Research finds almost a third of seafarers have been asked to pay illegal recruitment fees

26 September 2024

Summary

  • Almost a third (31%) of seafarers have been asked to pay a recruitment fee to secure a job onboard a merchant vessel, according to new research. The findings show recruitment fees are endemic, despite being illegal under Maritime Labour Convention.
  • Seafarers and Illegal Recruitment Fees: 2024 Insights, published on World Maritime Day, is a joint publication by the Institute for Human Rights and Business (IHRB) and TURTLE, an ethical maritime recruitment platform.
  • The Research Briefing provides recommendations for shipping companies, cargo owners and government agencies to end this corrupt and illegal practice.

New research 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. 

Seafarers and Illegal Recruitment Fees: 2024 Insights, published on World Maritime Day, is a joint publication by the Institute for Human Rights and Business (IHRB) and TURTLE, an ethical maritime recruitment platform. It mirrors findings from 2023, showing the practice of charging recruitment fees - illegal under the Maritime Labour Convention - continues to be widespread and endemic. Recruitment fees are creating a ‘pay to play’ model, which prioritises fee-paying recruits instead of the most qualified.

This year’s survey 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. 

Francesca Fairbairn, who leads IHRB’s work on shipping and commodities, said:

"Recruitment fees are an injustice that no worker should face, least of all seafarers who keep goods moving around the world, often in challenging conditions. And yet, our research shows these illegal fees are endemic in shipping - and not only endemic but often exorbitant. What’s more, the financial stress they endure can lead to unsafe working conditions on board ships. Seafarers deserve better.

"Part of the problem is lack of awareness among shipping companies and cargo owners that workers pay such fees - they must ensure seafarers aboard vessels they are associated with are not victims of illegal recruitment fees."

Isabelle Rickmers, the CEO and founder of TURTLE said:

"The fact that one in three seafarers are affected, regardless of rank and nationality, is deeply concerning. We simply can no longer ignore this when we aim to move towards clean supply chains.

This illegal practice prevents future talent from entering the industry – and this concerns us all."

Lack of awareness

The research found that 74% of those asked to pay a fee did so, in part due to a lack of awareness. 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. Researchers say the findings call for increased awareness among all stakeholders in the industry about the illegality of these fees, and to provide clear, accessible channels for reporting such practices.

Recommendations

IHRB and TURTLE call for leadership and action from shipping companies, cargo owners and government agencies to end this corrupt and illegal practice.

  • 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 crewing agencies are based) have an obligation to ensure that crewing 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 (e.g. port or flag state authorities, employer, crewing agency and unions). There needs to be a direct link between shipping companies and seafarers so that seafarers have a safe gateway to their employers.
What I experienced is giving money under the table to give me a rotation/or contract by the fleet manager of manning agency, if we don't give them, I need to wait for a long time for my next ship assignment.
As a seafarer we already have lots of difficulties in our life. We have difficulties completing our cadetship and clearing the mate exams with the salary we get as a cadet. The financial difficulties and the burden to take care of our loved ones makes it emotionally more difficult than any other.

About the research

The survey was conducted by TURTLE between May and July 2024. 2,627 seafarers responded. The survey was also disseminated by the International Transport Workers Federation (ITF), the Mission to Seafarers, ISWAN and members of the Sustainable Shipping Initiative among their seafarer networks.