Declining wages and longer spells at sea are threatening to plunge the shipping industry into a recruitment crisis unless fundamental changes are made to working conditions, a new report has found.
The survey by the Mission to Seafarers charity asked 10 key questions about day-to-day life and working conditions to gauge the mood of crews around the world.
Overall satisfaction had fallen from 7.7 out of 10 at the end of 2022, to an average of 6.7 today, with each question showing a decrease in contentment.
In the UAE, harsher penalties have been introduced for the abandonment of vessels by shipping companies, a tool used by some to exploit gaps in workers' rights at sea. The move has led to fewer cases of seafarers appealing for help.
Abuses at sea will continue until strict accountability and an improved deterrence against poor business activities are truly addressed
David Hammond,
Human Rights at Sea
Globally, the latest Seafarers Happiness Index found a significant drop in scores related to welfare post-Covid-19.
The pandemic exposed major fault lines in shipping when port restrictions meant many crew were left stranded or awaiting repatriation for months.
Since then, changes have been made but charities said crew continued to report a decline in working conditions.
“It is not surprising to find this report shows seafarers are still having contractual issues, especially with shore leave, [and not enough] food and water on board,” said Chirag Bahri, international operations manager at the International Seafarers’ Welfare and Assistance Network.
“These are common issues that are also reported via our helpline.
The survey found the most significant rating drops were in the general happiness of crews, shore leave and the workload, showing a decrease of around 8 per cent.
“Generally, after Covid there has been a reaction and crew are more reluctant to go back to sea,” said Mr Bahri.
“There are questions about what the future looks like with greener shipping, and how do we fill the requirement for the number of officers required in the market when there is not much interest to join the industry.
“There is a mix of shipping companies across the globe and we are working daily with the large groups that do take good care of seafarers and their welfare, but there are also substandard companies.
“These companies have little interest in welfare issues and that is also highlighted in the survey.
“Crew working on abandoned ships or who have had issues with their day-to-day work or sign-off often come to us with these problems.”
Booming business
The global sea freight forwarding market size reached $78.6 billion (Dh288bn) in 2022, with China, Greece, Japan, the US and Germany the largest shipowners.
Due to its strategic location, the UAE has become a central global shipping hub, with some of the busiest ports in the world handling millions of containers every year.
The Mission to Seafarers report claimed multiple people had come forward about conditions relating to food and water on board ships.
“There were troubling messages concerning ships running out of stores, and also staggering reports about having little or no access to potable water, or even being charged a monthly fee for drinking water,” it said.
Welfare groups said messages from seafarers painted a worrying snapshot of the conditions they are experiencing.
“There needs to be more analysis of what is causing this low morale. Is it abandoned seafarers registering complaints about not enough food and water, or is it a more general issue within the industry?” asked Mr Bahri.
“Some crew are unaware their ship has been abandoned.
“According to the International Maritime Labour Convention, if the crew have not been paid for two months or had adequate regular food and water in that time, then the vessel is abandoned.
“It highlights the need for more awareness training for workers looking to go to sea, and what kind of challenges they may face.”
Tougher penalties
Often, if shipping companies run into financial difficulties crew are the first to experience hardship, especially if a vessel is at sea anchorage.
After a spate of pre-Covid abandonments in UAE waters, laws were introduced in 2021 to penalise vessel owners with a Dh20,000 fine and a further Dh10,000 for each seafarer on board.
Repeat offenders can have fines doubled and company licences cancelled.
The framework appears to be acting as a deterrent with no current cases of abandonment reported to the Dubai office of the Mission to Seafarers in UAE waters.
Calls for more accountability for crew welfare by the shipping industry have been made, with concerns the survey results only offer a brief snapshot of a wider malaise.
In New Zealand, shipping levies are paid to the state to sustainably fund onshore, multi-faith seafarer welfare facilities.
It is a model that could be replicated across the world, according to David Hammond, chief executive of the UK group Human Rights at Sea.
“The Seafarer's Happiness Index is one important measure of seafarer concerns within the global shipping industry,” he said.
“But it also underlies the continuing need for much greater state accountability for commercial shipping activities under state control, within territorial waters regulated through port state controls.
“Abuses at sea will continue until strict accountability and an improved deterrence against poor business activities is truly addressed.”
Veere di Wedding
Dir: Shashanka Ghosh
Starring: Kareena Kapoo-Khan, Sonam Kapoor, Swara Bhaskar and Shikha Talsania
Verdict: 4 Stars
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
UAE currency: the story behind the money in your pockets
LA LIGA FIXTURES
Friday Celta Vigo v Villarreal (midnight kick-off UAE)
Saturday Sevilla v Real Sociedad (4pm), Atletico Madrid v Athletic Bilbao (7.15pm), Granada v Barcelona (9.30pm), Osasuna v Real Madrid (midnight)
Sunday Levante v Eibar (4pm), Cadiz v Alaves (7.15pm), Elche v Getafe (9.30pm), Real Valladolid v Valencia (midnight)
Monday Huesca v Real Betis (midnight)
The currency conundrum
Russ Mould, investment director at online trading platform AJ Bell, says almost every major currency has challenges right now. “The US has a huge budget deficit, the euro faces political friction and poor growth, sterling is bogged down by Brexit, China’s renminbi is hit by debt fears while slowing Chinese growth is hurting commodity exporters like Australia and Canada.”
Most countries now actively want a weak currency to make their exports more competitive. “China seems happy to let the renminbi drift lower, the Swiss are still running quantitative easing at full tilt and central bankers everywhere are actively talking down their currencies or offering only limited support," says Mr Mould.
This is a race to the bottom, and everybody wants to be a winner.
Empires%20of%20the%20Steppes%3A%20A%20History%20of%20the%20Nomadic%20Tribes%20Who%20Shaped%20Civilization
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EKenneth%20W%20Harl%3Cstrong%3E%3Cbr%3EPublisher%3A%20%3C%2Fstrong%3EHanover%20Square%20Press%3Cstrong%3E%3Cbr%3EPages%3A%20%3C%2Fstrong%3E576%3C%2Fp%3E%0A
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
UAE currency: the story behind the money in your pockets
Rafael Nadal's record at the MWTC
2009 Finalist
2010 Champion
Jan 2011 Champion
Dec 2011 Semi-finalist
Dec 2012 Did not play
Dec 2013 Semi-finalist
2015 Semi-finalist
Jan 2016 Champion
Dec 2016 Champion
2017 Did not play