treasurer and Cassie Canstra as Clerk to Sector VII.

In a letter from NOAA’s Regional Administrator Michael Pentony to the Chair of the New England Fishery Management Council John Quinn, he confirmed that the vessels would be allowed to transfer quota. He also confirmed that all vessels owned by Rafael would be inactive, unless they are sold to in independent party.

Read the full story at the New Bedford Standard-Times

Massachusetts: A shell game in New Bedford? 55 boats scramble out of Sector IX, catching NOAA by surprise

March 30, 2018 — SEAFOOD NEWS — Something fishy is going on in New Bedford (excuse the terrible pun).

On March 26, the final day for sectors to confirm their rosters and membership for the 2018 fishing season, NOAA got letters from sector VII saying that no vessels will remain in Sector VII who were there last year, and that 16 of these vessels are joining sector VIII.

Then they were told that 55 vessels from sector IX are joining sector VII, including the 4 vessels owned by Carlos Rafael that have been judged subject to forfeiture.

Meanwhile, a separate letter from sector IX said that only three vessels would remain in that sector, that it would operate solely as a lease sector and those vessels would not fish.

What is going on here?

First, all three sectors VII,VIII, and IX are New Bedford groundfish sectors approved under the Northeast Groundfish management plan.

Each year, these sectors have to submit operation plans to NOAA, including the roster of vessels and the rules under which the vessels in the sector will fish.

After the guilty plea by Carlos Rafael, and the admission last fall by sector IX that its vessels, primarily associated with Rafael, had engaged in overfishing, NOAA suspended the operating permit for that sector.  That meant no vessels in that sector could continue to fish.

Since the fall negotiations have been going on between NOAA and Sector IX over how Sector IX might return to operations.  The primary obstacle is that NOAA has required the Sector to account for its overfishing, and to calculate how much fish must be deducted from its current allotments in order to pay back fish illegally harvested.

Secondly, NOAA has insisted on Sector IX developing a monitoring and catch reporting plan that would prevent illegal fishing.

By March, neither side had reached an agreement, and the issue of Sector IX was going to be a prominent part of the New England Fishery Management Council Meeting next week.

NOAA was blindsided by the switcheroo.

Much of what is going on in New Bedford is with the same actors.  Three Board Members from Sector IX would join the Board of Sector VII.  Meanwhile, the manager of Sector IX, Stephanie Rafael-DeMello, has said she would be moving to fleet operations management for Rafael’s vessels, instead of continuing full time as the manager of Sector IX.

One interpretation of this switch is that Sector IX is being effectively disbanded.

However, not all the promises made by Sector IX to NOAA are being carried over as the vessels move to sector VII.

One point mentioned in NOAA’s letter to the council is that Sector VII has requested that vessels owned by Carlos Rafael remain inactive in the fishery, although with rights to lease their quotas to other sectors or intra-sector, unless they are sold to another party.

But the 55 vessels transferring to Sector VII, including all those currently listed as inactive, could become operational within Sector VII with no changes to existing ownership.

Under NOAA rules, if a sector disbands after having overfished, the overfishing penalty is allocated among the vessels that had previously been in the sector, and deducted from their new sector allocation.

As Sector IX was unable to provide information about the overages of specific vessels, the time and cost of allocating the overages to the remaining vessels transferring out of the sector may be substantial.

The three inactive vessels remaining in Sector IX appear to be willing to shoulder the penalty, once it is agreed upon, and to pay it by having the overages deducted from the amount of their quotas that are leased. The move appears to be an attempt to get the other Sector IX vessels out from under the obligation to payback the sector overages.

All of this will be discussed at the council meeting, which promises to be interesting.

The driving factor here is that the New Bedford Auction, owned by the Canastra Brothers, needs to get some volume of groundfish back.  This has been greatly reduced by the suspension of sector IX.  Rafael vessels represented the largest source of groundfish for the private New Bedford auction.

The Canastras first tried to buy Rafael’s boats.  This did not go anywhere, as NOAA needs to give its approval.  Then they tried to set up a way to satisfy NOAA on Sector IX overages without providing a detailed accounting.  This was not accepted either.

Now they have participated in a wholesale abandonment of Sector IX and moved vessels to Sector VII, with the aim of first, hoping the vessels will be allowed to fish, or that in this situation inactive vessels can become active though still owned by their original Rafael connected owners.

Secondly, they may be hoping to clear the way for a sale of these vessels who are now potentially operating in a less tainted sector.

There has been a continuing political effort in New Bedford to try and keep the groundfish volumes that had been part of Rafael’s fishing operations within the port.

All of this maneuvering avoids the basic question before NOAA and the Council, which is whether the permits for the vessels that are now suspended will simply be allocated to New Bedford, or will they be subject to distribution to the rest of the New England groundfish fishery that was harmed by the rampant overfishing taking place in New Bedford.

This story originally appeared on Seafoodnews.com, a subscription site. It is reprinted with permission.

 

Don Cuddy: Reidar’s — like others — part of Sector IX collateral damage

March 19, 2018 — It was just before Thanksgiving that NOAA shut down Sector IX after Carlos Rafael had been found guilty and sent to jail and, three months later, none of the boats or crews from the sector are any closer to going back to work. “There has been a lot of talking but not much action,” Tor Bendiksen told me. A number of suggestions have been out forward about how to resolve the issue but there is a notable absence of leadership, and throwing local business owners under the bus because one of their customers gamed the system is rough justice, to say the least.

Tor is now on the board of Sector IX and earns his living in the family business, Reidar’s Trawl-Scallop Gear and Marine Supply. It was started by his father, Reidar Bendiksen in 1986 on the Fairhaven side and its reputation for excellence extends the length of the Eastern seaboard. This family, like the fishing families of Sector IX, who like the rest of us have mortgages, monthly bills and kids in college, deserves more from the National Marine Fisheries Service.

“A business like ours relies on revenue coming in all the time. Usually you get paid sixty days after the job. So when you lose the December, January and February billing because the draggers aren’t going it’s a problem because you are relying on that constant turnover. We operate on small margins so it takes a lot of volume to actually make a profit. Now we’re scraping just to keep up with the bills.” They have to order the net-making gear and supplies they need months in advance and their suppliers are not going to wait months for payment so they are drawing on their reserves to keep going, he said.

The scallop season begins April 1 this year and some work is now coming into the shop from the scallop fleet. “But they won’t pay us until May,” he said. The winter fishing season has now passed the sector boats by and all of the shoreside businesses that service the groundfish fleet have taken a hit. “Essentially we all have a share of the fish in Sector IX. We get paid when the boats come in, sort of like in the whaling days,” Tor said. The continued closure of Sector IX is causing far more damage on the waterfront than is being acknowledged or reported, he believes.

With a new fishing season set to open in May, and with it a new allocation of quota, the sensible option now is to allow these boats to go fishing under the direction of the new board of directors in Sector IX. NMFS taking so much time to actually do something to resolve this serves no one.

Read the full story at the New Bedford Standard-Times

 

Legit Fish rolls out the first cloud-based traceability technology for Massachusetts scallop and groundfish

March 8, 2018 — The following was released by Legit Fish:

Legit Fish (www.legitfishinc.com), a provider of advanced seafood logistics and traceability technology, today announced a deal with BASE New England who operates the largest seafood auction in New England and is based in New Bedford and Gloucester MA.

Legit Fish Inc. developed and is implementing this first of its kind, end to end logistics and traceability solution with Atlantic Coast Seafood Inc. (Boston MA). This innovative cloud-based software application provides the domestic seafood industry with operational efficiencies as well as new cutting-edge marketing tools, linking off-loading, government reporting, inventory management, sales, accounting and an industry leading traceability system. The traceability application utilizes a patient pending system which offers the retail trade an unmatched level of traceability based on verification against the official government harvest records.

On March 8th 2018, Legit Fish Inc. signed a contract to further develop this system with BASE New England. In addition to the software application developed in Boston, Legit Fish Inc. will be expanding this system by creating a custom Auction application which will offer a high level of versatility and functionality. The application runs on the Microsoft Azure cloud computing platform. This technology solution provides auction participants with the ability to use their mobile devices to purchase seafood products on the Auction platform and allow vessels to transmit hail information direct into the software via a multi language voice response app. These advancements for BASE New England will allow them to clearly monitor “on the water” hail information as well as product sales compared to dealer reported federal records. These third-party compliance tools have positive implications for BASE New England and the port of New Bedford in their effort to reopen the New England Groundfish Fishery Sector IX. Considering NOAA’s requirement for increased accountability measures to the operations plan of Sector IX, this revolutionary app provides a substantial technological improvement for the fishery and the sector.

Legit Fish Inc. will be attending the 2018 Boston Seafood Show and will be available for both product demos and detailed explanations of this new innovative technology.

About Legit Fish Inc.
Legit Fish Inc. provides Seafood off-loaders a complete cost-efficient ERP solution. Our innovative cloud-based application can be integrated with various other systems and provides an industry leading traceability system that is verified to the official government harvest records. This new system offers supply chain participants and retailers complete confidence in the origin of their products as well as a new innovative solution to market products. Further information can be found at www.legitfishinc.com.

 

Massachusetts: NOAA’s ban suffocating shoreside industry in New Bedford

March 1, 2018 — NEW BEDFORD, Mass. — The hits keep coming from NOAA’s groundfishing ban with financial losses spreading to businesses that support New Bedford’s fishing fleet.

“No one ever really paid attention to our shoreside businesses,” manager of Reidar’s Trawl Gear and Marine Supply Tor Bendiksen said. “We’re the last of the group. We all remember when there was companies like ours up and down this entire coast. The only reason that we’ve all survived in New Bedford is because we had not only groundfishing but we have the scallop industry to support us. But this one little incident with how important groundfish is has put us all to our knees.”

It’s been three months since NOAA installed a groundfishing ban on Sector IX, which halted operations of about 80 fishermen.

Though, the collateral damage of the ban extends beyond fishermen.

Virginia Martins, the president of Sector IX, also is the president of Bay Fuel, which has sold more than 1 million fewer gallons of gas this year compared to past sales.

John Reardon, also a board member and general manager at Hercules SLR, said sales of safety marine equipment is down 50 percent since the ban.

Bendiksen, a Sector IX board member, said sales at Reidar’s are down 30 percent. Reidar’s, which employs 14 people, manufactures fishing nets. In the past, a fisherman’s net would be in his shop at least once a week. Since November, they’ve done three total.

Read the full story at the New Bedford Standard-Times

 

Massachusetts: Post-Rafael, New Bedford fishing industry looks to move forward

February 22, 2018 — NEW BEDFORD, Mass. — For perhaps the first time, at least publicly, fishermen on Carlos Rafael vessels sat in the same room Wednesday as John Bullard, the former regional administrator for NOAA, who implemented a groundfishing ban for those vessels.

Bullard, wearing a blue NOAA jacket, sat in front of a four-person panel brought together by Rhode Island Public Radio. The fishermen, wearing baseball caps and New Bedford Ship Supply sweatshirts, sat to the left of the panel, which discussed fishing in New Bedford after Carlos Rafael at Star Store.

“It’s an issue that’s near and dear to my heart, not just because I was the regional administrator of NOAA Fisheries to close the sector, but I care about this,” Bullard said. “This is my hometown.”

Bullard, now retired from NOAA, declined to comment specifically on the groundfishing ban, which went into effect in November.

However, Cassie Canastra, marketing director of BASE seafood, and Dan Georgianna, economist and professor emeritus at SMAST, are each on the board of the fishing division that’s affected by the ban. They said Sector IX plans to meet with Greater Atlantic Regional Fisheries Office to propose a new operational plan. If approved, it would end the ban, however, Canastra said no date for a meeting has been determined.

Neither offered more insight into negotiations to end the ban.

Canastra and Georgianna were joined by Laura Ramsden, co-owner of Foley Fish, and John Quinn, chairman of the New England Fishery Management Council, offered a smorgasbord of insight regarding fishing in New Bedford.

Read the full story at the New Bedford Standard-Times