Personnel Shortage: the Shortage of Officers in the World has Reached a Record High. Who are Ukrainian Crewing Companies Looking for?
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Personnel Shortage: the Shortage of Officers in the World has Reached a Record High. Who are Ukrainian Crewing Companies Looking for?

Date of posting: 11.07.2024
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The shortage of ship officers in the global merchant fleet has reached its highest level in the last 17 years. The global consultancy Drewry reports this. Thus, the shortage is estimated at 9%, while a year ago it was 5%. This is in line with BIMCO's forecasts and the International Chamber of Shipping's Seafarer Workforce Report, according to which the shortfall will increase to 20% by 2026.

 

Have all the chief officers really aged?
Or is aging personnel not the only reason?

 

Yes, indeed, analysts say that one of the main reasons for the personnel shortage is that experienced seafarers are retiring and there is no one to replace them. The issue became especially acute during Covid-19, when the number of training institutions began to decline, offline programs were closed, and some seafarers decided to leave the sector.

In 2022, the situation worsened. This especially applies to Ukrainian and Russian seafarers. As of 2024, the personnel crisis began to decrease, and some crewing companies claim that it has completely passed. Many Ukrainian seafarers have gone abroad and are ready to start working again.

 

“When the war broke out there was concern as to whether Ukrainian seafarers would be lost to the international maritime employment market. However, some 60-70% of Ukrainian seafarers were already onboard ships. Instead of returning home to Ukraine, the majority settled in other parts of Europe with their families who had fled the conflict, and they therefore continued to be available. Other seafarers also left Ukraine, boosting seafarer availability to pre-war levels,” Danica Crewing Specialists stated on its official website.

 

Greece and Italy have also experienced labor shortages amid growing global demand for shipping. Experts call the popularity of sea cargo transportation another reason for the need to increase the number of crews. Today, the supply is inadequate to keep pace with the demand.

 

Among the major supply countries, as before, India and the Philippines take the first place.
 
“In India and the Philippines, the government provides excellent support to seafarers, so their intake is actually good,” Rhett Harris, senior manning analyst at Drewry, was quoted as saying by MARPRO. China is also one of the major supply countries seeing good intake. Chinese seafarers tend to favor Chinese-flagged vessels however, so are less likely to contribute to the global supply.

 

For some, it isn’t the number of seafarers available globally that matters but the number of seafarers available in a particular country. For example, “the USA has the Jones Act, which says any vessel starting a voyage from a US port and finishing voyage in a US port has to have US National seafarers on board,” says Harris.

 

 

Ukrainian crewing companies are looking for engineers

 

According to various estimates, there are from 150,000 to 200,000 seafarers in Ukraine (with families this is more than 600,000 citizens). If the global trend is, first of all, the search for officers: masters, chief officers, 2nd-3rd officers, then in Ukraine companies are experiencing the greatest shortage of engineers. Thus, on the website ukrcrewing.com.ua as of this writing (July 2024), crewing companies posted 1,725 open vacancies for various positions. Among which are urgent and not urgent. The lion's share of vacancies falls on bulk carriers, container ships and general cargo. Crewing companies are also in search of workers on RO-RO, tanker fleet vessels, and less often offshore fleet.

 

     

 

For comparison, we have picked up the most frequently posted vacancies. The absolute leader in demand remains chief engineers, chief officers and 2nd engineers.

 

Master 157 open vacancies
Chief Officer
263 open vacancies
2nd Officer 102 open vacancies
3rd Officer 133 open vacancies
Chief Engineer 310 open vacancies
2nd Engineer 297 open vacancies
3rd Engineer 121 open vacancies
ETO 192 open vacancies

 

No wonder, every year the requirements for a good specialist are growing. In addition to common responsibilities, the senior officers must understand the digitalization of ship systems, know the basics of artificial intelligence, which is also being actively implemented, ensuring high-quality, efficient and safe operation of vessels. Professional responsibilities increase if an engineer is employed on large tankers carrying large quantities of oil, gas or chemical products. There is even more specialized equipment, installations and systems that also need to be regularly maintained, inspected and repaired.

 

However, the need for ratings is by one order less. If you look at the table below, you can no longer see three-digit, but two-digit numbers. As of this writing (July 2024), AB and OS are most in-demand.

 

Able Seaman 64 open vacancies
Ordinary Seaman 48 open vacancies
Electrician 39 open vacancies
Cook 29 open vacancies
Fitter
39 open vacancies

 

They are trying to solve the crisis with the help of online training for Ukrainian seafarers, providing assistance with obtaining a seaman’s identification card and certification in Poland, the Netherlands, Lithuania, Croatia, Canada and a number of other countries. For example, the ITF Seafarers' Trust and the Marine Transport Workers' Trade Union of Ukraine (MTWTU) have developed a program for cadets that allows them to complete their training and receive Lithuanian and Ukrainian certificates of competence. Ukrainian seafarers can also work on Canadian-flagged ships if they receive approval from Transport Canada, provided that they received their STCW certificates through a maritime academy located in Ukraine. The Panamanian Maritime Administration confirms that Panamanian flag accepts seafarers from Ukraine to obtain a Panamanian seaman’s identification card remotely through Seaman Solutions. These are just a few examples.

 

 

The false senior officers are eager to embark on a voyage!

 

Despite the “hunger”, companies are considering applicants who meet the requirements of ship owners, and are not ready to hire anyone for the position, just to close the “holes”. However, high wages give rise to another type of scammers. This time not in the form of false employers, but in the form of false senior officers.

Henrik Jensen, CEO and Founder of Danica Crewing Specialists shared in Safety4sea that the shortage of seafarers is leading to a rise in the number of fake CVs:

 

“This shortage of crew encourages some applicants to upgrade their CV by claiming fake sea service in a higher rank – and even print fake sea records and stamps in their seaman's book, hoping they can cheat a desperate employer into accepting them without proper checks in order to just get a vacancy covered.”

 

 

These are not just wages that will calm the labor market.

 

If the situation does not change, we will face a deterioration in safety at sea, says Rhett Haris (Drewry):
“Ships are still sailing, but if the supply doesn’t improve significantly, there could be problems,” says Rhett Harris, senior manning analyst at Drewry. Those problems could eventually result in vessels being stuck at port. The result – seafarers become overworked. Vessel maintenance may take a back seat, resulting in more significant repair jobs in dry docks. In a worst-case scenario, accidents will become more frequent.” 
 

What are the chances?

 

Today there is a trend towards long contracts and short holidays. This partially compensates for the small number of seafarers who still remain in Ukraine and cannot leave. However, the issue cannot be resolved this way. Drewry calls the key motivator for working at sea – the factor of increasing wages. It encourages existing seafarers to remain in the fleet and young cadets to study seamanship. In addition, the agency relies on Ukrainians who have moved to Europe and are starting a new life.

 

“Employers are seeking alternative sources of supply to fill the gap, and wages have also begun to show more volatility,” Drewry notes. While sectors like containerships and offshore supply vessels have already seen increasing wage rates due to the strength of the sectors, we expect wage cost to accelerate for other vessel types as well.”
 
 
Should we expect contract cuts as part of efforts to attract seafarers?
 

This is a dilemma. Apparently, in the near future this is an impossible task.

Contracts need to be made shorter, Drewry believes, then seafarers will be more willing to sign them. But! The shorter contract implies more replacement workers needed, which means that tension in an already tight labor market turns labor shortages into an even more acute problem.
Therefore, companies are moving towards improving conditions on the ship itself. Gyms, cinemas, a library and one of the important conditions is stable Internet. Developments like Starlink from SpaceX could help drive costs down and resolve issues like speed and reliability.
 
Online courses and distance learning, advanced training and certification are another issue that is being highlighted today. Experts believe that this really gives current seafarers more opportunities to skill up and progress in their careers, and to increase the attractiveness of a complex but interesting profession.
 
 
Author of the article: our own correspondent Ilona Skripnik
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How to Protect Yourself While Looking for a Job
For Cadets. Preparing for a Job Interview in English.
 
 




 
 

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