Koster Shipowners and Operators Association (KOSDER) Publishes Assessment Report on Black Sea Trade and Attacks on Vessels

The meeting, moderated by KOSDER Board Member Murat Hılkın, was held online and attended by former Undersecretary for Maritime Affairs Suat Hayri Aka. Speakers included Ufuk Teker, General Manager of Türk P&I, on insurance matters; Selçuk Sencer Esenyel, Founding Partner of Esenyel Partners; and Hakan Tüfekçi, Managing Partner of Tüfekçi Law Firm, on legal matters.

Developments in the Russia-Ukraine War and the recent increase in attacks on merchant vessels in the Black Sea basin have made an urgent assessment and a collectively developed action plan imperative. It must be emphasized from the outset that these attacks are directed not only at vessels, cargo, or trade, but at human life itself. Coasters, the lifeblood of regional trade, and particularly the Turkish coaster fleet, which plays an important role in that trade, have come under serious attack.

Neutral civilian merchant vessels, which enjoy protection under international law, are being struck by drones, missiles, and various munitions; even seafarers’ living quarters are being targeted. These acts, which directly endanger human life and have caused seafarers to be killed and injured, mean that the matter can no longer be regarded solely as a commercial problem for shipowners.

The prevailing view at the meeting was that the safety of life must come before everything else, but that a complete cessation of trade would also have serious economic and strategic consequences for Türkiye.

The expert guests and experienced industry representatives therefore concluded that the issue should not be reduced to the question, ‘Should vessels enter the region or not?’ Instead, every aspect—from the safety of life and insurance to law, diplomacy, freight rates, and government support—must be considered together. The online consultation meeting, held with contributions from KOSDER members, was convened to develop an emergency action plan in response to the problems caused by recent developments in the Black Sea.

It was decided that the assessments, recommendations, and calls arising from the meeting would be shared with the public and relevant parties.

Law and Insurance for the Safety of Life

The fact that merchant vessels in the Black Sea have become direct targets of hostilities was central to the meeting. Vessels being struck and seafarers losing their lives have reached a point at which the industry can no longer regard these events as normal commercial risks.

Although a complete cessation of trade was discussed, the participants agreed that this would not be realistic. They adopted a common position that commercial activity must not be placed before human life. Priority should therefore be given to creating safer, more controlled maritime traffic in high-risk areas.

Strong Evidence and a Robust Legal Case File

Owing to concerns for the safety of life, the legal and insurance aspects of the attacks have also acquired particular importance. There are substantial uncertainties and difficulties in identifying the party responsible for an attack and determining which legal mechanism should be used. Because issues such as State immunity and jurisdiction mean that a direct claim for compensation may not always be viable, it was emphasized that each incident must be developed into a comprehensive legal case file, supported by strong evidence and a full assessment of the damage. It was also decided that KOSDER would identify member vessels and operators affected by such attacks and incidents, compile a list, and ensure that data relating to the incidents would be recorded systematically in the report to be prepared.

Insurance Cover Requires Close Attention

War-risk insurance must likewise be managed carefully before each voyage. The scope of P&I, hull and machinery, and war-risk cover should be reviewed; the required notices for voyages to high-risk areas should be submitted on time, and the conditions under which cover remains valid should be established clearly.

The essential elements of the emergency action plan that should be established without delay are as follows:

• Adopting measures centred on seafarers’ safety
• Reviewing war-risk insurance and other cover before each voyage
• Creating legal and insurance files by recording attacks, damage, and loss of life in a standard format
• Increasing international efforts to establish safe and controlled maritime traffic for merchant vessels and, where necessary, developing safe-route alternatives similar to a grain corridor

The Role and Working Conditions of Seafarers

Human Life Comes First

The meeting particularly emphasized that, where war risks are involved, human life is the first and indispensable priority. The prevention of loss of life and the safety of seafarers come before the vessel, cargo, freight, and every commercial consideration.

Sending seafarers into high-risk areas raises new issues concerning the master’s decisions, crew members’ reservations about the voyage, and the responsibilities of the shipowner and the designated person ashore (DPA). Seafarers must therefore be involved in safety-related decisions, and the potential legal consequences should be identified in advance.

The fundamental approach should not be to seek a balance between continuity of trade and human life, but to create safe working and voyage arrangements that place human life first in all circumstances.

The following measures were considered necessary:

• Clarifying the master’s and seafarers’ authority and responsibilities concerning safety
• Protecting crew members’ rights when they withdraw from, or decline to join, a voyage
• Developing common practices and procedures among shipowners, seafarers, and the relevant public authorities

These measures were considered necessary.

Government, Diplomacy, and Industry-Wide Cooperation

One of the meeting’s principal conclusions was that the problems have grown beyond the capacity of individual shipowners to resolve.

It was stated that, given Türkiye’s position on the Black Sea, the importance of regional trade, and its rights under the Montreux Convention Regarding the Regime of the Straits, the government should take a more active role in the process.

The Ministry of Transport and Infrastructure, the Ministry of Foreign Affairs, and the Ministry of Trade should act in coordination to ensure that the issue remains continuously and prominently on the agenda of international bodies, particularly the IMO.

Industry solidarity and collective representation are also fundamental to this process. Under the leadership of the İMEAK Turkish Chamber of Shipping, KOSDER, the Turkish Shipowners’ Association (TAB), all other maritime-sector civil society organizations, and relevant stakeholders must be involved in the process. The objective is not for institutions to act alone, but to make the industry’s voice heard more clearly, present the losses suffered and the industry’s demands within a common framework, and jointly develop the most appropriate solution strategy.

Recommendations Arising from the Meeting

Vessels, the lifeblood of an industry that brings together people of different languages, religions, races, and nationalities, and the seafarers who give those vessels life should, in keeping with the nature of their work, be recognized by all countries in the region as part of neutral and peaceful operations, and their safety throughout their routes should be guaranteed in every respect by internationally binding provisions.

Efforts should be made before the relevant authorities to extend these privileges from Turkish-flagged vessels to Turkish-owned vessels and operators. Otherwise, measures should be taken to address the risk of substantial loss of tonnage in the near future; this valuable domestic potential must not be allowed to go to waste.

• Increasing diplomatic efforts to secure safe and controlled maritime traffic
• Pursuing a strong, coordinated initiative at the IMO and other international bodies
• Compiling attacks, damage, loss of life, and economic losses in a systematic archive
• Establishing a permanent coordination mechanism between public authorities and industry organizations

What is needed is not for institutions to act separately, but for all industry stakeholders and the relevant public authorities to operate within the same framework, towards the same objective, and under a common strategy.

Freight Rates, the Coaster Fleet, and Economic Sustainability

The reluctance to send vessels into the region because of security risks, while grain, energy products, raw materials, fertilizer, animal feed, and other essential commercial cargoes still need to be transported, creates a serious tension that makes it difficult to maintain stability in the freight market.

The Turkish Coaster Fleet Is Under Strain

The meeting emphasized that freight rates had fallen to levels that could not even cover vessels’ operating costs, a situation that is unsustainable for the industry. As shipowners face escalating security risks and economic losses at the same time, these developments are making it harder for the Turkish coaster fleet—built through prolonged effort and sacrifice—to remain viable over the long term.

The risk is not confined to losses suffered by shipping companies. If the Turkish coaster fleet remains inactive for an extended period, Türkiye’s imports and exports, agriculture and livestock sectors, supplies of animal feed and fertilizer, and the logistics chain as a whole could be directly affected.

Mechanisms to keep the industry economically viable must therefore be considered now. If the crisis persists, some vessels may need to be laid up temporarily, making it important to identify safe lay-up locations and associated financial-support models in advance.

The following measures were considered necessary:

• Creating mechanisms to keep freight rates at sustainable levels
• Assessing economic measures to protect the Turkish coaster fleet
• If the crisis persists, preparing lay-up and financial-support models that can be implemented

These measures were considered necessary.

The central issue should go beyond maintaining today’s vessel operations: it should be to ensure that the Turkish maritime fleet remains viable after the crisis.

Overall Assessment

Taken as a whole, the views expressed at the meeting make clear that the war risk in the Black Sea can no longer be regarded solely as ‘a problem faced by shipowners’.

The issues at stake include human life, maritime security, law, insurance, trade, freight rates, logistics, the environment, and Türkiye’s economic security.

It will therefore not be enough to expect a single institution to provide the solution. All industry stakeholders must be involved; the relevant government bodies, professional organizations, and civil society organizations should jointly determine a common strategy and action plan to develop the most appropriate solution. Türkiye should also assume a stronger, more effective role on international platforms.

As immediate priorities:

• Accordingly, the government should pursue the necessary initiatives through international organizations, particularly the United Nations, and take the lead in establishing safe and controlled maritime corridors covering different cargo groups.
• More visible and effective responses should be made to attacks on Turkish-flagged or Turkish-operated merchant vessels that cause loss of life or property; it should be made clear internationally that the industry and Turkish shipowners have the support of the state.
• All incidents, damage, and economic losses should be recorded in a shared system. A permanent coordination structure should be established between the industry and public authorities. Preparations to protect the Turkish coaster fleet economically and to establish support mechanisms to be used if the crisis persists should also begin immediately.
• The safety of life must be protected, and international efforts to secure safe maritime traffic must be increased. The sustainability of global trade and logistics chains is a worldwide necessity, not only for food security but also for the uninterrupted transport of energy, raw materials, agricultural inputs, and other strategic cargoes. Delivering essential cargoes safely to all markets, particularly countries in need, is a humanitarian, economic, and strategic responsibility.

Conclusion

The principal issue facing the industry is not whether to continue trade at any cost or to stop it entirely.

The objective is to create a sustainable trading environment that protects human life; ensures the safe transport of food, energy, raw materials, agricultural inputs, and other strategic cargoes; sustains the Turkish maritime industry; and preserves Türkiye’s logistics capacity.

Because more than 90 per cent of global trade is carried by sea, pressure on maritime trade routes has far-reaching effects that extend beyond general economic concerns. More importantly, the lives of the women and men who work at sea are under threat. Maritime trade could not exist without them, and it is abundantly clear that no economic gain is as valuable as human life.

The solution lies not in acting alone, but in bringing all industry stakeholders into the process, acting collectively, documenting events accurately and systematically, and bringing the industry and the government to the same table to develop a joint emergency action plan. KOSDER calls for this common strategy to be established without delay in response to the problems arising from recent developments in the Black Sea.