Illegal Employment Fees: A Threat to Seafarer Welfare and the Shipping Industry

A new report from The Mission to Seafarers is shedding light on the prevalence of illegal employment fees that seafarers are being asked to pay in order to secure jobs on commercial ships. Despite being illegal under the Maritime Labour Convention, the survey conducted by Liverpool John Moores University found that nearly two-thirds of seafarers were aware of this practice. More than a fifth of respondents reported having been asked to pay recruitment or placement fees, with the average amount being $1,872. These fees were often disguised as service charges or agency/registration fees.

The report also revealed that seafarers experienced agents unlawfully withholding their documents until the fees were paid. In over half of the cases, the demands for fees came from crewing agents appointed by the shipping company. Indian citizens were the most likely to have experienced these demands, followed by Filipino and Burmese/Myanmarese citizens. The report emphasized the damaging impact of these fees on seafarers’ mental health, career opportunities, and labor shortages in the industry. Around 10 percent of seafarers are still in debt because of these fees.

The Mission to Seafarers intends for this report, along with a recent study by the Institute for Human Rights and Business and Sustainable Shipping Initiative, to inform discussions on amending the Maritime Labour Convention and other regulations related to seafarer recruitment and retention. The report highlights the need for better definitions of fees and charges, increased education and awareness, and the importance of financial literacy for seafarers and their families. Efforts to address these issues will be further discussed at The Global Forum for Responsible Recruitment and London International Shipping Week 2023.

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