Seafarers earning in dollars are no longer immediately converting their greenbacks into rupees, nor are they simply shopping for the best discount in town.
With the volatility in the rupee and expectations of the greenback to strengthen further, shippers are now playing on the exchange rate.
The seafarer community is deciding in advance the rate at which they wish to dispose of their dollars, since they are not losing out much on interest rates by holding onto the hard currency, as Indian interest rates are at their all time lows.
"We have seen a new trend among seafarers as they decide to dispose their dollars only when it hits a particular level. We give him a call when it does, and he encashes the dollars which are kept with us," said Gavin Azavedo, CEO Travelex India.
Travelex, which has become an advisory bureau for the 80,000 Indian officers and crew, has orders from the community to convert their greenback when the dollar hits a particular level.
The funds are kept with the foreign exchange specialist, which has derived a new product catering specifically to the needs of Indian seafarers.
India has the third largest community of seafarers after the Phillippines' 300,000 and China's figure that comprises mostly of crew members, said Azavedo. Shippers work on contract for six to nine months with shipping lines, and earn anywhere between Rs 25,000 to Rs 200,000 a month.
Hence Travelex is looking at a ballpark figure of about $1 billion in terms of remittances back home. Experiencing delays in terms of bank accounts getting credited and facing high forex charges from banks, many seafarers have tied up with Travelex to avail of a variety of services.
"Even though seafarers' earnings are free from tax as they are out most of the year and thus fall under the category of non-resident Indians, they still need advise in terms of where to park their earnings. In addition to handling their remittances, we are also offering investment advice and insurance cover for their families under the Travelex Seafarers Club," said Azavedo.
The shipper has insurance cover only while he's on the vessel. Likewise his family has risk cover only if they are also on the ship. Otherwise, in a country of underinsured people, this community does not generally take insurance cover, he added.
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