The Chinese squid fleet has chosen to evade Peru's new port measures because this would reveal dark behaviors associated with illegal fishing in the Pacific and Atlantic. Worse yet, this data could confirm cases of forced labor as part of their fishing operations. Transparency seems to be a concept that the distant-water squid fleet is still struggling to grasp.
Eloy Aroni, maritime consultant and distant water fisheries expert.
The giant squid (Dosidicus gigas) is a fast-growing species that reproduces only once during its short lifespan (1-2 years) and supports the most important cephalopod fishery in the Southeast Pacific. This resource holds great socio-economic importance for the coastal states of Peru, Chile, and Ecuador, which primarily catch this resource within their jurisdictional waters.
90% of the annual squid catches come from Peru and China.
Meanwhile, the distant water squid fleet (China, Chinese Taipei, and the Republic of Korea) operates in international waters within the South Pacific Regional Fisheries Management Organization (SPRFMO) convention area.
The competition between wood and steel
Between 2010 and 2022, Peru's annual squid catch averaged ~500,000 tons. In contrast, China experienced a 250% increase in its catches, rising from 142,000 to 514,500 tons, surpassing Peru for the first time in 2022. How do these two fleets differ?
In Peru, a 10-meter wooden boat can catch squid for 10 to 20 days, with fishing trips exceeding 200 nautical miles. However, the boat must return to port to unload its catches. Meanwhile, steel vessels flagged to China can remain fishing for extended periods of up to three years due to transshipment operations and high-seas subsidies. A type of fishing that has been the focus of countless complaints of illegal fishing and signs of forced labor.
"In 2023, we have witnessed a government with double standards. On the one side, foreign squid vessels are allowed entry without having VMS satellite equipment installed, going against Peruvian regulations. Yet, when it comes to our artisanal fleet, strict enforcement suddenly appears. So, it leaves us questioning: Who does the government really work for?" said Elsa Vega, President of the National Artisanal Fishing Society (SONAPESCAL).
The connection between Peru and China is not limited to squid fishing but also involves the use of Peruvian ports. Therefore, it is crucial to understand the changes in the distant water squid fleet dynamics since the Peruvian government introduced new port regulations in August 2020. Artisonal analyzed public data on the Automatic Identification System (AIS) from Global Fishing Watch and information from port inspection records, which the Ministry of Production (PRODUCE) must report to the SPRFMO between 2018 and 2023.
The results support the idea that the flag States of the fleet are unwilling to comply with the new port regulations. On the contrary, they have sought mechanisms to weaken or circumvent them, such as by turning off AIS systems or through a process known as forced arrival.
The first thing to highlight is that the fleet currently operating in the South Pacific comprises 100% of Chinese flag vessels. The fleets of Chinese Taipei and the Republic of Korea stopped operating after Peru strengthened its port policy in August 2020, requiring foreign squid vessels to install the Peruvian vessel monitoring system (VMS) to enter Peruvian shipyards for maintenance and repairs.
On the other hand, in 2020, the SPRFMO attempted to introduce the first squid conservation and management measure to limit fishing efforts, but it failed. It was not until 2023, when the amendment was finally approved, that it was possible to freeze the number of vessels of the distant water squid fleet to a total of 766 vessels (671 Chinese, 50 South Korean, and 45 from Chinese Taipei).
Hiding traces
In 2021, the squid fleet experimented with the most significant spatial change by voluntarily distancing from the Exclusive Economic Zones (EEZ) — staying 50 miles outside the Galapagos EEZ and 30 miles outside the Peruvian EEZ. The decision was prompted by the constant AIS turn-offs at the EEZ borders, a behavior characteristic of vessels attempting to conceal their tracks to enter Peru and Ecuador illegally.
In 2023, several cases were uncovered involving Chinese vessels vanishing from AIS systems on the border of Peru's EEZ. These included the HONG RUN 55, which had a 36-hour AIS gap before arriving at the Peruvian port, and the NING TAI 65, which turned off its AIS signal for 93 hours after leaving Callao port. Both vessels entered the port under a special request, "forced arrival."
However, after reviewing the port inspection form of the NING TAI 65, a contradiction was detected. The entry's purpose reads: "forced arrival—validation of documents." In minor letters, in the inspector's observations, it is noted that "the arrival occurred to hospitalize a crew member with a sharp puncture wound to the head."
The traces left by the vessels on the high seas and the inconsistencies in inspection documents allow us to decipher, little by little, the true reasons behind the Chinese government's refusal to comply with Peru's port policies.
The COVID-19 pandemic and new port regulations have not slowed fishing activity by the distant water squid fleet. After 2020, annual catches increased by 20%, and encounter events (representing transshipments) have increased by 30%. However, the number of active fishing vessels has decreased from 620 to 490 before and after 2020. With fewer vessels each year, the fleet is generating higher annual catches.
The vessel tracks reveal the existence of extended fishing periods — on average, between 1.5 to 2 years. The analysis identified around 20 vessels that operated on the high seas for more than 2.5 years. This means that there were crew members who spent nearly 1,000 days without setting foot on land.
In addition, conditions that could reveal signs of forced labor were detected. Nine out of the 20 vessels belonged to the NING TAI family, owned by Zhoushan Ningtai Ocean Fisheries Co. This company was involved in a documented case of withholding wages and intimidation towards an Indonesian crew member on one of its vessels.
The key is in port control
According to AIS data and port inspection forms, the records of port entry events confirm that the fleet is returning to the entry values before Peru's port regulations came into force (Aug 2020). Thus, in 2023, the arrival of 146 Chinese vessels to the port of Callao was recorded, two toward Chimbote and one for Paita.
How did they enter Peruvian ports without installing the Peruvian VMS system? The answer lies in the declared purpose of arrival that each vessel provides to PRODUCE. A considerable number of vessels have entered by "forced arrival," "certificate renewal," and "crew change."
According to PRODUCE's convenient interpretation, these last two reasons for arrival fall outside the scope of the norm that requires VMS for foreign-flagged squid vessels. Therefore, vessels arriving for these purposes would not be required to have VMS satellite equipment.
The most worrying finding is that 12 vessels supposedly entered for crew changes or certificates renewals. However, it is known that after completing the port inspection, they did not return to the open sea but instead went to the Construcciones A. Maggiolo SA and Servicios Industriales de la Marina-Callao (SIMA-Callao) shipyards. For example, the Chinese vessel SHUN ZE 777 was photographed while receiving hull maintenance. This represents a serious violation of Peruvian regulations, which clearly state that VMS satellite equipment must be installed to use port services and shipyards.
"As I have mentioned in different media, there are no coincidences in politics. Certainly, the Ministry of Production has been by de facto repealing the rule that forces the distant water squid fleet to make its position transparent and thus have objective tools for adequate monitoring in our jurisdictional waters," said Alfonso Miranda, President of The South Pacific Giant Squid Committee (CALAMASUR)
The truth is that the 12 foreign vessels have committed two serious infractions: not installing Peruvian satellite equipment and providing erroneous and incomplete information to the port authorities. Sanctions for these vessels should also fall on maritime agents since they are the ones who process port entries and are legal representatives of these fleets in Peru.
On the other hand, in 2023, five Chinese vessels entered the Chilean ASMAR shipyard in Talcahuano while the fleet moved from the Atlantic Ocean to the Pacific. Unlike Peru, Chilean port regulations only require a VMS satellite positioner compatible with the Chilean system to access the port. It could be that the fleet is desperately looking for a new port in the Pacific in case it cannot reverse the Peruvian regulation.
"As Chilean artisanal fishermen, we are deeply aware of recent events on the high seas, including the numerous allegations involving the Chinese squid fleet. For years, our government has proudly rejected the presence of these fleets in our waters. But, we observe with concern a similar trend to what happened in Peru in recent years, and we fear that we could soon be the ones facing this problem,” said Pascual Aguilera, Leader of the National Coordinator of Jibieros of Chile.
What happens to injured or sick crew members once they arrive at port?
We do not know. The PRODUCE inspection documentation typically states: "Injured or sick crew members require medical attention." Without a voice and a name, it is impossible to know the fate of a crew member.
An example is the case of a deceased crew member disembarked from the LU RONG YUAN YU 668 in the port of Callao. The documentation offers no explanation for the causes of death. One can imagine how harsh the working conditions are aboard these vessels and, even worse, where there is a record of illegal fishing.
The most concerning incident involves the ZHE PU YUAN 98, which has disembarked 12 injured and sick crew members at the port of Callao over the last two years. With each port entry, the vessel has left one or two crew members ashore in critical condition.
The Outlaw Ocean Project cameras have confirmed that since 2021, this vessel has been operating as a floating hospital. It's been reported sick crew members from other squid vessels were taken to the ZHE PU YUAN 98 for treatment, while those in more severe condition were transferred to Peru.
Unfortunately, the SPRFMO port inspection format does not require the recording of names, let alone testimonies of the victims. This is something that the flag States of the distant water squid fleet are aware of. As a result, it is difficult to know which vessel the crew members left at the port belonged to or the identities of the crew members listed without names on the inspection records.
Sustainable squid management should not only focus on preventing illegal fishing. Now, it is crucial that we ensure the squid we consume is free from any traces of forced labor.
From Artisonal, we strongly encourage the coastal states of Peru, Ecuador, and Chile to remain firm in their port policies. Additionally, we call on the flag States of the fleet to contribute to transparency in the fishery of one of the most important species in the southeastern Pacific Ocean, the giant squid.
Eloy Aroni is a representative of the organization ARTISONAL.
This report will be published soon and will be available on our website artis0nal.com