The Philippines has long considered itself a maritime powerhouse, with its seafarers accounting for over a quarter of the global maritime workforce. However, the specific economic impact of the seafaring industry on the country has largely remained at the level of prediction. A recent study clearly outlines the full picture of the industry and calls for relevant authorities to take action to ensure that the global merchant shipping industry’s trust in Filipino seafarers is not shaken.
The study points out that one of the core engines of the Philippine economy is not located on land but is rooted at sea. In 2024, the total economic value created by the country’s shipping industry reached as high as $17 billion. The industry directly provided nearly 400,000 jobs, contributed about 4% of the national Gross Domestic Product (GDP), while shipowners’ expenditures within the Philippines amounted to $923.3 million. More crucially, seafarers brought $2.5 billion in income to their families.
The study, titled “Profile, Structure, and Economic Impact of the Overseas Seafaring Industry on the Philippines,” argues that by supplying labor to the global shipping industry, Filipino seafarers are also a significant growth point for the country’s foreign exchange reserves. In 2024, seafarer remittances reached $5.6 billion. After these funds flow into local communities, they create a chain effect of stimulating consumption, promoting business development, and increasing tax revenue.
It is reported that the study was jointly conducted by the Center for Research and Communication (CRC), an economic think tank at the University of Asia and the Pacific, and the ALMA Maritime Group. It also reveals the diversified impact of the industry on the economy. Specifically, the industry supports a wide range of onshore jobs, covering multiple related fields such as crew recruitment, logistics, training, insurance, and maritime services.
CRC President Winston Padojinog stated, “For every peso of seafarer remittance, it can almost generate a three-peso chain reaction in the economy.” He added that given that the Philippines is a major global supplier of maritime labor, it is essential to ensure the sustainable development of the industry, particularly to maintain global shipowners’ confidence in Filipino seafarers.
Notably, the European Commission had previously threatened to ban Filipino seafarers from working on EU-flagged ships due to non-compliant training and failure to meet international maritime safety standards.
In recent months, the United States has also cracked down on Filipino seafarers, following the restrictive immigration and visa policies implemented by the Trump administration. It was reported that U.S. Customs and Border Protection arrested and repatriated at least 130 Filipino seafarers, sparking protests from the Philippine Embassy in Washington.
The CRC study emphasizes that the enormous economic impact of the shipping industry is highly dependent on global trust in the Filipino workforce. If shipowners lose confidence due to policy instability, skills gaps, or global competition, the consequences would undoubtedly be swift and severe.
Padojinog concluded, “Good policy is not about protecting companies, but about protecting Philippine jobs and families.”
