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Source: blThe Hindu Business Line 
(http://www.blonnet.com/2008/11/03/stories/2008110350990600.htm)
 
Crew shortage — a distress signal for shipping
 
 

 

 

 

 
 
 

 
Not enough trained crew? The new ships to be delivered could very well lie idle 
as ship managers may not be able to find enough competent crew-members to man 
them. 
 
 

Santanu Sanyal 
Reports have it that Gateway Terminals India Pvt Ltd (GTI), the APM 
Terminals-Concor joint venture that owns and operates a modern container 
terminal at Jawaharlal Nehru port, recently announced the launching of its 
Talent Development Centre on its campus. 
Equipped with state-of-the-art training facility, the training centre, the 
reports suggest, is to provide hands-on experience of work in the terminal 
environment for developing world-class maritime professionals.
A sizeable investment must have gone to set up the centre and create the 
training facilities, and that at a time when the global financial crisis 
continues to bite and rumours of shipowners and operators in financial trouble 
are swirling in the market. 
The last few years witnessed an unprecedented level of investments in manpower 
training by many individual owners as well as others in several countries and 
these investments were made against the backdrop of a boom in shipping, with 
ship owners having placed huge orders for new buildings with the world’s 
major shipyards, fuelling speculation that the demand for crew will virtually 
skyrocket when the shipyards start delivering the ships.
 
Turbulent scene
 
 

With the shipping bubble, which saw dry bulk freight rates and asset prices hit 
record levels a few months ago, now truly burst and reports of cancellation of 
new building orders pouring in from shipyards, one might wonder if the 
projected demand for crew will really materialise. 
There have been reports of casualties also. A Ukraine-based bulk carrier outfit 
is the first to go down and reports suggest that the list of potential 
casualties in not short. Also, as a Korean shipowner has warned, extended 
charter party trains, with multiple sublets of a single vessel, makes serial 
defaults a distinct possibility. 
The problem is compounded by the fact that the bankers who were friendly to 
shipowners till recently have now become rather less friendly. 
Anyone hoping for leniency in repayment schedules is likely to draw a blank.
There is another problem. There is a lurking fear that if the present situation 
continues, many shipowners in distress might choose to walk away from their 
contracts with the crew. Some may even use bankruptcy legislation to avoid 
paying what they owe to others. 
If past experience is any indication, in a situation like this, even the 
biggest and best-established businesses may disappear overnight. 
Some analysts have expressed apprehension that the weeks ahead might see dozens 
of crew stranded in various ports around the world, thousands of miles away 
from home, and without any money to buy a plane ticket. 
The question all this throws up is: will it be worthwhile to make investments 
in training if money is tight and shipping markets continue to be hit by a 
cyclical downturn? The answer is yes, even as the shipping industry frets over 
the prospects of large-scale new building cancellations. 
 
Daunting shortage
 
 

The reason is simple: there may be fewer newbuildings but there will be even 
fewer new competent seafarers if training programmes get hit. How the industry 
is going to man those ships that do actually get delivered remains a major 
concern. 
It is feared that ships could very well be lying idle as ship managers will not 
be able to find enough competent crew to man them. With an estimated 4,00,000 
seafarers and 45,000 new officers required to man 10,000 vessels, crew shortage 
remains a daunting and worrying prospect. 
 
 
Philippines initiative
 
 

The Philippines is a major supplier of crew to world shipping and the manning 
industry in the Philippines, according to a report, has urged ship-owners to 
work with it on a national basis to develop seafarers for the future, the way 
Japanese ship-owners have done now for many years.
According to a report in Lloyds List, the representative bodies from the 
manning industry in the Philippines are going out to the villages to explain to 
teenagers the benefits of a career in the maritime industry. 
In Singapore, with much larger focus on shore-based careers, both the 
authorities and industry are trying to reach out to young people through 
various programmes. 
The International Maritime Organisation Secretary-General, Mr Efthimios 
Mitropoulos, said recently that his organisation proposed to launch a worldwide 
campaign to bolster the image of the shipping industry.
 

 

 

 
 
Related Stories:
Govt clears proposal for Indian ships to have foreign officers
Officers shortage hits shipping industry
Demand for merchant navy officers from India rising


Copyright: 1995 - 2006 The Hindu Business Line

Republication or redissemination of the contents of this screen are expressly 
prohibited without the consent of  The Hindu Business Line

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