Sailors Begin Strike Against Three Vessels Owned by Icelandic Company Eimskip

Bosuns and sailors represented by the Icelandic Seamen's Union (SI) began a strike on Monday, May 25, at noon. The strike affected three container ships owned by the Icelandic company Eimskip.

The contract with the union, which included wage increases and adjustments due to rising prices, expired at the end of last year. Eimskip stated that it is negotiating with the union, including efforts with a state mediator, and denied media reports that it is using foreign labor instead of its Icelandic crews.

Last week, the company announced a suspension agreement with the union regarding shore staff, who also threatened to strike from May 26 to May 28. The strike was called off while a competency analysis of port operations is conducted. Negotiations for a collective labor agreement have been postponed until October 31. The company is also implementing a new job classification and pay system based on competency for port workers.

The three vessels, Bruarfoss, Dettifoss, and Selfoss, owned by the company, are registered through the subsidiary Faroe Ship and operate under the flag of the Faroe Islands. Media reports indicated that the company requires sailors to sign on for work through the Faroe Islands for lower wages or that it may use foreign crews earning five times less than Icelandic sailors.

The company denied these reports, stating that crew members working on its three vessels are hired under Icelandic collective agreements with unions. The company claims that the dispute concerns the union's demands for Eimskip to operate a certain number of its own vessels. Management notes that their strategy involves a mixed fleet of owned and chartered vessels.

Under financial pressure, Eimskip undertook "extensive cost-saving measures, including reducing the company fleet, changes to the delivery system, reducing the number of staff, and investment restrictions," it reported to shareholders in the second quarter of 2025. Earlier this month, the company reported a 4.5 percent decline in volumes in the first quarter of 2026, with a 1.4 percent decrease in freight revenues and an overall revenue drop of 4.8 percent attributed to its freight business. EBITDA fell by nearly 40 percent year-on-year in the first quarter, and the company reported a net loss of 4.7 million euros ($5.5 million), an increase from a loss of 775,000 euros in the first quarter of last year.

The vessels Bruarfoss and Dettifoss (according to AIS signals) are currently inactive, while Selfoss is heading to Reykjavik. Eimskip expects the strike to affect its schedule and services. The company stated that it is working to minimize disruptions, while media reports indicate that new negotiations are not scheduled.