Cash payment of wages incurs unnecessarily high costs

Shipping companies are paying out unnecessary high costs by continuing to pay seafarers with cash, claimed financial services provider ShipMoney at the ACI HR and Crew Management Summit in London. EVP Greg O’Connell said that an average fleet of 50 ships would see shipping operators spending nearly $500,000 in delivering cash to vessels, as the cost of delivering cash to vessels ranged from 3% to 10% of the value being transported.

ShipMoney is not a disinterested observer. It offers shipping operators an alternative method for paying their crews, through a pre-paid Visa card. O’Connell said that “a lot of companies we are talking to don’t even realise the amounts they are paying just to pay seafarers in cash. In today’s world, where many ship operations are moving towards digitalization, it really doesn’t need to be that way, as nearly everything a seafarer does when they get off a ship can be paid for with a card.”