In 2005, the International Shipping Federation reported a global shortage of officers to the order of 10,000 individuals. Since then, these shortages have been increased significantly by the 2007-2008 ship-building boom that saw the number of ships delivered in 2008 and 2009 skyrocket. At the same time, the number of ships being scrapped was at a record low as ship owners took advantage of high charter rates. Now the ISF estimates figures for 2010 at 25,000, an extremely worrying trend.

While we deal with much smaller numbers in Australia, our shortage is keenly felt. This has been driven by the offshore sector that is currently experiencing all-time high levels of activity. Meanwhile, the Australian blue-water fleet struggles to survive.

In Australia, the model used for training officers is expensive and cannot produce a quick-fix solution to the problem. The majority of trainee officers are either employed or sponsored, and the estimated cost of training one person over four years is $200,000. This includes 18 months sea time for deck officers and nine months sea time for engineer officers and a diploma qualification (an extra six and three months respectively, more than any other country). While there are many permutations of how this training can be done, the fact is, training comes at a cost. And unfortunately, the ship owner carries this cost and has to provide each trainee with a berth on a ship.

The question is, why don’t we follow the international model where individuals cover their training costs (as is also the case with over 90% of tertiary qualifications in Australia), with ship owners chipping in as the provider of sea time, rather than being the employer for four years? Surely a reduction in the required sea time would allow a greater number of people to be trained. Accordingly, the number of available ship berths would open up, reducing the unit cost of training each person.

It’s interesting to note that Vietnam, seen by some as one of the next major global sources of manpower for the shipping industry, faces a very similar problem to Australia. After completing four- and five-year courses (at the individual’s own expense), candidates suddenly find themselves unable to obtain sea time to complete their qualifications.

In 2007, the Vietnamese officer candidate drop-out rate between completing studies and obtaining the necessary sea time to be qualified was in the order of 70 to 80 percent, primarily attributed to a lack of training berths. An IMO working group has put forth a proposal that each new ship have a training berth, but how this will be managed will no doubt dictate the success of such a scheme.

Many Australian shipping companies have not shied away from the cost of training, given that it is central to their ongoing survival, yet we’re still not producing the
number of skilled workers we need. The option of using international workers with suitable visas is one solution, but in the long term, it will run against national interests and requirements.

In the end, the way we prepare people for shipping industry jobs needs a comprehensive and thorough review. Though there is no easy answer, training needs to be simplified and made cost-effective before real inroads are made into the officer shortages we face in Australia.

Please call or email us if you have a project you’d like to discuss. From compliance and operations initiatives to educational seminars, no matter where you’re located, we aim to support and enhance your shipping business, not just for today but for the future.

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Chances are the only time you think of the shipping industry is when something goes wrong and the event becomes a news story, like an environmental accident caused by a bulk carrier running aground, e.g. lately, the Shen Neng 1, or a freighter sinking in bad weather. Not only is time lost when incidents like this occur but sometimes lives are, too.

The global shipping industry, like any other industry relies on its workers to make things happen; to load and unload ships, to navigate shipping lanes in all kinds of weather, and to do it all on schedule while following specific maritime regulations and protocols.

Australia relies heavily on its ability to export goods to other parts of the world. Currently, we are in the middle of a major mining boom. Australian Iron Ore, Coal, Alumina, LNG and a variety of other minerals are in growing demand in China. The growth in our exports, both in quantity and value, is growing on the back of this boom, as are wages for miners.

“Head west and earn big dollars” is a common catch cry. Even the opposition leader jumped on the band wagon, rallying all young unemployed people to head to the mining zones and fill the positions these companies cannot at the moment. Wages in excess of $100,000 are regularly touted in the media, and are certainly good money for driving a truck. Yet how many Australians know how much the average seafarer earns or what role that person plays in carrying our wealth away?

With low unemployment, a solid banking sector and excellent debt levels, Australians are in an enviable position. The retail sector has only seen a minor drop in revenue during the much publicised GFC. TV retailers are now drooling over the possibilities of increased sales from the introduction of 3D television. Likewise, people are still buying cars, home furnishings, clothes and other items that are imported from around the world. The majority of these items are imported using ships. Without ships, you wouldn’t be able to sit back on a Saturday night and watch a movie on a 3D TV with surround sound.

It is reasonable to say that the average person may know about the Shen Neng 1 damaging the Great Barrier Reef, the Exxon Valdez spilling oil in Prince William Sound, Alaska, and the sinking of the Titanic all those years ago, but these are stories of ships that made media headlines around the world and do not illuminate the need for us to understand the key role they play in how we live.

Shipping is as critical to us as our roadways, rail and air routes. Without being able to import and export goods using this vital method of transportation, we would surely not only see a dramatic downturn in our economy but we’d be forced to live much simpler, less modern lives.

McGuire Consulting, in association with the Australian Shipowners Association, runs a one-day course several times a year, to educate non-shipping people on ships and the shipping industry. For more information, please see the Education page of this website.

Please call or email us if you have a project you’d like to discuss. From compliance and operations initiatives to educational seminars, no matter where you’re located, we aim to support and enhance your shipping business, not just for today but for the future.

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The Chief Mate was allegedly on watch when the vessel ran aground, with the rumour mill saying he had fallen asleep. The facts will no doubt be revealed over the coming weeks as Australia looks to pin the blame on someone for the damage caused to our reef, the holy grail of marine parks on Earth. It is also worth noting that the individuals in question are Chinese and Vietnamese crew members. The use of these nationalities for workers is common, as consumer nations around the world want their goods to be shipped as cheaply as possible. Transport is the most obvious place to save money, and Chinese and Vietnamese crews are as cheap as they come.

Here is an interesting fact about Australia’s bulk export tally. Last week it was reported that Australia had a record number of bulk ships – 230 in total – at anchor waiting to be loaded. This reflects a staggering proportion of the global fleet and indicates two things; firstly that we are not able to load our ships fast enough to reduce this number, and secondly, there is no let-up in the demand for our raw bulk products. So our aim, as an exporting nation, is to load ships as quickly as possible and let them sail without delay.

Gladstone, where the Shen Neng 1 loaded, is now capable of loading ships with coal at a rate of 4200 tonnes per hour (per loader). Newcastle can achieve rates of 10,500 as does Port Hedland with iron ore. Chief Mates on these vessels are responsible for overseeing the loading of cargo. Simultaneously, they are also responsible for the de-ballasting of the vessel. This work is highly demanding and often consumes the Chief Mate’s time for the entire period the vessel is in port. For a 65,000-tonne vessel, that is 17 hours load time, and 5 to 6 hours under pilotage and berthing, in total an exhausting 24-hour operation.

The International Maritime Organisation has regulated the number of hours seafarers should work to avoid fatigue in these situations. First-hand experience has shown me that pressure from tight schedules can often mean that time logs are modified and fudged to meet the requirements of inspectors, not to reflect the reality of hours worked. Can you imagine a 200,000-tonne vessel interrupting loading operations for 12 to 24 hours because the crew is fatigued? Should this happen, 230 ships waiting at anchor would be almost laughable.

In a country that is desperate to export its resources without paying exorbitant prices to ship its goods and preserve its environment, we need to assess the pressures we place on the people who make this happen. Surely goaling or fining these seafarers will provide a scapegoat to vent our anger over this grounding – that is until the next grounding or ship incident occurs and raises the ire of a public blissfully ignorant of the hardships incurred by the people who carry our wealth to its destination.

Please call or email us if you have a project you’d like to discuss. From compliance and operations initiatives to educational seminars, no matter where you’re located, we aim to support and enhance your shipping business, not just for today but for the future.

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A little background about me:
I’ve spent 18 years in the maritime industry, including 12 at sea as a deck officer. This has given me wide-ranging experience in shipping from onboard operations and ship management to ship ownership.

I have worked in the Australian and international ship management area for six years, and have specific areas I am most passionate about like:

• Seafarer criminalization
• Seafarer conditions/welfare: I have worked with Australian, Eastern European, Chinese, Filipino, and Vietnamese crews at all wage levels.
• Offshore oil and gas industry
• Seafarer training
• Antarctic shipping
• Shipping education (for workers and those on the periphery of the industry as well)
• Human factors in shipping incidents

We’d like to make this blog as interactive as possible and encourage ongoing feedback, comments and discussions. Be on the lookout for new posts coming soon, subscribe to our RSS feed, and feel free to connect with us on Twitter and LinkedIn.

Please call or email us if you have a project you’d like to discuss. From compliance and operations initiatives to educational seminars, no matter where you’re located, we aim to support and enhance your shipping business, not just for today but for the future.

Regards,