Banks Curb Lending to Shipowners at Risk of Endangering Seafarers' Welfare

Banks Limit Financing for Negligent Shipowners

In a significant shift, leading banks are moving to restrict financing for shipowners who compromise crew welfare. This decision follows recent attacks on vessels in the Red Sea and ongoing scandals that have spotlighted the dire working conditions faced by seafarers. Executives from major banks, including ING and Citigroup, will meet to discuss strategies for tracking compliance with safety commitments.

Concerns Over Seafarer Safety

With over 1.9 million seafarers globally, many continue to work under precarious conditions, often in conflict zones. For instance, shipowners have been navigating through missile strike areas, raising alarming security concerns. During the COVID-19 pandemic, many seafarers were also stranded, underscoring the lack of adequate support.

Proposed Measures for Lenders

• Bank representatives are set to propose stringent criteria for financing related to crew injury reporting and mental health support.
• They aim to share information on days lost due to injury, and family support offered by shipowners.
• Better interest rates could be awarded to those meeting ethical requirements.

Impact of the Poseidon Principles

The discussions will also align with the Poseidon Principles, aiming to hold shipowners accountable for their practices as part of a broader shift toward environmentally and socially responsible lending.

Global Importance

This move is gaining traction among international banks, reflecting the increasing focus on ethical practices within the shipping industry. Experts believe that tightening lending criteria could place economic pressure on companies that fail to uphold necessary standards and protect their crew's rights.