Action Group on Seafarer Recruitment Fees

Summary

  • Our research shows that 31% of seafarers globally have been asked to pay a recruitment fee.
  • Recruitment fees can result in significant and long-term debt, and are prohibited under the ILO Maritime Labour Convention 2006 (as amended). 
  • Working collaboratively with shipping companies, charterers, governments, container cargo owners and civil society, the Action Group on Seafarer Recruitment Fees was established by IHRB and TURTLE to work out ways to reduce and ideally eliminate this illegal and damaging practice.

Background

Recruitment fees can comprise a host of hidden charges, including e.g. monthly salary deductions, uniforms, travel to and from the vessel, gifts, visas and travel permits. 

Seafarers should not have to pay for a job. It is illegal under the Maritime Labour Convention 2006 (as amended) – the wording is clear: "MLC Reg/Std A1.4: no fees or other charges for seafarer recruitment or placement… are borne directly or indirectly, in whole or in part, by the seafarer, other than the cost of … medical certificate, the national seafarer's book and a passport."

IHRB and TURTLE have together published research in 2023 and 2024 that indicates the extent of the problem. 

The problem is particularly pervasive in India, where many seafarers originate and where the incidence of fee-charging was the highest, followed by Ukraine, Nigeria, the Philippines, Ghana, and the United Kingdom – however, it remains a global problem. 

The charging of recruitment fees is often by unethical crewing agencies, but can also be ‘hidden’ charges by informal middle men, making the practice sometimes hard for ship operators to detect. 

Many seafarers may not be aware the practice is illegal, and our research shows that even among those who do, they are reluctant to report or don’t know who to report to. 

Aims and outcomes

The Action Group on Seafarer Recruitment Fees is a loose coalition of industry stakeholders who wish to work collectively to eliminate seafarer recruitment fees.

The group consists of around 40 participants, including shipowners, ship managers, charterers, container cargo owners, investors, P&Is and insurers. These include (but are not limited to) CMA CGM, Maersk, NYK, Odfjell, Wilhelmsen Ship Management, IMC Ship Management, Anglo Teck, LDC, Mercuria, IKEA, Coles, Gard.  

The group’s activities include:

  • Creating and disseminating a toolkit for companies to check for and eliminate fees in their supply chains.
  • Advocate with government and industry to address the issue. 
  • Raise awareness among seafarers or their rights.
  • Encourage contract clauses that protect seafarer rights (cf the Delivering on Seafarers’ Rights Code of Conduct). 
  • Sign up to the Responsible Recruitment Register.

The activities above will be underpinned by IHRB’s wider programme activities on improving respect for seafarers’ rights across the board.

Who is this initiative relevant to?

  • Industry stakeholders, including shipowners, operators, managers, charterers and cargo owners, who wish to improve respect for the rights of the world’s 1.9 million merchant seafarers.
  • Investors, P&I Clubs, insurers who have an interest in improving the experience and image of the maritime industry.
  • Policymakers and regulators shaping housing policies and investment frameworks.

Contact

Contact Francesca Fairbairn to find out more or to get involved: francesca.fairbairn@ihrb.org