$40 Million Is Lost In Unpaid Crew Wages, Rightship’s 2023 Seafarer Abandonment Report Finds
Lost at Sea: $40 Million in Unpaid Wages Discovered in 2023 Seafarer Abandonment Report by Rightship
Reported rates of seafarer abandonment show no signs of slowing, with current figures listing 9,925 men and women cast adrift over the last 20-years. This is according to the latest research from leading ESG-focused digital maritime platform, RightShip, as part of an urgent review to highlight this concerning trend and spur the industry to action.
The research demonstrates that cases of reported abandonment have been on the rise for five consecutive years, with other notable peaks forced by the 2009 financial crash and the 2017 MLC convention. Most recently the pandemic and conflict induced abandonments have resulted in a steady uptick, with cases recorded in countries across all continents, led by the UAE, Spain and Turkey. At the close of 2022, 103 vessels were abandoned, impacting upwards of 1,682 seafarers.
Abandonment case disputes, as revealed by RightShip in February 2023, are still causing unacceptable levels of financial hardship, with the latest data showing that over the last 20-years unpaid monies to abandoned seafarers adds up to $40 million USD.
According to the International Maritime Organisation’s (IMO’s) definition, abandonment occurs when a shipowner is unable to cover the cost of a seafarer’s repatriation and fails to pay wages for at least two months, has left seafarers without maintenance and support, or otherwise severs ties with the crew. In cases of sudden abandonment, these people are left to suffer without food, water, supplies, medicine and the ability to reach shore to contact anyone. Living under these conditions can have devastating consequences, including loss of life through neglect or suicide.
Steen Lund, CEO, RightShip: “When abandoned on vessels, seafarers are left alone to fend for themselves while corporations avoid their responsibilities. When those who destroy the lives of seafarers also employ them, it is, in all senses, deeply troubling. However, as regulators and RightShip begin to clamp down on due diligence at all points in the supply chain, there will be catastrophic financial implications for those who partner with irreputable ship managers.”
The rise in ESG compliance regulations mean that charterers, bankers and financiers are increasingly being asked to evidence due diligence when it comes to selecting their partners, with open abandonment cases reflecting poorly on ship owners and managers.
Steen continues: “We already identify vessels guilty of abandonment linked to a company in the RightShip Platform. We cannot and will not recommend them to our customers for voyages and we mark them unacceptable during the vetting process. Operators who have little regard for the welfare and human rights of their crew must not be allowed to continue to operate. But we know we can do more, and so can the more than 1,000 ship management companies that have not declared their hand by refraining from completing the Crew Welfare Self-Assessment.”
The assessment encourages organisations to engage with and improve crew welfare and – in conjunction with crew abandonment data in the RightShip Platform – allows charterers to select vessel owners and managers which have made public commitments to high crew welfare standards. As of early 2023, RightShip received Crew Welfare Self Assessments from 226 DOC (Document of Compliance) holders covering over 6,150 vessels.
Steen concludes: “When seafarer abandonment still happens, it is largely down to the ruthlessness of capitalism. Wanting to eliminate the issue means putting in place your best management practices to stop it.”
The report can be viewed in full here and more information about the Crew Welfare Self-Assessment can be accessed here.