Containers near a cargo ship anchored at a dock in the southeastern port city of Busan on November 24, 2024.
Anthony Wallace | AFP | Getty Images
The shipping industry is grappling with a global shortage of seafarers, fueling a troubling set of problems including fake resumes, maritime accidents and rising freight rates.
“We’ve been seeing a shortage of seafarers,” Rhett Harris, senior manning analyst at Drewry, told CNBC. Although the number of ships has grown “exponentially” in recent years by thousands per year, he said, But the manpower required for these ships has not kept pace.
“Companies have to hire seafarers with less than the ideal level of experience,” Harris added, noting that the supply of officers, especially engineers, is smaller than that of deck officers.
Today, young people prioritize work-life balance and are reluctant to pursue careers that require long periods of time away from home.
Li Dazhen
FertiStream Global Head of Research
Houthi attacks in the Red Sea and the ongoing Russia-Ukraine conflict are having a knock-on effect on the supply of skilled sailors, experts told CNBC.
“Both Ukraine and Russia provide large numbers of professional seafarers. However, the conflict between Ukraine and Russia has really reduced the supply of seafarers from both countries as they face overall labor shortages due to the war,” Daejin Lee said.
The Philippines, China, Russia, Ukraine and Indonesia are the world’s largest suppliers of seafarers, according to the latest 2021 Seafarer Workforce Breakdown Report from the International Chamber of Shipping (ICS) and BIMCO.
Before Russia invaded Ukraine in February 2022, Russian and Ukrainian seafarers account for almost 15% of the global shipping workforceICS data display.
ICS told CNBC via email that it expects to have a shortage of 90,000 trained seafarers by 2026. “Policymakers need to develop a national strategy to address seafarer shortages,” the shipping group said.
“If we are to address the shortage of seafarers needed to keep the industry thriving, then we must proactively recruit a more diverse workforce, which is one of the biggest challenges currently facing our industry,” the ICS said.
Geopolitical events are also bringing more dangers to the sea Iran-backed Houthi rebels continue to attack Red Sea shipsThis makes the role less attractive, ICS added.
No longer an attractive career
Henrik Jensen, CEO of Danica Crewing Specialists Group, an international maritime recruitment and manning service company, said that existing maritime personnel also prefer to work ashore rather than go to sea. On top of that, sailing is becoming less attractive to younger generations, which could be the nail in the career’s coffin.
“In the past, seafarers’ wages were high enough to make it a financially attractive option. But now, young people prioritize work-life balance and are unwilling to pursue careers that require long periods of time away from home,” FertiStream’s Lee said.
For those who grew up with the internet and mobile phones at their fingertips, life at sea without constant connectivity may not be ideal, Drewry’s Harris said.
As a result, more companies are trying to attract younger generations with entertainment and fitness facilities on board and shorter cruises of two to four months, he observed.
False resumes and accidents
Industry experts say a tight supply of seafarers has led companies to offer higher wages to attract talent from a limited talent pool, but has also led to applicants trying their luck at unqualified vacancies by submitting polished resumes to get in. them.
Analysts say false resumes have become more common in the industry since the shortage, with seafarers increasingly falsifying their shipboard experience and sea leave.
“There are a lot of people who are modifying their resumes to get higher grades and higher salaries,” Jensen said. After trying to confirm the experience of these seafarers’ previous employers, he found thousands of such modified resumes.
Those on board are paying the price.
“Shortages, severe shortages… it affects me. I can’t find the right people (for my crew),” said the captain of a global shipping company, who asked CNBC not to use his name for fear of retaliation. their company.
On September 30, 2024, a ship carrying containers passed through New York’s Upper Bay.
Caitlin Oakes | Reuters
“Standards for seafarers are falling. Because now they only need people with licenses,” the captain said, adding that he had recently had to fire more seafarers whose abilities were questioned.
Existing seafarers are also required to go to sea for longer periods of time continuously, while fewer and fewer are able to do so. Fatigue and mental stress can lead to impaired mental health in some people and even lead to accidents on board ships.
Subhangshu Dutt, executive director of Om Maritime, said the safety of ships and crews could be compromised due to factors such as inexperience, lack of proper maintenance and fatigue.
in a World Maritime University Research 2024More than 93% of the 9,214 seafarers surveyed cited fatigue as the most common safety-related challenge on board ships. About 78% reported not taking a day off during their entire contract, which could last several months.
Maritime transport is an integral part of the world’s supply chain – Accounting for more than 80% of global trade volume According to the United Nations Trade and Development Organization, it is carried out by sea.
Dutt said crew shortages could also disrupt supply chains as ships could be stranded in ports.
On top of that, seafarers’ wages account for a large portion of ship operating costs, and costs are expected to remain high as companies raise wages to attract and retain talent, Li said. This could keep freight rates high, adding some inflationary pressure, he explained.
Other experts agree that the seafarer shortage will persist for several years, recognizing it as one of the biggest obstacles the industry has to face.
“This is really one of the biggest challenges facing the industry,” Li said.
