Wednesday, September 25, 2013

Bristol Bay Drift Gillnet, Southeast Seine Permit Prices Way Up

Just a year ago prices for Bristol Bay drift gillnet permits were way down, with sales in the $113,000 to $115,000 range, and in the spring of 2013, two of those permits sold for $92,000 and $93,000 respectively at Dock Street Brokers in Seattle.

But within the past week, another of those Bristol Bay drift gillnet permits sold for $130,000 and as of Sept. 23, the cheapest one out there was asking $135,000, said Dock Street broker Paul Piercey.  “Compared to last year, it’s way up,” he said.

Back in October of 2012, the brokerage sold one of those permits for $87,000, and in December, another for $85,000, but in January they started inching up to $90,000 and by April up to $94,000, Piercey said. “Then the reality of the dock price being $1.50 a pound for reds (sockeye salmon) pushed the price to $126,000 and it leapfrogged from $126,000 to $135,000,” he said.

Set netter permit values took a blow when they lost the ability to own and fish two permits in Bristol Bay. Piercey said he had expected more of the set netter permits would be on the market, but those that are available are selling in the $37,000 to $38,000 range.

Permits for Southeast Alaska seiners are also way up in the wake of the last buyback in 2012, some of them listing for more than $300,000, Piercey said. There are not many for sale, and when they become available, they are getting snapped up quickly.

In the spring of 2011, they were selling for $125,000, and then, just prior to the 2012 season, came the first buyback and prices went to the mid $200,000 level. By the fall of 2012 they were selling at $240,000, and after the first of the year, one sold right away for $300,000. The prices for those Southeast seine permits dropped back down to about  $250,000 and then climbed back up to $300,000, and right now the cheapest one out there is for $306,000, he said.

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