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The Problem

Maritime transport is essential to the world’s economy. Over 90 percent of the global trade is carried across ocean. It is, by far, the most cost-effective way to move en masse goods and raw materials around the world.

However, the maritime industry is also prone to rampant corruption.

Corrupt practices include

simple one-time demands

Cash or gifts in order to expedite port clearance formalities or to overlook procedural errors

long-term sophisticated schemes

Bribery and kickbacks through intermediaries, suppliers and service providers tied to corrupt officials

payment under-the-table

“Reduced fine” on the spot for an obvious violation without proper documentation

extortionate demands

threatening the safety of the crew, vessel or cargo

Moreover, with globalization and increased connectivity, transnational criminal syndicates are expanding their illicit trafficking alongside growing legitimate trade flows.

The costs to the industry are huge.

For example, criminals are embedding illegal drugs into the legal movements of people and goods across borders. More drugs are now being transported using the same infrastructure and routes as legitimate trade.

At a macro level, corruption in the maritime sector constitutes a non-tariff trade barrier that is driving up trade costs and impeding economic and social development.

Cost of Corruption

at company level

In Indonesia, the cost of bribes is higher than the salary of a truck driver.

Transport costs are spent on bribes
0 %
Customs revenue lost annually to corruption
$ 0 M
Increased cost of doing business
0 %

Corruption is damaging the reputation of the industry and driving away much needed investment.

At a micro level, for shipping companies, corrupt demands lead to delays, inefficiency, an unsafe working environment and other commercial consequences.

Corruption hinders trade, increases costs and, above all, has a profound and negative impact on ships’ captains and crew who come under pressure when rejecting demands.

Maritime corruption drives up trade costs, impedes economic efficiency and causes crimes, poverty and pollution.
Stay informed and help us fight for justice and equality.

With a focus on the Maritime Industry throughout Asia, Maritime Fairtrade believes Education and Awareness Empower Individuals to trigger change and positively influence industries.

The concepts of Ethical Business Practice and transparency must motivate all industry leaders to elevate their own business and operation.

The cost of corruption is huge and we believe that Legal Trade is Profitable Trade.

We invite our readers to support the cause and be part of the fight against corruption.

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