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Fight between commodity giants and shippers leaves sailors stranded
(Bloomberg) – A standoff between commodity giants and shipping companies prolongs the work-at-sea crisis, with around 200,000 seafarers still stranded on their ships beyond the expiration of their contracts and beyond the demands of the globally accepted safety standards. In an effort to keep deliveries of food, fuel and other raw materials on schedule, some of the major commodity companies are avoiding chartering certain vessels or imposing conditions that could block relief for exhausted sailors. Companies are trying to avoid crew changes, which have become much more expensive and time consuming during the coronavirus outbreak. In order to keep shipments on schedule, some companies have asked their shipping partners to guarantee that no changes will take place, according to emails and contracts reviewed by Bloomberg. These requirements have the potential to exacerbate a labor crisis. already in its 12th month, according to the ship. owners, unions and the United Nations. More than a year after the start of the pandemic, hundreds of thousands of seafarers have long waited for leave ashore. Some worked without pay or a firm repatriation plan, and many took desperate measures: in one case, a captain diverted his ship to the middle of the ocean and refused to return to course without a guarantee of relief. pandemic, a shipowner could bring in a new crew during routine port calls. This common practice has become a logistical nightmare with the Covid borders. Some ports require long quarantines for inbound and outbound workers, others refuse ships that changed crew within 10-14 days, fearing sailors could spread the virus. In January, around 300 companies, including Vitol Group, the world’s largest independent oil trader, and Australian mining giant Rio Tinto Group, signed a pledge to take action to resolve the seafarers’ crisis. Called “the Neptune Declaration,” the signatories recognized a “Shared responsibility” and promised increased collaboration between ship operators and charterers to facilitate crew changes. the biggest charterers have signed up. “We chose not to sign because we believe our current crew change practices are fair and fully respect the need for regular crew changes,” said a spokesperson for Equinor ASA, a large oil, gas and energy company based in Stavanger, Norway. “We do not charter any vessels for a voyage if a crew change is required and cannot be factored into our delivery schedule.” Exxon Mobil Corp., America’s largest oil and gas producer, also declined to sign. A spokesperson said the company “is considering the next steps.” The pact is “a work in progress,” said Rajesh Unni, captain and CEO of Synergy Marine, which manages more than 375 ships, including container ships and freight carriers. Shipping has always had competing interests, he said, but the companies signing the Neptune declaration “at least commit to following standard protocol, which should give you a lot more convenience then than now.” , we are all on the same page. “What you need to know: Tracking the Work at Sea Crisis The struggle over who should pay the higher costs of crew changes is most acute for commodity companies and their shipping partners, who carry out what are called cash charters. According to industry group BIMCO, with crewed vessels available on request from days to months, cash charters account for 85% to 90% of dry bulk and tanker shipments in the raw materials industry. for verbal guarantees before hiring a charter, according to emails and contracts reviewed by Bloomberg. Charterers have also used questionnaires to find out whether the ships are planning crew exchanges, according to the shipowners. In one case, a shipowner told Bloomberg that in order to get a charter with Rio Tinto, he had to extend workers’ contracts, pay extra wages and promise to raise them after the voyage was completed. He also had to confirm that no crew change was planned for the duration. “Rio Tinto does not use ‘no crew change’ clauses in charter contracts,” the company said in a statement. “Rio Tinto aims to support the shipping industry and the human rights of the seafarers it depends on. This requires collaboration between shipowners, who employ seafarers, charterers and regional port authorities around transparency of information and flexibility in deadlines. Ship captains often hold their crew’s passports – a convenience for port calls, they say – and ports are tightly controlled borders. Even if a worker wanted to get away from his ship, he wouldn’t get very far without a passport, visa or plane ticket to get home. The International Transport Workers Federation, or ITF, which represents seafarers , appeals to industry. “ There are still charterers who reject charters unless they are given assurances that crew changes are not taking place, ” said Stephen Cotton, ITF general secretary. “ It may not be as blatant as putting it in writing, but it continues. As long as the lives of seafarers remain secondary to corporate profits, this crisis will continue to unfold. “Read more: What happens when tycoons abandon their own giant cargo ships? The safety and well-being of seafarers on board their ships. BIMCO urged charterers to share the costs of crew changes and developed contractual language that requires companies that lease ships for a fixed period – called time charter – to do Shipowners available for cash charter, the group said, should change crew when the vessel is not for hire Labor and industry groups want companies to be more flexible and allow tankers and dry bulk vessels to divert or delay deliveries to help alleviate stranded sailors crisis Shareholders too: A group of 85 investors who manage more than $ 2 trillion in assets, including Fidelity International, said in January that frequent charters rs should be flexible to allow crew changes and should consider providing financial support to seafarers who need to be repatriated. “Charterers at this point have to share the costs and shoulder any delays they might face,” said Laura Carballo, head of maritime law and policy at World Maritime University in Malmö, Sweden. “That’s their main argument: it’s about delays. Sorry, we are all facing delays right now. The world only works because seafarers do their job. Wichita, Kansas-based Koch Industries, which has interests spanning oil and agriculture, has asked shipowners not to change crews during their charter, according to a person with the terms and who asked. not to be identified because the conversations were private. The requests were transmitted orally and not in writing. In response to questions about the stipulation, the company responded in a statement, “Koch works closely with ship owners to ensure the safety and well-being of crew members. This is a problem that we are watching closely and looking for ways to resolve it. they were not allowed to speak publicly. Vitol claims to have “sought to manage our shipping business in accordance with the standards set out in the Neptune statement.” “Where commercially and operationally possible, we facilitate crew changes,” said company spokesperson Andrea Schlaepfer. “As a vessel owner and manager, Vitol appreciates the challenges of the current situation, but believes that with good management owners can maintain high standards of seafarer welfare.” The Neptune Declaration also calls on world leaders to change their port and border policies to ease the burden. on seafarers, following a September statement from consumer companies, including Unilever Plc and Procter & Gamble Co., to do the same. Last month, the IMO recognized 55 countries that agreed to view seafarers as “essential workers” and encouraged countries that had not yet done so. This designation does not have an official definition, and countries were not specific about any changes it would make to port procedures. On Friday, the shipping industry expressed concerns that while the Number of stranded sailors has dropped since its peak, the improvements could be short-lived as governments and port authorities respond to the threat of new variants of Covid-19 with tighter restrictions. Seafarers, many of whom are from developing countries, are also at risk of missing ongoing vaccination campaigns, risking further delays and supply chain disruptions. represents more than 80% of the world merchant fleet. “Governments will not be able to immunize their citizens without the shipping industry or, most importantly, our seafarers.” (Updates with recent statements from the shipping industry on the threat of new Covid-19 variants to efforts to relieve seafarers.) Articles like this please visit us on bloomberg.com Subscribe now to stay ahead with the most trusted source of business news. © 2021 Bloomberg LP
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