PORTLAND – The Portland Fish Exchange is having a tough time of it along with the struggling New England fishing industry.

The city-owned fish auction says it is handling record-low volumes of fish this year. Only 7 million pounds have been landed at the exchange so far this year, just half the amount landed in 2004 and 20 million pounds less than the peak year of 1992.

Fish Exchange President Thomas Valleau wrote in a letter to the City Council that the exchange is looking at a $200,000 loss after losing $150,000 last year.

The auction, along with the entire groundfish industry, has been struggling under the weight of strict regulations that limit how often fishermen can go to sea.

“More is at stake than just the Portland Fish Exchange,” Valleau wrote. “The future of the groundfish industry in Maine is also in question.”

The Portland Fish Exchange, which opened 20 years ago, serves as a landing point where fishermen can sell their catches of haddock, cod, flounder and other fish that live in New England waters.

But nowadays, fishermen are struggling because of federal fishing limits aimed at restoring fish populations. Many fish stocks are rebounding, Valleau said, and the industry should be in good shape when they fully recover.

But if Portland loses its fishing boats and infrastructure during the lean period, the fleet will never return, he said.

“We see things rebounding in two, three, four years,” he said. “We are worried that our fleet will be gone.”

Maine is at a competitive disadvantage to Massachusetts, which doesn’t require fishermen to pay fuel taxes on diesel fuel, Valleau said.

Massachusetts’ ports also have cheaper pier space for boats, and the state – unlike Maine – allows fishing boat crewmen to collect unemployment insurance, said Bob Tetrault, who owns two fishing boats in Portland.

Fishermen are also drawn to Massachusetts because it allows fishermen to bring lobsters to shore that are caught in their nets, a practice that is illegal in Maine.

When fishermen are struggling, the lobsters can bring in much-needed revenue.

“That’s $10,000 to $12,000 per trip,” Tetrault said. “You can’t leave that laying around.”