The economic significance of Filipino seafarers

(Part 1)

The ongoing conflict in the Middle East is focusing some attention on Filipino seafarers and their major contribution to the Philippine economy. Because they are present in almost every foreign vessel, the ongoing US-Iran conflict — especially the fighting and tensions around the Strait of Hormuz — has had serious and immediate consequences for Filipino seafarers, who make up a large share of the global maritime workforce. The impact can be grouped into several key areas:

1. Thousands of Filipino seafarers are stranded. An estimated 6,000 Filipino seafarers have been stranded near the Strait of Hormuz as a result of the blockades, first by the Iranians and later by the US. It is estimated that around 20,000 seafarers of different nationalities have been stranded on ships unable to move. Shipping traffic has been seriously restricted, with only a handful of vessels able to pass even after a ceasefire. For the Filipinos, the consequences are delayed contracts and pay; inability to return home (missed crew changes); and uncertain deployment schedules.

2. Heightened danger and casualties. The Persian Gulf and nearby waters have effectively become “warlike operations areas.” Ships have been hit by missiles and drones with at least 25 vessels attacked and some seafarers killed or missing. Filipino seafarers face direct physical danger while at sea, risk of being caught in a military escalation, and the possible refusal to sail through high-risk zones.

3. Severe psychological and mental stress. Many crews have been stuck for weeks in high-risk waters, leading to anxiety and fear of attack. There are reports of mental breakdowns among crew members. Already, around 20% of seafarers have requested repatriation because of stress and fear of danger. This mental state is especially significant to Filipinos who often stay longer abroad because of financial need, having to support extended families back home.

4. Disruption of employment and income. Some Filipino seafarers are refusing assignments in dangerous areas like the Strait of Hormuz. Shipping companies are rerouting vessels, suspending operations, and seeking replacement crews. As a result, Filipino workers are suffering loss of income opportunities, facing contract uncertainty, and experiencing delays in deployment for the new hires.

5. Negative impact of government advisories and restrictions. The Philippine government understandably has restricted the movements of Filipino seafarers through agencies like the Department of Migrant Workers (DMW) and the Maritime Industry Authority or MARINA. Ships have been advised to avoid the Strait of Hormuz, unless strictly necessary. Crew changes have been suspended in conflict zones, and security protocols have been heightened in vessels. All these measures have protected the seafarers but have limited job mobility and slowed down maritime employment cycles.

The families of seafarers, together with all low-middle income households, are suffering from higher fuel and food prices, leading to some of them falling once again below the poverty line. The US-Iran conflict has created a perfect storm for these major sources of remittances. They are most exposed to physical risk (attacks on ships), operational disruption (blocked shipping routes), human strain (mental health challenges and prolonged deployment), and economic uncertainty. In short, Filipino seafarers — often called the “backbone of global shipping” — have become some of the most vulnerable frontline civilians in the ongoing geopolitical crisis.

This crisis affecting Filipino seafarers has focused some attention to the vital role played by Filipino seafarers in the overall OFW sector which since 2010 has consistently recorded a compounded growth rate of 9.9% per annum. Here, I want to report the findings of a study conducted by the Center for Research and Communication, headed by Dr. Winston Padojinog, in collaboration with the ALMA Maritime Group. Whichever way the US-Iran conflict will be resolved, it is a certainty that Filipino seafarers will continue to be a vital part of the global seafaring industry. This fact is a result of the demographic dividend that the Philippines will be enjoying for some time to come, despite falling fertility rates.

OFW remittances have long been identified as a crucial hinge on which the Philippine economic machine turns. In 2024, remittances amounted to $34.49 billion (P1.9 trillion). constituting some 7.4% of Philippine GDP. From 2000 to 2024, the annual average growth of Filipino seafarers’ remittances has been a high of 8.6% surpassing the average GDP growth of 6-7%. The only sector that performs better in earning US dollars for the country is the IT-BPO industry which has grown at 11.30% annually from 2013 to 2024.

In absolute headcount terms, Philippine seafarer deployment is growing. The latest estimates from the DMW show that the total OFW deployment grew at 4.81% from 1984 to 2024, with a recorded deployment of 2,474,197 in 2024 alone. Of these, 504,057 or approximately 20% are sea-based, with a 5.91% annual growth since 1984 deployment figures. The total deployment of Filipino seafarers has grown at a remarkable pace of 27.56% between 2024 and 2025. One explanation given is that the number one competitor, China, has such a large need to man its own ships that it has no extra seafarers to supply the vessels of other nations. In contrast, the Philippines continues to have a relatively high rate of unemployment and an even worse underemployment rate. Seafaring comes naturally to Filipino islanders.

The DMW’s latest data show four kinds of “seafarers” that the Philippines supplies to the world. A vast majority (43%) of the 2024 deployment is categorized as “non-marine,” i.e. individuals who work on ships but do not perform traditional seafaring jobs. They might be involved in specialized tasks such as medical services, entertainment, catering, or other non-maritime tasks. Hotel crew on cruise ships fall under this category. This is followed by “ratings” (35.4%) who are defined as non-officers performing various operational and support services on board a ship. These seafarers typically assist those in officer rankings in various areas, including the deck, engine, or catering. Then finally, there are those who belong to the highly skilled “officers” category — seafarers bearing authority on a ship. These include the captain, chief engineer, and other senior officers who are responsible for the overall operation and management of the vessel.

As it stands, the Philippines continues to hold the single largest share of the global seafaring workforce among individual countries, with Drewry Maritime consultants estimating 2025 figures to be around 14% of total global supply. This means there are 226,000 Filipino seafarers out of 1.6 million all over the world. Part of the Philippines’ competitive advantage stems from the value for money resulting from hiring ratings and junior officers. Data from 2016 to 2021 show that there has been an uptick in Filipino seafarers at the high-value senior officer ranks — an important advantage given the global shortage in officers identified as early as 2016. The estimated shortage (as per Drewry) is 57,536 officers in 2025, almost twice the estimated 20,500 officers in 2021.

The market also ensures convenience in hiring, as the manning services industry exists in the Philippines to provide comprehensive and end-to-end support in developing and deploying seafarers for their respective clients.

To be continued.

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia