Lessening the burden of abandonment

Thomas Brown, managing director of UK-based marine insurance intermediary Seacurus, says the MLC promises to be a ‘watershed moment’ for the shipping industry.

“Prior to MLC, there had been a lack of political will or force of law to encourage the insurance industry to provide a workable system of financial security. But that will change with the implementation of MLC,” he says.

Seacurus has launched an insurance policy to indemnify seafarers in the event of financial default of their employers, which will enable employers to meet their obligations under MLC.

“Effective employment protection must include crew wages,” says Nick Maddalena, director of Seacurus. “For that reason, CrewSEACURE provides an effective system of financial security to put an end to the spectre of seafarers becoming the cashflow casualties of their employer’s insolvencies.”

The insurance will cover the cost of repatriating abandoned crew, as well as providing accommodation, subsistence and medical treatment before repatriation. It also covers unpaid wages, so crew do not feel they have to stay on the ship in order to secure their wages.

“History shows that the only way for [abandoned] seafarers to recover unpaid wages in the absence of any form of financial security is to remain on board, in port or at sea, until the ship is sold,” says Mr Brown. “This serves only to make matters worse for the shipowner as well as for seafarers and their families, who suffer further financial loss and hardship as a result of the long delays that can accompany the judicial sale of a vessel.”

The responsibility is on the ratifying country to deal with abandoned seafarers/ships, but better facilities and free access to them would be a great benefit to abandoned seafarers, says Ron Strathdee of the Isle of Man Ship Registry. “So often you read that when a ship is abandoned and seafarers stranded, the port does not assist the process; the ship is moved out of the way and the seafarers’ movements severely restricted.”

If a vessel and its crew are abandoned in port, that affects port operations, points out Dr Doumbia-Henry. “MLC will be about working and living conditions and we should end up with less seafarers being abandoned as a result.”

Regulations addressing the issue of abandonment are expected to be among the first amendments to MLC, probably early next year.