International Journal

on Marine Navigation

and Safety of Sea Transportation

Volume 3

Number 4

December 2009

471

1 INTRODUCTION

Ninety percent (90%) of the world trade is carried by

the international shipping industry. Without shipping

the import and export of goods necessary for the

modern world would not be possible (Shipping and

world trade, 2007). Seaborne continues to expand,

bringing benefits for consumers across the world

through low and decreasing freight costs. The grow-

ing efficiency of shipping as a mode of transport and

increased economic liberalization, and the prospects

for the industry’s further growth continue to be

strong. There are around 50,000 merchant ships trad-

ing internationally and transporting almost every

kind of cargo.

The worldwide population of seafarers serving on

internationally trading merchant ships is estimated to

be in the order of 466,000 officers and 721,000 rat-

ings.

The OECD countries (North America, Western

Europe, Japan, etc.) remain an important source for

officers, but growing numbers of officers are now

recruited from developing countries, especially the

Far East and South East Asia.

The Philippines and India are very significant

maritime labor supply nations, with many seafarers

from these countries enjoying employment opportu-

nities on foreign flag ships operated by international

shipping companies. China has also seen a large

number of seafarers, but at the moment most of them

work on the Chinese fleet, meeting domestic re-

quirements.

Demand for skilled workers is escalating brought

about by new ships built and delivered since 2004

and more ships scheduled to be delivered even be-

yond 2012 according to Suri, (2007). He further

stressed that the world economy is forecast to con-

tinue its bull run into the next decade, pulling the

world tonnage into new highs. Accordingly, major

crew supplying countries are unable to cope with in-

creased demand for officers.

As of 2006, the current shortage corresponds to 4

percent of the total workforce (16,000 officers) and

predicts a 12 percent shortfall (46,000) by 2010 ac-

cording to a study conducted by Belcher, et

al.(2003).

With the current growth in new ships being built

and scheduled for delivery until 2012, the shortage is

estimated to be 67,800 officers (Odd Magne Skei,

2007).

With this demand for officers in the next 5 to 10

years, the Filipino seafarers will continue to be in

great demand in the world manning industry.

It is in this context that this study was conducted.

2 THE PROBLEM

This study aimed to determine the following:

1 The factors that led to the shortage of officers;

2 The role of the shipping and manning compa-

nies in solving this problem;

Officers’ Shortage: Viewpoints from

Stakeholders

G. Eler, J. Calambuhay, L. Bernas & M. Magramo

John B. Lacson Foundation Maritime University, Iloilo City, Philippines

ABSTRACT: This qualitative research looked into the views and opinions of the different stakeholders in the

shipping/manning on the shortage of qualified and competent officers to handle modern ships of today. This

shortage poses the biggest challenge shipping companies are currently facing. An in-depth interview of the

participants was utilized in the data gathering for this study. It also looked into what maritime schools can do

to help solve this problem. Findings showed that there are many sectors involved and have contributed to the

present shortage of officers, namely: the shipping companies, the manning companies, the maritime schools,

government agencies and the attitude of the seafarers themselves, not to mention the continuing demand for

new vessels brought about by globalization of trade and industry.

472

3 The intervention that the maritime schools

could initiate to help alleviate the shortage;

4 The role of the Philippine government agencies

in solving the shortage.

3 METHOD

This research employed the interview and focused

group discussions in data-gathering. The participants

of this study were the different manning company

managers and the seafarers. It utilized an in-depth

interview of the participants.

The participants of the study were the different

ship owners and presidents of various shipping com-

panies. The interviews took place on the basis of in-

formed consent. Focused group discussion took

place at the respective offices of the ship managers.

All the interviews and focused group discussion

were vide-taped recorded and transcribed verbatim.

3.1 Modes of analyses

There are a lot of factors that led to the shortage of

officers, based on the interview conducted among

the key informants. The following are noted:

3.1.1 The Role of the shipping companies and ship

owners.

The shipping companies themselves or the ship

owners were reluctant or hesitant in promoting Fili-

pino junior officers to senior officers because the

ship owners are afraid this would displace their own

officers. This was stressed by Mr. Vicente Aldanese

(2007). This was also affirmed by Mrs. Carla S.

Limcaoco (Philippine Transmarine Carriers) who

said: “These are glass of ceiling and glass walls dur-

ing those time; Filipinos can only assume positions

in bulk carriers, general cargoes and tankers. Ac-

cording to Mrs. Virginia Linesis (K-Line Maritime

Training Center, President) the same situation is

happening on Japanese vessels because it is only

now that Filipino senior officers are given the oppor-

tunity to take a command or given the responsibility

of master or captain on board. In the past, Filipinos

were not given the opportunity to be in command of

Japanese vessels. The same observation was men-

tioned by Mrs. Brenda Panganiban (Bouvet Shipping

Management Corporation); who said: “the company

is having difficulty in hiring the top 4 or senior of-

ficers (management level). Based on statistics, the

manning industry is really experiencing shortage of

qualified and competent officers because the indus-

try was not able to foresee that this would happen.”

According to Capt. Martinez, the foreign principals

or owners had greatly contributed to this problem

because “they were not willing to give chances to

those who are capable of being promoted for the po-

sition.”

3.1.2 New ships being built

Statistics show that from 2006 new vessels into

the global fleet of 5,650 within 2010 will require an

estimated 67,800 officers including 22,600 senior

officers (Skei, 2007). This further aggravates the

shortage of officers in the world manning industry.

According to Mrs. Carla S. Limcaoco, the people

who ordered ships are the board of directors, owners

of the shipping companies have not seen this prob-

lem on shortage coming because they have not in-

vested in people. The owners presumed that there

will always be people who will be available to han-

dle or man their ships.

A ship takes six months to build, but it takes four

years to produce a junior officer and then six years

more for him to attain senior ranks. While ship pro-

duction has shot through the roof, officer production

has been totally neglected.

3.1.3 Training infrastructure in the Asia-Pacific

has not been developed for increased produc-

tion of officers.

This was stressed by Suri (2007) during the 8

Asia-Pacific Manning Conference in Manila last

November 14-15, 2007. The production of officers

in the Philippines-the largest supplying country -

dropped from above 12,000 annually to below 5,000

after the crackdown on sub-standard training insti-

tutes.

Likewise, production in India has not seen any

increase in many years, although India has tremen-

dous potential to do so. Other crew supplying coun-

tries in the Indian sub-continent- Bangladesh, Paki-

stan and Sri Lanka lacks the political recognition of

maritime training as an important national issue or

the inabilities of the academies to attract potential

sponsors and investors, continue to restrict growth.

According to Mr. Ajoy Chaterbee (Kumar, 2007)

“the shortfall of seafarers negatively impacts the

shipping industry as a whole whereas both the on-

board and on- shore maritime related work posts

face manning problems that may directly threaten

the existence of the shipping activity and the suste-

nance of maritime know-how”.

Production in China has seen some growth, but

the growth is dwarfed by the growth in Chinese do-

mestic fleet, giving no relief to the international de-

mand. In any case, much more needs to be done to

improve the standards of training as well as English

language proficiency. Apart from this reality, China

is short of 13,000 high-level maritime workers as the

shipping industry continues to develop according to

Xen Dingding(2006). Today, China ranks 9

in the

top 20 largest shipping flags (Shipping and World

473

Trade, January 2007) and ranks 6

among the top

contracting countries by number of vessels on order.

3.1.4 The attitudes towards the seafaring

profession.

The induction of new entrants into the seafaring

profession has not increased in proportion to the at-

trition of experienced seafarers. Many alternate ca-

reer options that are lucrative, comfortable and so-

cially recognized have pushed seafaring down as a

career choice. The best of the youth today look for

honorable careers with social status, perks, five- day

/ week work, clear path and equal or higher

wage/benefits package than seafaring can offer. The

incentives that the industry offers to the officers are

limited to the matching what other professions offer

and lack a comprehensive packaging as an industry

standard. Seafaring is not the preferred profession

for youngsters in developed nations according to

Grover (in Kumar, 2007).

3.1.5 The competencies of the new graduates from

maritime schools are always questioned.

This idea was disclosed by Mrs. Virginia Linesis,

President of K-Line, one of the respondents of the

study. Along with it is the issue of the competence

of the teachers. These teachers are not recently dis-

embarked from the vessel, meaning they have been

teaching long enough and have not undergone up-

grading on board vessels. The school, according to

one of the interviewee: “The school should also look

into its curriculum; look at the issue of its relevance

in today’s world. There are certain subjects that are

non-negotiable that students have to study. But are

they relevant?”

3.1.6 There are government agencies that hamper

the growth of our officers, like the PRC Reg.

Act 3544.

After passing the board examinations, they are

supposed to be given certificate of competency

(COC), however they have to attend various upgrad-

ing courses like the management level course

(MLC) required by the agency which further delays

the issuance of said certificates.

4 FINDINGS

1 The shipping companies themselves or the ship

owners were reluctant or hesitant in promoting

Filipino junior officers to senior officers because

the ship owners are afraid this would displace

their own officers. The foreign principals or

owners had greatly contributed to this problem

because “they were not willing to give chances to

those who are capable of being promoted for the

position.”

2 Construction of new ships brought about by the

growth in the world economy further aggravates

the problem of shortage of officers in the world

manning industry. Statistics show that from 2006

to 2010, new vessels into the global fleet of 5,650

will require an estimated 67,800 officers includ-

ing 22,600 senior officers ( Skei, 2007).

3 Training infrastructure in the Asia-Pacific has not

been developed for increased production of offic-

ers. The production of officers in the Philippines -

the largest supplying country - dropped from

above 12,000 annually to below 5,000 after the

crackdown on sub-standard training institutions.

4 The induction of new entrants into theseafaring

profession has not increased in proportion to the

attrition of experienced seafarers. Seafaring is not

the preferred profession for youngsters in devel-

oped nations.

5 The maritime schools should review its curricu-

lum as to its relevance in today’s industry de-

mands.

6 The additional requirements of the Professional

Regulations Commission contribute to the delay

in the acquisition of the certificates of competen-

cy among the officers passing the board exams.

5 RECOMMENDATIONS

1 The need to improve the image of the maritime

career and to attract young people to the seafaring

profession is of utmost importance today in order

to sustain the growth in international shipping ac-

tivities. Human resource development is more

complex and time consuming than development

of trade and technology. Human resource, unlike

machineries, cannot be drafted on drawing

boards, nor programmed on computers. A ship

takes 6 months to build, but it takes 4 years to

produce a junior officer, 6 years more for him to

attain a senior rank.

2 There is a need to promote officers who are al-

ready holding higher licenses and qualified to as-

sume the next higher position especially Chief

Mates and 2nd Engineers.

3 The career path of officers and crew should be

mapped out in order to promote loyalty to the

company. This has been practiced by some Japa-

nese companies like the K-Line whose retention

rate of its officers is 96%.

4 The shipping companies should invest in people.

As much as possible, they need to establish tie-

ups or linkages with maritime schools who are

the producers of competent graduates. Scholar-

ship grants to deserving students should be en-

hanced.

474

5 Improve the quality of deck and engine graduates

of the maritime schools. While most Filipinos are

able to speak English, there is still a need to im-

prove the speaking competencies of the graduates

of the maritime schools. There is also a need to

focus attention in mathematics, science and phys-

ics.

6 The Professional Regulation Commission (PRC)

should implement the walk-in examination

(WES) system as soon as possible.

REFERENCES

Aldanese, V. F. (“The Impact of increasing challenges within

manning and training”, A paper delivered at the 8

Asia-

Pacific Manning and Training Conference, November 14-

15, 2007, Manila: Philippines).

http:www.marisec.org/shippingfacts/worldtrade/top-20-largest-

shipping flags

Kumar, S. V. (“Shortage of seafarers takes wind off maritime

activities” The Hindu Business Line, April 5, 2007).

Marques, E. M. (“Joining Hands to Meet Global Demand for

Filipino Seafarers through a Committed Partnership”, A

paper delivered at the 8

Asia-Pacific Manning and Train-

ing Conference, November 14-15, 2007, Manila: Philip-

pines).

Skei, O. M., (The Growing Shortage of Qualified Officers”, A

paper delivered at the 8

Asia-Pacific Manning and Train-

ing Conference, November 14-15, 2007, Manila: Philip-

pines).

Suri, S. (“A synopsis of current manning situation, strategic di-

rections and emerging markets as a solution to worsening

officers shortage”, A paper delivered at the 8

Asia-Pacific

Manning and Training Conference, November 14-15, 2007,

Manila: Philippines).

Xin D., Sailor Shortage in Growing Industry;

China Daily, Apr.20, 2006