Syllabus: GS3/Economy
Context
- As the conflict in West Asia continues and ships remain stranded near the strategic Strait of Hormuz, industry stakeholders are warning of a rising risk of seafarer abandonment.
What is Seafarer Abandonment?
- Seafarer abandonment occurs when shipowners fail to pay wages, provide supplies, or arrange repatriation, leaving crews stranded on vessels or in foreign ports.
- Under the Maritime Labour Convention (MLC) 2006, abandonment includes failure to:
- Pay wages for at least two months,
- Provide basic maintenance and supplies, or
- Arrange crew repatriation.
- Abandonment cases are common in busy maritime hubs such as Turkey and the United Arab Emirates, particularly around the Persian Gulf region.
Status of Abandonment
- International Transport Workers’ Federation (ITF) data shows 6,223 seafarers were abandoned across 410 ships in 2025. By nationality, India recorded the highest number (1,125), followed by the Philippines, Syria, Indonesia and Ukraine.
- India is among the top three suppliers of seafarers globally. Maritime transport carries 90–95% of global trade by volume, with more than 1.8 million seafarers operating merchant ships worldwide.
Reasons Behind Abandonment
- Financial Stress: Shipowners may abandon vessels due to high operational costs, volatile freight rates, debt, bankruptcy, or geopolitical conflict.
- Flag of Convenience (FOC): The FOC system allows ships to register in countries with lenient regulations and lower taxes, weakening labour protections.
- About 30% of the global merchant fleet sails under FOC flags.
- Nearly 90% of abandoned vessels in 2024 were registered under FOCs.
- Panama recorded the highest abandonment cases among flag states in 2025.
Impacts
- Abandoned seafarers often face loss of wages and heavy recruitment debts, shortage of food, fuel and drinking water & inability to disembark due to visa or port restrictions.
- The conflict has disrupted shipping near the Strait of Hormuz, through which nearly one-fifth of global oil trade passes.
- India imports nearly 90% of its crude oil, with 46–55% sourced from West Asia.
- A $10 increase in oil prices could widen India’s current account deficit by about 0.36 percentage points.
Source: TH
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