A new report by Institute for Human Rights and Business (IHRB) highlights that according to new research, 31% of seafarers have been asked to pay a recruitment fee to get a job onboard a merchant vessel.
Of these, 28% were asked within the last eight months (ie in 2024) – demonstrating that this practice, despite being illegal under the Maritime Labour Convention1, is current and endemic. Furthermore, seafarers are accumulating intolerable levels of debt in order to secure a position on board a ship – with some being charged up to, or even more than, $10,000 for a job at sea. 74% of those asked to pay a fee did so.
Key highlights
- New research for 2024 shows that almost a third (31%) of seafarers have been asked to pay a recruitment fee to secure a job onboard a merchant vessel – of these, 28% were asked in 2024 – meaning the problem is both endemic and current.
- Almost half of those who were charged fees paid between $500 – $5,000, with some seafarers reporting being charged more than $10,000. The resulting levels of debt push many seafarers towards modern slavery conditions and are linked to unsafe conditions aboard ships, according to researchers.
- The research also includes findings on the mental health impacts of recruitment fees, with almost three quarters of seafarers saying recruitment fee requests impacted their mental health.
- The research found that 74% of those asked to pay a fee did so, possibly because they felt they had no choice. A staggering 80% of seafarers who were asked to pay illegal recruitment fees did not report the incidents to authorities, with many unaware that this practice is illegal.
- This Research Briefing from IHRB and TURTLE provides recommendations for shipping companies, cargo owners and government agencies to end this corrupt and illegal practice.
As explained, 62% said they were asked for a fee by a crewing or manning agent, 41% said they had been asked by another company or person linked to a crewing/ manning agent or a shipping company; 24% mentioned an online recruitment platform2 and 12% said by the shipping company itself.
This demonstrates that there are many company types, individuals, online and offline who are in the game of extorting money from seafarers in this way.
Furthermore, seafarers reported that in the majority of cases they did actually meet in person the agent asking for the recruitment fee. However, 40% handed over money to someone they had never met, possibly reflecting the level of desperation for a job.
RANK, VESSEL TYPE, NATIONALITY
In terms of rank, in 42% of cases the seafarers were officers at the time they were asked to pay a fee, while in 18% of cases they were cadets and in 43% were
ratings. This demonstrates that more senior ranks are just as likely to be asked to pay recruitment fees as lower ranks. In 25% of cases, seafarers were senior
officers at the time of being asked to pay a fee, and 8% were Masters ie ship captains.
3rd party recruitment company, small shipping company always asking the service charge. Specially all junior ranks suffers before joining ship. It’s
like seafarers are hostages or slaves.
..2nd“ Engineer, Bangladesh said.
Of those who actually paid, 40% were officers at the time. In terms of vessel type, 27% of cases involving fees were for jobs on board container ships. Container cargo owners must recognise the charging of recruitment fees as a significant problem in their tier 1 transport supply chains.
What needs to be done?
This updated research, like the results of last year’s briefing, demonstrates that the practice of charging seafarers recruitment fees is widespread and endemic in
the industry, and that resulting levels of debt are pushing many seafarers towards modern slavery conditions.
Priority actions for all relevant stakeholders include the following:
- Shipping companies need to ensure that seafarers employed on board their ships have not been charged recruitment fees to secure their work contracts.
- Shipping companies need to create opportunities for seafarers to report incidents and provide multiple and reliable channels to find a job without being
charged recruitment fees. - Customers of shipping companies – including charterers, commodity companies and traders, and container cargo owners – have a responsibility
to carry out due diligence on this issue with their shipping suppliers. - As the payment of recruitment fees is prohibited under the Maritime Labour Convention, flag state and port state authorities of countries who have
ratified the Convention are required to investigate any reports of the charging of recruitment fees. - Home states (where manning agencies are based) have an obligation to ensure that manning agencies do not charge fees for jobs, and enact and enforce
penalties for such practices. - Greater efforts are needed to build awareness of the illegality of the charging of recruitment fees, among seafarers, national authorities, ship operators and cargo owners.
- Effective mechanisms are required to penalise offending agencies and to provide remedies for seafarers who have paid illegal recruitment fees,
including possibly, reimbursement by employers of fees already paid. - Seafarers need to know how and where to report such practices.
- There needs to be a direct link between shipping companies and seafarers so that seafarers have a safe gateway to their employers.
