Seafarer fatigue, mental health and reluctance to report mistakes should become key considerations for marine insurers, banks and investors, according to new research warning that shipping is overlooking significant commercial risks hidden in its own data.
The Sustainable Shipping Initiative’s (SSI) From Welfare to Risk report, published yesterday, examines 68 sources spanning accident investigations, insurance claims, academic studies and seafarer surveys. It finds consistent links between crew wellbeing and safety outcomes, particularly involving fatigue, mental health and psychological safety.
Fatigue emerges as the most extensively documented risk factor. The report warns that understaffing and excessive workloads encourage the falsification of rest-hour records, concealing dangerous working conditions from compliance systems.
Between a quarter and a third of seafarers do not feel safe raising concerns or reporting mistakes, potentially undermining the accuracy of incident and near-miss reporting.
The findings reinforce earlier research covered by Splash. A World Maritime University study published in 2024 found 64.3% of surveyed seafarers adjusted their work/rest records. Another welfare review, reported by Splash last month, found just 49% of seafarers believed their most recent vessel carried sufficient crew to work safely without excessive fatigue.
Insurance claims provide further evidence of the financial implications. Gard’s latest crew claims report identifies stress, fatigue and excessive workloads as important factors in onboard injuries, while illness accounts for almost 60% of crew claims.
SSI argues insurers can already incorporate welfare indicators into loss-prevention programmes and underwriting discussions, while lenders could include them in borrower monitoring. However, the organisation cautions that current evidence remains insufficient to use welfare indicators as standalone predictors of future claims, insurance premiums or investment performance.
The next challenge is connecting existing welfare surveys, accident investigations, port state control findings and insurance claims at vessel and operator level, allowing the industry to quantify how poor crew conditions translate into financial losses.
Pictured, a general cargo ship that ran aground five years ago on the rocky coast of the Yailata protected area in Bulgaria. The incident occurred when the ship deviated from its planned course because the second officer on watch fell asleep.