Gulf Coast shrimpers face a “double whammy” from soaring diesel prices and a tariff refund dispute following a Supreme Court ruling, leaving many boats docked ahead of the shrimping season.
Fuel Crisis
Diesel averages $5.46 per gallon, roughly $2 higher than a year ago, driven by geopolitical tensions affecting global oil supply. The Strait of Hormuz remains effectively closed due to Middle East conflict, blocking about 20% of the world’s oil supply.
Joseph Rodriguez of Bayou La Batre, Alabama, built the “Little Andrew,” a vessel holding 27,000 gallons of diesel. His recent 37-day trip burned through 12,000 gallons.
The Southern Shrimp Alliance says fuel costs routinely exceed 50% of total operating expenses. Elevated prices could limit access to sustainable shrimp stocks off the U.S. coast.
Tariff Refund Dispute
In February, the Supreme Court ruled Trump’s tariffs on U.S. importers were unlawful. The U.S. collected $902.7 million in tariff revenue on imported shrimp. The government is refunding it to foreign companies.
Nearly $450 million of refund money heads to India alone, according to the Southern Shrimp Alliance. Industry groups want those funds redirected to domestic shrimpers.
“They ought to put it in some kind of fund to help domestic shrimpers,” Rodriguez said. “We’re in competition with the government of China, for God’s sake, a communist country.”
Rodriguez urged consumers to buy American shrimp, claiming imported products carry higher contamination risks from pathogens or veterinary drugs.