Mobility Impact Report: Shipping Edition, Q1 2025

Human Rights Challenges and Trade Route Disruptions Transform Maritime Sector Practices

This comprehensive analysis examines how human rights issues at sea remain a critical challenge, with 18% of deaths at sea attributed to suicide and persistent issues like unpaid wages and excessive work hours creating significant risks throughout maritime operations. This research reveals that these human rights concerns represent both financial materiality considerations, through operational continuity, crew retention, and potential liability, and impact materiality dimensions, through worker welfare, community relations, and industry reputation, requiring robust double materiality assessment frameworks.

The report additionally highlights how recent trade route disruptions have complicated sustainability initiatives for 54% of shipping companies particularly affecting alternative fuel adoption and vessel efficiency upgrades.

Call to Action: Shipping companies should develop regionalised operation networks and implement flexible fuel strategies that can adapt to trade policy fluctuations ensuring both human rights and environmental commitments remain prioritised despite economic uncertainties.

The report highlights innovative solutions emerging across the sector, including digital work logs and wearable technologies that monitor health risks while enhancing compliance with the Maritime Labour Convention (MLC). These technological interventions enable more sophisticated approaches to human rights due diligence, allowing shipping companies to identify, prevent, and address adverse impacts more effectively throughout their complex global operations while satisfying evolving CSRD reporting requirements on social sustainability dimensions.

This analysis examines the significant decarbonisation challenges facing the industry, with EU emissions trading reforms potentially exposing maritime operators to substantial carbon costs. At the same time, CDP data indicate that 38% of firms lack viable plans for transitioning to biofuels. These gaps in strategic preparedness represent material risks as regulatory frameworks tighten, including the IMO 2030 sulphur cap requirements that are already driving increased operational costs throughout the shipping value chain.

The report examines the emerging role of green hydrogen in maritime transport, as underscored by the COP 29 Hydrogen Declaration. While offering significant potential for emissions reduction, the implementation of hydrogen faces extensive challenges due to high production costs and logistical complexities. Companies that implement strategic partnerships with technology providers and port operators are demonstrating a heightened awareness of both transition risks and opportunities throughout the maritime fuel ecosystem.

Looking toward future governance landscapes, the report identifies how shipping companies implement comprehensive Maritime Labour Convention compliance programmes as part of broader ESG frameworks. These initiatives not only address immediate human rights concerns but also enhance strategic positioning as investors, customers and regulators increasingly scrutinise social performance metrics throughout maritime operations and supply chains. The financial implications extend beyond compliance considerations to encompass reputation management, investor relations and commercial partnerships in increasingly conscious markets.