Crew change crisis worsening: ICS

The number of seafarers affected by crew change restrictions could hit last year's peak or even higher, according to the International Chamber of Shipping (ICS).

There are currently 200,000 seafarers impacted by the crew change crisis — either unable to sign on or off ships — down from 400,000 this time last year, according to the ICS. But "the numbers are beginning to rise again", it said. There is particular concern about Indian seafarers, who make up approximately 14pc of the global maritime workforce, ICS' communications director Stuart Neil told Argus.

Argus' database shows that recent restrictions have been focused on India. In Europe, France now requires an antigen test if a passenger arrives from India, while Italy has restricted access to all passengers from India. Germany, Spain and others introduced similar measures focused on restricting incoming passengers from India. The ICS is worried that restrictions on Indian seafarers and on movements of ships that have recently called in India or neighbouring ports "could send further shockwaves through the global supply chain" and that Covid-19 surges in other countries could lead to "governments reneging on their promises to treat seafarers as key workers".

Access to vaccinations is also a concern for the ICS. "Governments must prioritise seafarers for the vaccine," it said. At the moment, only governments are allowed to purchase vaccines despite the shipping industry already committing to buy jabs for seafarers, the ICS said. "The cost that the industry faces due to crew change bans is far higher than the cost to vaccinate crew," it said.

The crew change crisis has been the main operational issue for most shipowners since the Covid-19 pandemic began, as many seafarers are forced to extend their contracts and remain on board. Shipowners have felt the financial impact. Frontline had to spend around $2.1mn on crew change requirements in the fourth quarter. And New York-listed tanker owner DHT Holdings' consumed around 16 days of scheduled off-hire in deviations and longer port stays to satisfy its crew change needs in the fourth quarter, slightly lower than 20.6 in the third quarter.

The need for PCR tests, quarantine facilities and international flights is adding to shipowners' costs, and this could cause freight rates to rise. Port delays, as workers are stranded on board, will also likely push rates higher as vessel availability tightens in the market.

The shipping industry has lobbied governments to classify seafarers as key workers but only around 60 countries have agreed. Shipowner Euronav recently highlighted the potential of the "humanitarian crisis" worsening unless governments do more to facilitate crew changes. Shipping charities and industry stakeholders have set up the Seafarers International Relief Fund, which has a target of raising $1mn to support seafarers and their families.

By Saleem Rizvi