Report Reveals Extent of Illegal Recruitment Fees Charged to Seafarers

A new report by Liverpool John Moores University (LJMU) and The Mission to Seafarers has revealed the extent of illegal recruitment fees being charged to seafarers, in violation of the Maritime Labour Convention.

The report, titled Survey on Fees and Charges for Seafarer Recruitment or Placement, sheds light on the issue of seafarers being forced to pay illegal fees and charges. The report includes a survey of over 200 seafarers, with almost 65% of respondents stating they were aware of illegal demands for recruitment or placement fees.

The survey found that 92% of respondents believe that illegal fees charged during seafarer recruitment should be eliminated. Indian citizens were most affected, with 29% of cases involving them and 36% of demands made in India. Crewing agents were responsible for 58% of illegal demands, with 56% of demands described as a ‘service charge’.

Fees ranged from US $50-$100, up to $7,500, with the average being $1,872. The report found that 10% of seafarers affected are still in debt, and 29% had their documents unlawfully withheld during the process, including their Continuous Discharge Certificate/Seaman’s book, passport, or Certificate of Competency.

The Maritime Labour Convention (MLC) prohibits seafarers from paying fees for recruitment, placement, or employment, except for certain documents. However, the report confirms that seafarers are still being coerced into paying illegal fees, despite the MLC’s adoption in 2013.

Illegal recruitment fees in the seafarer industry can have significant impacts on seafarers and their families, including financial burden, mental health strain, and limited career opportunities. The worst cases can lead to human rights violations, such as debt bondage and exploitative working conditions. This issue also poses a reputational risk for the shipping industry and exacerbates labor shortages, discouraging existing and future seafarers from pursuing careers at sea.

The report is part of a discussion at The Global Forum for Responsible Recruitment, which brings together various groups to discuss responsible recruitment on a global scale.

Ben Bailey, The Mission to Seafarer’s Director of Programme, spoke at the Forum on the specific challenges faced by seafarers in terms of their employment and working conditions.

“This report confirms what seafarers have told us informally when it comes to the scourge of illegal fees and charges that so many of them are being coerced into paying in return for employment,” said Bailey. “Not only does the data shed new light on this phenomenon, the anecdotal feedback from seafarers also further reveals how widespread and damaging this problem is to individuals and their families.”

Bailey said illegal charging of fees for seafarer recruitment harms seafarers and their families, as well as the reputation of the shipping industry. He said meaningful action is needed from regulators, shipping companies, and the recruitment sector to eliminate this practice and retain talented seafarers.

Dr. Christos Kontovas, LJMU report lead author, said the study sheds light on the disturbing reality of seafarers being subjected to illegal fees and charges.

“These practices can trap seafarers in debt bondage, compelling them to endure exploitative and abusive working conditions,” said Dr. Kontovas. “What is truly disheartening though is that such practices tarnish the image of the maritime industry, leading to its perception as exploitative and unfair. This, in turn, has the potential to discourage aspiring seafarers from pursuing their dreams. We are, currently, exploring strategies to mitigate these practices, aiming to contribute towards addressing this deeply serious problem.”

Recommendations to tackle seafarer recruitment issues include better definitions of fees and charges and increased education and awareness. The importance of financial literacy for seafarers and their families is also highlighted, with the WeCare Financial Literacy program providing money management tools to help manage income and spending.

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