Maritime Employers: How to Attract and Retain Quality Crew

For years, the shipping industry was warned that a shortage of qualified officers was on the way. That shortage has now arrived. According to the BIMCO and ICS Seafarer Workforce Report 2026, the global shipping industry will need an additional 113,735 officers by 2030 to operate the world merchant fleet, and is already facing a shortage of 39,100 STCW-certified officers in 2026. To bridge the gap, the industry will need to recruit an additional 22,747 officers and 8,475 ratings every year through 2030.

The cruise sector faces similar pressure. Global cruise passenger volume reached a record 37.2 million in 2025, and CLIA now projects 42 million passengers by 2028. In 2026, there will be 325 CLIA-member ocean-going ships, representing around 690,000 lower berths globally, and every one of those ships needs a skilled crew delivering high standards of service.

The yachting sector is smaller but equally competitive. Some 612 yachts are under construction across 142 shipyards in 29 countries, and the average length of yachts under construction has reached a historic high of 48.5 metres. Larger, more complex yachts require larger and more specialised crews, and owners expect excellence.

In every part of the industry, experienced officers, engineers and specialist crew can choose where they work. A new generation of seafarers is more mobile and more demanding, and is willing to move employer to find the right package. Salary alone is no longer enough to secure loyalty.

The retirement gap at sea

Many seafarers spend their working lives outside their home country’s pension system. They are often exempt from national onshore labour laws. The Maritime Labour Convention (MLC), which came into force in 2013, sets minimum standards for fair employment, decent working conditions and social protection, but it does not guarantee a retirement income. As a result, many long-serving crew members reach the end of their careers with little private provision.

Seafaring does offer a real opportunity to save. Living costs on board are low, and in the cruise and yachting sectors crew can also receive good bonuses and tips. With the right structure in place, time at sea can become time spent building long-term financial security.

Why maritime benefits are difficult to deliver

Employers in the merchant and cruise sectors manage workforces with diverse skills, responsibilities, salaries and nationalities, including many relatively low-paid roles. Crew are spread across fleets and vessels worldwide and typically work in rotations. Crewing companies and employers of record may also place seafarers with many different clients. Finding a provider willing and able to administer benefits across such a population, efficiently, has traditionally been a challenge.

How an international retirement and savings plan works

The Sovereign International Retirement and Savings Scheme is designed for internationally mobile workforces, including those working offshore or in countries without a recognised pensions framework. Plans are established in Guernsey, a well-regulated jurisdiction on the OECD white list. Benefits are paid gross of tax, there are no minimum or maximum limits on contributions, and payments can be made to non-residents without withholding tax, so members are generally taxed only in their country of residence when they receive their benefits.

This is a simple and effective way to break down barriers and gives seafarers the chance to invest in their future and save, via payroll, with global fund houses in stable hard currency. As a trust-based arrangement, the plan’s assets are legally separate from those of the employer, which gives members an added layer of security.

Maritime employers can structure a plan to include:

• A core employer contribution for all crew, which can vary by rank, contract or vessel and can be linked to time on board.
• Matched employee/employer contributions up to a set percentage.
• An enhanced contribution for officers, engineers and specialist ranks, helping to reward and retain the most sought-after talent.
• A vesting schedule, so crew earn the right to employer contributions after a specified length of service.
• A completion bonus, encouraging crew to complete their contracts.
• A voluntary savings element, allowing crew to save directly from payroll, with no minimum contribution, for life events such as a house or land purchase, a wedding, children’s education or retirement.

How this could work in practice

Consider a crew management company that places officers and ratings on merchant vessels for a range of clients, with crew working rotations of several months at sea.

Using the Sovereign International Retirement and Savings Scheme they can create a branded and tailored plan that will add value to their ship owner clients to deliver on their duty of care.

The benefit could include a set percentage, such as 2% of earnings paid into each seafarer’s member account whilst actively at sea, rising to 6% for officers and specialist ranks. Or they may decide to incentavise crew to save by putting in a match contribution. If a seafarer pays between 2-5% into the plan, then the shipowner will match it.

Employer contributions would vest once the seafarer completes 5 years’ service, giving the crew a clear reason to be loyal.

Seafarers can also save voluntarily from payroll to save for medium-term life time events. They can keep track of their account value online.

When a seafarer moves to a different vessel, they stay in the same plan, so their benefits remain consolidated and consistent. The crew management company adds value to their ship owner clients and their crew. They build a more stable, experienced workforce, which will enhance their reputation and the crew feel valued because the company is investing in their future.

Simple to implement and administer

Digital tools, including Application Programming Interfaces (APIs), make it quick and easy for employers to transfer data, and members have real-time online access to their accounts. Sovereign can work with a single central payroll or accept contributions from multiple pay-points into one plan. In most cases, the employer only needs to manage joiners, leavers and monthly contributions. Fees are fully transparent and can be paid by the employer, the employee or shared.

An international retirement and savings plan is a highly effective way for maritime employers to meet the recruitment challenges and stand out, retain experienced crew and deliver on their duty of care.

For further information or to get the process started, contact Jo Smeed below.