The Overlooked Stakeholders in Shipping: Why Seafarers Deserve their Slice of the Pie.

In the vast and interconnected world of shipping, the industry runs on the efforts of many players. Ship owners, banks, shipyards, insurance companies, and charterers each hold distinct roles that contribute to the supply chain. Yet, one group often overlooked is seafarers. These dedicated professionals navigate the high seas, facing significant challenges, all while enjoying minimal recognition and benefits from the industry's profits. Today, we will shed light on the indispensable role seafarers play in shipping and make a case for why they deserve their fair share.

The Backbone of the Shipping Industry

Seafarers are the unsung heroes of the shipping sector, performing essential tasks that sustain the global economy. With over 1.6 million seafarers working worldwide, these individuals are responsible for operating ships that move over 90% of the world’s goods.

Despite their importance, seafarers face prolonged absences from home, grueling working conditions, and a lack of proper support. This neglect often arises from the misguided belief that such conditions are inherent to their roles, which diminishes their ongoing sacrifices. For instance, a recent study highlighted that 47% of seafarers reported experiencing mental health issues due to prolonged isolation and work-related stress.

A cargo ship navigating through ocean waves

Despite technological advancements and improved safety protocols in the shipping world, seafarers' recognition and benefits have not kept pace. While the industry continues to generate billions of dollars in profits, seafarers often find themselves underpaid, working in harsh conditions, and lacking job security.

Profit Distribution in Shipping

To understand how profit is shared within the shipping industry, we need to look at the various stakeholders. Each player takes a piece of the pie, yet seafarers typically receive the smallest share.

*Ship Owners: They make significant investments in ships, earning huge profits from shipping fees that can range from thousands to millions of dollars based on cargo value and distance.

*Banks: Financial institutions provide loans that feed into the industry, earning interest on those loans while benefiting from lucrative shipping contracts.

*Insurance Companies: By covering the risks associated with shipping, these companies charge premiums that add to their profits, often without bearing the day-to-day risks of maritime operations.

*Charterers and Shippers: These entities manage the logistics of transporting goods and frequently profit from delays or damages, while the workforce—seafarers—gains little.

While it's fair for each stakeholder to claim a portion of the profits based on their investment, the system frequently overlooks seafarers who are pivotal to operations.

An industrial shipyard with ships docked for maintenance

The Reality for Seafarers

For seafarers, the harsh reality of their profession starkly contrasts with the profits enjoyed by others in the supply chain. While ship owners reap financial benefits, seafarers grapple with numerous issues that often go unreported.

*Isolation: Long periods at sea can lead to feelings of loneliness and mental health struggles. Seafarers might miss crucial family milestones, such as birthdays and anniversaries, leading to emotional distress.

*Inadequate Compensation: Many seafarers earn low wages, which often fall below national minimums when considering the demanding work and risks involved. Reports indicate that many seafarers earn less than $1,000 per month despite the billion-dollar revenues in the shipping sector.

*Health and Safety Risks: Risk is prevalent in maritime jobs, with incidents like accidents and injuries occurring regularly. Even piracy remains a threat, with a reported 9% increase in piracy incidents in certain maritime routes last year.

*Working Conditions: Seafarers work extensive hours in tight living spaces, leading to physical and mental strain. The lack of enforcement of basic standards means that conditions can deteriorate further without consequence.

Towards Fair Compensation

Given the pivotal role of seafarers in the shipping industry, it is crucial to advocate for fair compensation and acknowledgment of their contributions. This need has gained momentum, with organizations and unions championing reforms for seafarers’ rights.

Implementing Fair Wage Policies

One of the critical steps to ensure fairness is adopting standardized wage policies. By linking pay to experience and skill levels, the industry can start addressing the longstanding disparity. For instance, wages could be structured to increase with the number of years worked on vessels, ensuring that long-serving seafarers receive compensation that reflects their expertise.

Providing Better Working Conditions

Enhancing onboard working conditions is vital for seafarers' health and morale. Implementing policies that mandate acceptable living conditions, reasonable hours, and access to healthcare can significantly improve their quality of life while at sea .

Mental Health Initiatives

Addressing mental health is another area that deserves attention. The industry should prioritise mental health programs that offer regular counseling and support. Incorporating tools for better communication with family members can help alleviate feelings of isolation, fostering stronger emotional ties despite long absences. Repatriations and timely reliefs are one of the most rewarding moments for the seafarers after a long and consistently stressful work time, diligently spent on board.

Industry Responsibility

Change cannot rest on ship owners alone; it is a collective responsibility across the industry. Every participant in the shipping business must acknowledge their role in supporting the seafarers who are essential to their success.

*Investing in Training and Development: Companies should foster programs that enhance seafarers' qualifications and safety understanding. This investment not only benefits the seafarers but also increases the reliability of shipping operations.

*Building a Culture of Respect: Cultivating an atmosphere that recognizes and values seafarers' contributions is vital. Acknowledgment of their hard work can boost morale and increase overall productivity.

*Collaborating for Solutions: Open dialogue among ship owners, financial entities, and maritime unions is critical for developing solutions that address seafarers' challenges while benefiting the entire industry.

A Call for Change

The shipping industry thrives through the collaborative efforts of many stakeholders. However, the crucial contributions of seafarers remain overlooked. As the backbone of this sector, they deserve recognition, fair pay, and improved working conditions.

By implementing substantive changes and nurturing a culture of respect, every party in shipping can create a scenario where seafarers benefit from their hard work. The oceans should serve not just as a workplace but as an environment that honors and respects the significant contributions of seafarers. Every stakeholder must unite in the pursuit of a fairer system that grants seafarers their rightful share of the pie.