Bloomberg
Fighting between commodity giants and suppliers traps sailors
(Bloomberg) – A disagreement between commodity giants and shipping companies is prolonging the labor crisis at sea, with an estimated 200,000 seafarers still stuck on their vessels after the expiration of their contracts and exceeding the requirements of globally accepted safety standards. In an effort to keep deliveries of food, fuel and other raw materials on schedule, some of the large commodity companies avoid employing certain vessels or imposing conditions that could alleviate the depleted seafarers. The companies are trying to get away from crew changes, which became more expensive and time consuming during the coronavirus outbreak. In an effort to keep shipments on schedule, some businesses have asked their shipping partners to guarantee that no change will take place, according to emails and contracts reviewed by Bloomberg. According to the requirements, a labor crisis can worsen as early as the twelfth month. owners, unions and the United Nations. For more than a year in the pandemic, hundreds of thousands of seafarers have long been out of whaling leave. Some worked without pay or a fixed plan for repatriation, and many took desperate measures: in one case, a captain diverted his ship to the middle of the ocean and refused to return course without a guarantee of relief. pandemic, a shipowner can bring in new crew members during routine port. That common use has become a logistical nightmare with Covid curbs. Some ports require long quarantines for incoming and outgoing workers, others reject vessels that have changed crews within 10 to 14 days, for fear that seafarers may spread the virus. In January, about 300 companies, including Vitol Group, the world’s largest independent oil trader, and the Australian mining cattle Rio Tinto Group, signed a pledge to take action to resolve the crisis for seafarers. Signatories called ‘the’ Neptune Declaration ‘, acknowledging a’ shared responsibility ‘and promising increasing co – operation between ship operators and charterers to facilitate crew changes. As of now, some shipowners and labor advocates say little has changed, and not all major 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 spokesman for Equinor ASA, a major oil and gas company. and energy business in Stavanger, said. Norway. “We do not rent vessels for any voyage if there is to be a crew that cannot be accommodated in our delivery schedule.” Exxon Mobil Corp., the largest U.S. oil and gas producer, also declined to sign. A spokesman said the company was considering next steps. The treaty is a work in progress, ‘said Rajesh Unni, a captain and chief executive officer of Synergy Marine, who manages more than 375 ships, including cargo containers and commodity carriers. Shipping has always had competing interests, he said, but companies that sign the Neptune Declaration “at least commit themselves to following the standard protocol, which will then give you more ease that we are all on the same page now. ‘What you need to know: detecting the labor crisis at sea The battle over who should pay the higher costs for crew costs is the worst for commodity companies and their shipping partners, called charters. Limited vessels, according to the industry group BIMCO, have 85% to 90% of dry bulk and tankers available in the commodity industry on demand, from a few days to a few months. for verbal guarantees before renting a charter, according to emails and contracts reviewed by Bloomberg. According to shipowners, tenants also used questionnaires to determine whether ships were planning crew exchanges. In one case, a shipowner told Bloomberg that he had to get a charter with Rio Tinto, that he had to extend the workers’ contracts, pay an additional salary and promised to ease it when the voyage was complete. He also had to confirm that no crew change was planned for the duration. “Rio Tinto does not use ‘no crew change’ clauses in leases,” the company said in a statement. “Rio Tinto aims to support the shipping industry and the human rights of seafarers on whom it depends. It requires co-operation between shipowners, who employ the seafarers, charterers and regional port authorities on the transparency of information and flexibility according to schedule. ” According to laborers and seafarers, the problem is that workers do not have one way or another. Ship captains often own the passports of their crew – a convenience for port stops, they say – and ports are strictly controlled borders. Even if a worker wants to get away from his vessel, he will not get very far without a passport, a visa or a plane ticket. The International Transport Workers’ Federation, or ITF, which represents seafarers, appeals to the industry. to do more to alleviate the crisis. “There are still tenants who reject charters unless they are assured that the crew will not change,” said Stephen Cotton, ITF general secretary. ‘It may not be as blatant as putting it in writing, but it’s still going on. As long as the lives of seafarers remain subordinate to the profits of companies, this crisis will continue to unfold. ‘Read more: What happens if the madmen abandon their own giant cargo ships? The industry says it is the responsibility of shipowners to change the crew and ensure the safety and well-being of the seafarers on their vessels. BIMCO encouraged tenants to share the cost of crew changes and developed the contract language that requires businesses that rent vessels for a set period of time – called a time lease – The group said that owners of ships available for charter, of crew must change when the ship is not for hire. Labor and industry groups want companies to be smoother and be able to deliver tankers and dry bulk vessels or delay deliveries. to help alleviate the crisis in stranded sailors. Shareholders too: A group of 85 investors managing more than $ 20 billion in assets, including Fidelity International, said in January that regular card Rers should be flexible to enable crew changes and consider providing financial support to seafarers who need to repatriate word. “At this stage, tenants need to share the costs and accept the delays they may experience,” said Laura Carballo, head of maritime law and policy at World Maritime University in Malmo, Sweden. ‘This is their biggest argument: it’s about the delays. Sorry, we are currently all facing delays. The world runs only because seafarers do their job. Wichita, Koch Industries, based in Kansas, which has interests in petroleum and agriculture, instructed owners with direct knowledge of shipowners not to make crew changes. the terms and who asked not to be identified because the conversations were private. The requests were responded to orally, not in writing. In response to questions about the provision, the company replied in a statement: ‘Koch is working closely with vessel owners to ensure the safety and well-being of crew members. This is an issue that we are closely monitoring and looking for ways to resolve. ‘The Vitol-based Vitol required that shipowners would not change the crew on some handles, according to people familiar with the company’s contract terms and asked not to be identified, they were not authorized to speak in public not. Vitol says that he “tried to run our shipping business in accordance with the standards set out in the Neptune Declaration.” “Where this is also commercially and operationally possible, we are facilitating the change of crew,” company spokeswoman Andrea Schlaepfer said in a statement. “Vitol appreciates the challenges of the current situation as a vessel owner and driver, but believes that good management owners can maintain a high standard of wealth for seafarers. ” The Neptune Declaration also calls on world leaders to change their port and border policies to alleviate the burdens. 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 consider seafarers as “essential workers”, and encouraged countries that have not yet done so. The name has no official definition, and the countries were not specific about any change it would bring to the port procedures. On Friday, the shipping industry expressed concern that the number of seafarers stranded since the peak may be short-lived, as governments and port authorities respond to the threat of new Covid-19 variants with stricter restrictions. Seafarers, many of whom are from developing countries, may also miss out on continuous vaccinations, risking further delays and disruptions in the supply chain. “The crisis is still going on,” said Guy Platten, secretary general of the International Chamber of Shipping, representing more than 80 percent of the world’s merchant fleet. “Governments will not be able to vaccinate their citizens without the shipping industry or, especially the seafarers.” (Updates with recent statements from the shipping industry about the threat of new Covid-19 variants for efforts to alleviate seafarers.) 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