Shipping India - Vision 2020

April 10, 2010

A Seminar organised by; Indian Maritime University & The Institute of Chartered Shipbrokers

Human Resources Supply and Demand: Scenario in the Coming Years

Dr Ramanand Faculty (General Management) Indian Maritime University drrnyadav@gmail.com

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Agenda Points

Importance of Ship and Seafarers Demand and Supply gap Developments in Shipping Industry Effects of Imbalance in Demand and Supply Recruitment Issues: For & Against Sea Job Retention Issues Recommended Actions for Industry and Governments Initiatives by IMU
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Importance of Ships and Seafarers

Facts:

Growing demand for goods and services are being satisfied by shipping industry. Ships carries over 90% of world trade.

Ships are Safe, secure, (cost, time and delivery) efficient and environmentallyfriendly. Shipping Industry is in a state of growth with record numbers of new ships on order.
Without Ships and Seafarers: one half of the world would starve, the other half would 3 freeze.

Population as a challenge to the Shipping World

Demand and Supply Gap

2005 BIMCO/ISF estimate: officer shortfall at 10,000 rising to 27,000 by 2015. 2008 Drewry estimate: officer shortfall at 34,000 against 498,000 total, rising to 83,900 by 2012 assuming current supply levels and fleet growth at 17%.

Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning-2008, Drewry Publishing, London, 2008

Developments in Shipping Industry

1.04 billion dwt* beginning of 2007 (8.6% annual growth) where 65.9% are controlled by developed countries, 31.2% by developing countries and 2.9% by economies in transition. Average age of world fleet is 12 years.
Development of World Fleet in numbers (2001-2007)
100,000 98,000 96,000 94,000 92,000 90,000 88,000 86,000 84,000 82,000

Number of ships

2001 Source: LRF

2002

2003

2004

2005

2006

2007

*) Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning-2008, Drewry Publishing, London, 2008

Developments in Shipping Industry (contd..)

New entrants have been attracted to the market due to the positive economic shipping cycle. The growth of shipping has led to a shortage of seafarers despite recent downturn of economy. One industry estimate (Intermanager) suggests that 400,000 new seafarers and 45,000 new officers will be needed.

Effects of Imbalance in Demand and Supply

Longer working hours and less holidays. Less experienced workforce. Fewer crew members on board. Increase in salaries and age profile. Potential increase in fraudulent qualifications. Impact on quality of service due to increased work, stress, fatigue.

Number of fraudulent certificates reported to IMO (2002-2007)

50 45 40 35 30 25 20 15 10 5 0 2002 2003 2004 2005 2006 2007

Recruitment Issues: For job at Sea

I want a career at sea (22.4%)

To see the world (18.4%)

9 Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning-2008, Drewry Publishing, London, 2008

Recruitment Issues: Against job at Sea

Time spent away from family & friends (67.6%) Time spent away from children (29.7%) Difficulty keeping contact with home (17.5%)

Too much paperwork (34.1%) Fatigue (22.3%) Fear of being treated as a criminal (19.7%) Onboard living conditions (18.3%)

10 Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning-2008, Drewry Publishing, London, 2008

Retention issues

Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning2008, Drewry Publishing, London, 2008

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Retention issues

Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning2008, Drewry Publishing, London, 2008

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Women at sea
Estimated proportion of male to female seafarers

Total estimated female seafarers: 24,500

Male seafarer 98.07%

Female seafarers (passenger ships) 1.81%

Female seafarers (cargo ships) 0.12%

Total estimated seafarers: 1,25 Million
Source: Based on figures from Drew ry, ILO and ITF
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Recommended actions
Industry Focus on creating competitive advantage by:
Quality hiring, developing, retaining and motivating. Finding talent to replace who retire. Invest in talent development. Transforming the bureaucratic systems to flexible processes. Evolve from control based management to empowerment & coaching. Transparency, industry exposure to students, multiculturalism etc.

Improve the image of Shipping

Create a sense of purpose in the processes. Clearly layout the corporate objective Explore possibilities to re-train professionals from related industries (fishing, naval, etc.) Encourage women to work in seafaring positions 14

Recommended actions
Governments To ensure the competitive advantage of maritime industry, all stakeholders, including Governments, has to initiate steps for continuation of competitiveness. Steps can be:

Establishment of training facilities. Supporting campaigns to promote shipping as a career. Providing training incentives to industry. Promoting seafaring for women. Promoting training of unemployed persons. Knowledge sharing by professionals. 15

Initiatives by IMU

IMU is an affiliating University for institutions imparting education in the area of Shipping industry.

IMU facilitate and promote maritime studies, training, research and extension work with focus on emerging areas of studies like oceanography, maritime history, maritime laws, maritime security, search and rescue, transportation of dangerous cargo, environmental studies and other related fields and also to achieve excellence in these and connected fields and other matters connected therewith.
Initiated the process of raising awareness of the issue with government and organisations in the port and shipping industry. Initiated the training and development facilities for making available required number of seafarer.

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Initiatives by IMU (Contd..)

Courses offered by IMU, Associated Campuses and Affiliated Institutions:

B Sc (NS) BE/ B Tech (Marine Engineering) B Tech/ M Tech Naval Architecture & Ocean Engineering B Sc (Maritime Studies) MBA E-MBA Master in Maritime Law* M Sc in Maritime Affairs* M Tech in Marine Engineering Technology* PGD in Marine Engineering/ Logistics & Supply Chain/ Export & Import Management Refresher/ certification courses
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Thank You

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