The naval forces of Iran’s Islamic Revolutionary Guard Corps recently seized the MSC Aries, a Portuguese-flagged container ship, in the Strait of Hormuz and detained its multinational crew. This incident is the latest in a series of escalating tensions in the region, with the Houthis of Yemen attacking ships they believe to be linked to Israel and its allies. The vulnerability of seafarers in unsafe waterways is exacerbated by the lack of global regulation in the shipping industry, with ships being registered in different countries and crewed by individuals from various nationalities.
The practice of “flags of convenience” allows shipping companies to register their vessels in countries with minimal regulations and hire crew from countries where well-paid jobs are scarce, resulting in poor working conditions and low wages for seafarers. This practice began in the 1920s in the United States as a way to circumvent restrictions on alcohol transportation, and has persisted due to the financial benefits for ship owners. The International Transport Workers’ Federation has been campaigning against flags of convenience since 1948, advocating for better labor protection standards for seafarers.
Flags of convenience provide the shipping industry with low-cost, low-bureaucracy services, resulting in minimal regulation, cheap registration fees, and the freedom to employ cheap labor globally. Despite the United Nations Convention on the Law of the Sea requiring a “genuine link” between a vessel and its flag state, many flag registries lack interest in enforcing labor protection standards, prioritizing profit over the well-being of seafarers. Seafarers on flag of convenience ships often face low wages, poor living conditions, inadequate provisions, and long periods of work without proper rest.
The International Transport Workers’ Federation works alongside its affiliates to ensure transport workers’ rights are upheld through collective bargaining, strengthening international and national regulations. The organization’s global inspectorate conducts routine inspections of ships in ports worldwide to ensure seafarers have decent pay, working, and living conditions. Despite these efforts, seafarers continue to face wage theft, underpayment, and rights abuses with impunity. The federation has recovered millions in unpaid wages from ship owners operating under flags of convenience.
The system of flags of convenience places seafarers at risk by requiring them to sail through unsafe areas without the ability to push back against dangerous conditions. The lack of transparency in the shipping industry and the absence of a genuine link between vessel owners and flag states contribute to the abuse of seafarers’ rights. The United Nations and its relevant bodies must provide clarity on the genuine link requirement to hold ship owners and flag states accountable. Until flags of convenience are held to higher standards, seafarers will continue to face exploitation and danger at sea.
It is crucial for the shipping industry to prioritize the safety and well-being of seafarers over profit and to close the jurisdictional vacuum that allows flags of convenience to operate without proper regulation. Only with increased transparency, accountability, and adherence to international standards can seafarers be protected from abuse and exploitation at sea.
