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| 1 minute read

Navigating employment challenges: Red Sea conflict's impact on shipowners and seafarers

The conflict in the Red Sea poses significant safety considerations and complex challenges for both shipowners and seafarers. 

From an employment perspective, the impact is likely to escalate employment costs, particularly since the International Bargaining Forum (IBF) designated the southern section of the Red Sea and the strait as a High-Risk Area as of December 22, 2023. This designation triggers increased costs for shipowners, as seafarers covered by IBF agreements are entitled to double their basic pay, along with double compensation for death or disability.

Beyond the financial implications, shipowners face a duty to repatriate seafarers, whether they are employees or not, in accordance with the Maritime Labour Convention Minimum Requirement Regulations. If the vessel's rerouting, done to circumvent the Red Sea conflict, extends the journey duration and leads to the expiration of the Seafarer Employment Agreement (SEA), shipowners are obligated to facilitate the repatriation of the affected seafarers at no cost to them. 

Additionally, shipowners are compelled to repatriate employees when a seafarer is no longer capable of performing their duties under the SEA or when it is unreasonable to expect them to do so, especially in specific circumstances such as the ship heading towards a war zone without the seafarer's consent.

Considering the tumultuous recent years in shipping, marked by challenges like the Russia-Ukraine conflict and the global COVID-19 pandemic, shipowners may have already developed some level of preparedness for unexpected events. However, the unique dynamics of the Red Sea conflict necessitate a comprehensive understanding of safety protocols, employment agreements, and contingency plans to effectively navigate the heightened risks and responsibilities.”

"This designation triggers increased costs for shipowners, as seafarers covered by IBF agreements are entitled to double their basic pay, along with double compensation for death or disability"

Tags

shipping, logistics, marine, yemen, red sea, employment law, suez canal, transportation, supply chain