The Maritime Anti-Corruption Network (MACN) has released its Annual Report for 2024, highlighting persistent corruption risks within the global maritime industry, with a particular focus on high-impact regions. The report highlights MACN’s ongoing efforts to promote transparency and integrity in maritime trade amid complex geopolitical landscapes and economic pressures.
The Economic Cost of Maritime Corruption
In 2024, MACN released its first Cost of Maritime Corruption Study, which thoroughly examines the far-reaching impact of corruption on both the private sector and society. Using Nigeria as a detailed case study, the study employed two hypothetical scenarios to illustrate the stark difference:
- Business-as-usual scenario: This scenario assumes that bribes are paid without resistance in the port and maritime sector. Under these conditions, maritime corruption inflates transport and logistics costs by 15%. This translates to an annual corruption cost of over USD 162 million for the industry, leading to substantial reductions in GDP and job opportunities.
- Zero-tolerance scenario: This scenario postulates a complete absence of bribes in the port and maritime sector. The study suggests that eliminating corruption could slash costs for the private sector by 62% (over USD 100 million annually). Furthermore, it projects an annual increase in GDP by USD 130 million and the creation of more than 147,000 full-time jobs.
This powerful comparison clearly demonstrates the significant societal and economic gains achievable by effectively tackling corruption in maritime trade, underscoring MACN’s impact on fostering sustainable development, enhancing trade, and improving livelihoods.
Driving Fair and Balanced Anti-Corruption Standards
A key achievement for MACN in 2024 was facilitating a supply chain dialogue on the equitable allocation of risks when rejecting corrupt demands, particularly within port operations. MACN convened diverse stakeholders, including cargo owners, shipowners, and managers, to openly address the operational and commercial consequences of taking a stand against corruption.
This dialogue led to the formation of a dedicated working group. This group meticulously reviewed and proposed amendments to widely used anti-bribery clauses in shipping contracts. These amendments included clearer definitions of corrupt demands, revised termination rights, and the development of practical guidance notes. The initiative garnered strong industry engagement, with many companies committing to implement the revised clauses, marking a significant stride towards more equitable, transparent, and enforceable anti-corruption standards in global shipping.
Strengthening Integrity
In 2024, a major focus for MACN was strengthening its collaboration with the International Maritime Organization (IMO) and Port State Control Memorandum of Understanding (PSC MoU) regimes to mitigate corruption risks during vessel PSC inspections.
MACN formalized agreements with several regional PSC MoUs and actively participated in high-level events. These included the 24th Black Sea MoU Committee Meeting, the 5th Ministerial Conference of the Abuja MoU on Port State Control for the West and Central Africa Region (held in Brazzaville, Republic of Congo), and meetings with the Mediterranean MoU and Viña del Mar Agreement, all aimed at exploring new collaborative opportunities to enhance integrity and transparency in port inspections worldwide.
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Source: Safety4sea
