Some 300,000 people who work on commercial vessels — the kinds that carry food and health and hygiene products, among other things — are stuck on their ships, unable to get off due to COVID-19 measures. Governments around the world have closed ports, borders and other travel facilities that allow crew changes.
Not being able to change crews on these ships is a problem for the health and safety of workers, as well as a pretty good way to clog up supply chains.
Now, the CEOs of some of the largest consumer products companies — Unilever, Procter & Gamble, Johnson & Johnson — are weighing in on what they say is a question of human rights on the high seas.
Typically, commercial ship workers sign contracts of six, 10 or 12 months. And when that’s up, the ships swap crews at the next port.
“But whenever they came near the ports, the port is not allowing any kind of transfer,” said Branko Berlan with the International Transport Workers’ Federation.
He said some workers have been stuck onboard for 17 months, and some ports are accepting products but not people. In one case, several ports refused to take the body of a ship worker who died.
“And then we actually find a way that the body was taken in Singapore after 15 days onboard the ship,” Berlan said.
The issue of overworked crews is clogging up the supply chain.
Tom Derry, CEO of the Institute for Supply Management, said officials in places like Australia are starting to ban improperly staffed ships from sailing.
“Because we’re seeing these ships taken out of circulation as it were, we’ve seen rates for freight crossing the Pacific more than quadruple since June,” he said.
Derry said delays are causing fridge and dishwasher shortages in the U.S. And keeping goods moving is critical to the multinational firms now pressuring the United Nations to get involved, including the Consumer Goods Forum.
“We can’t face the risk of global supply chains being disrupted. And all of this at the expense of workers’ well-being,” said Didier Bergeret, the forum’s director.
Meantime, the workers remain mostly invisible, said Andrew Kinsey, marine risk consultant at the insurer Allianz.
“When you go into a store and you look at items on the shelves, the way they got to that shelf was via ship,” he said. “As a consumer, we’re blind to it.”
About 80% of goods in the world are delivered by sea.
COVID-19 Economy FAQs
How are Americans feeling about their finances?
Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.
Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.
Are people still waiting for unemployment payments?
Yes. There is no way to know exactly how many people have been waiting for months and are still not getting unemployment, because states do not have a good system in place for tracking that kind of data, according to Andrew Stettner of The Century Foundation. But by his own calculations, only about 60% of people who have applied for benefits are currently receiving them. That means there are millions still waiting. Read more here on what they are doing about it.
What’s going to happen to retailers, especially with the holiday shopping season approaching?
A report out Tuesday from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.
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