Despite exceeding regulatory standards, many shipowners feel their efforts to improve safety, sustainability, and crew welfare go unnoticed. This article explores the recognition gap and why commercial value rarely follows ESG investment.
Shipowners perceive that even when they go above baseline in safety, sustainability, and crew welfare, these efforts are not recognised or compensated. Stronger safety records, greener vessels, and higher welfare standards are often overlooked when cost takes precedence.
When asked whether charterers value owners who go beyond compliance in safety, sustainability, and crew welfare, the overwhelming response was “not really.” Some acknowledged recognition “only occasionally” or “only with certain charterers.” None said “consistently yes.”
Owners reported that commercial pressures mean that charterers routinely deprioritise higher-ESG vessels in favour of cheaper or more available ones. 87% say this has happened, with 33% citing it as frequent.
73% say they exceed compliance in safety, 60% in sustainability, and 67% in crew welfare. Yet only 13% believe that investments in safety and crew welfare have consistently resulted in improved commercial terms with charterers, and just 7% say the same of advanced sustainability measures.
Steven Jones, Founder of the Seafarers’ Happiness Index, explained:
“Charterers’ decisions are ruthlessly cost-driven. A dollar a box difference can decide who gets the business. Shipowners may feel they’re investing in ESG, but unless that translates into direct value for the charterer, they won’t be rewarded.”
The perception that above-baseline efforts are invisible has far-reaching consequences. If shipowners see little return from going above compliance, many will simply meet minimum standards. This risks creating a “race to the bottom,” suppressing incentives to innovate or invest in higher standards.
To explore how the maritime industry can anchor safety, sustainability, and crew welfare at the heart of vessel selection, read the full thought leadership report, From Pledges to Practice: Anchoring Safety, Sustainability, and Crew Welfare in Vessel Selection, commissioned by RightShip.
