ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

UNITED NATIONS

New York, 1995

I ST/ESCAP/1629 I

The designations employed and the presentation of the material in this publication do not imply theexpression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legalstatus of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiersor boundaries.

This document has been issued without fonnal editing.

EXECUTIVE SUMMARY

The present study is focused on seafarers as an essential manpower resource for theshipping industry or the marine transport sector with special reference to the countries in theAsia-Pacific region.

A number of countries in the region are major shipowning countries and many othershave become increased their shipping fleets over the last two decades and count among thelargest 25 shipowners in the world. The demand for seafarers to man the expanding fleets ofeach of these countries has correspondingly increased. Tl}e study highlights the rising demandfor seafarers by countries within the Asia-Pacific region to work on the nationally registeredvessels

and to operate their port and shipping-related activities.

Major issues relating to seafarers have shifted in the last several decades from theconcern for the welfare, fair wages, and conditions of work of seafarers to the role seafarersplay in maritime mishaps and pollution of the sea. It has been estimated that seafarers aredirectly or indirectly responsible for between 60 to 80 per cent of all shipping incidents. Otherestimates put it at 85 per cent of all shipping incidents at being due to human error.

The shortage of seafarers, particularly officers, which was brought to the attention ofthe world shipping community by the results of the 1990 BIMCO-ISF continues to be a matterof grave concern. Insufficient maritime manpower has already. seriously affected shipping inwestern countries. There has been a long-term decline in the number of seafarers in developedmaritime countries including Japan and also in a number of Asian economies such asSingapore, Hong Kong and the Republic of Korea. They are following the experience ofwestern maritime countries in findin~ effective ways to deal with the shortage of maritimemanpower.

These include flagging out to open registries an.d setting up second registries oftheir own in order to enable their shipowners to employ cheaper seafarers from developingcountries.

Discussion is focused on seafaring and national development. It is noted that mostcountries maintain a policy of restricting employment on national registered ships for localseafarers. This is clearly not possible for those countries that are short of national seafarersto crew all the ships on the registry. There are cogent arguments for having a strong core ofnational maritime manpower incl~ding reasons of national security, efficiency, and not leastof all, their valuable skills when they come ashore for employment in shipping and port-related services.

New opportunities for trained maritime manpower also arise from the fast growingports in the Asian and Pacific region. More than half of the largest 20 container ports aroundthe

world are located in the Asia-Pacific region. There has been increased employmentopportunities for port masters, harbour pilots, hydrographers, marine surveyors, shipinspectors, port administrators, among other jobs, in all of the ports.

Trained seafarers are also in demand for other shore positions. These are essentialpersonnel to operate shipyards, undertake administration of maritime matters, manage shippingand

related companies which together form the larger community of the shipping industry of

the countries concerned. There is also a great need for trained instructors, educators, andresearchers in the maritime field.

It is estimated that the region has increased its requirement of seafarers by some132,000 over the period 1985-1994. This does not take into account the annual attrition of 7-10 per cent which requires replacement of retired or deceased seafarers over the period. Asiawould therefore have to produce some 15,000 trained seafarers each year to satisfy theincrease in demand from within the region. For Asia to continue to supply maritime labourto the rest of the world, the region would have to raise the rate of production perhaps as muchagain in order to meet the increased demand by foreign sl1ipowners.

Attention is paid to the need to plan maritime manpower and the need for regionalcooperation among countries in the Asia-Pacific region. It is noted that, in spite of theimportance

of the seafaring and shipping industries, few countries undertake planning toestimate their requirements for maritime manpower. There are clearly apparent existingdifferences

in recruitment, manpower planning and training policies among countries in theregion and there is a need to create a central body to assess, make projections about futurerequirements,

and coordinate manpower planning and recruitment both in the national andregional levels.

There is an urgent need to upgrade the quality of maritime education and training indeveloping countries supplying maritime manpower to foreign shipping. The call is made tonational governments to give appropriate emphasis and demonstrate stronger commitment tothe

task. However, these countries encounter serious shortage of funds and resources requiringcontributions from foreign and local shipping enterprises. One suggestion is imposing a levyon ship operators for each seafarer hired.

The report also offers the following recommendations to overcome the problems facingthe maritime manpower in the region:

(a) Establish an international database using information technology on the supplyand demand for Asian seafarers perhaps under the Division of Transport,

Communications and Tourism in the Economic and Social Commission forAsia and the Pacific (ESCAP) in order to anticipate future demand for Asian

seafarers from within the region as well as for foreign shipowners.

(b)

Encourage

forward planning of maritime manpower both for seagoing andland-based employment on a national as well as on regional basis. Informationgenerated from national maritime labour planning would necessarily be basedon regular updates of data relating to seafarers, improved information ontraining

institutions, and regular surveys on shipowners and other employers.

(c) Hold regular meetings among government agencies concerned with theadministration of seafarers as well as maritime training institutions. Initiallythis

could be undertaken under the umbrella of the Association of South EastAsian Nations (ASEAN) and subsequently augmented to include the majoremployers of maritime labour as well as the significant suppliers of seafarersfor international shipping.

11

(d)

(e)

Develop greater uniformity of training programmes with the region throughstandardizing the curriculwn, exchange of teaching manuals and other materialsas well as instructors.Promote the use of the English language for communications since it is theaccepted international language for commercial purposes.

(f)

Undertake research to better understand the role of crewing agencies and shipmanagement companies that have taken over the task of manning as well as theoperation of ships from shipowners.

(g)

-.Promote healthy relations among seafarers' unions and shipowners on the onehand and government on the other in order to ensure protection, promotion of,and the provision of welfare services for seafarers as well as to engender theorderly increase in wage rates and conditions of work for seafarers.

III

MARITIME MANPOWER FOR THE SHIPPING INDUSTRYIN THE ASIA -PACIFIC REGION

PREFACE

...In 1994, world seaborne trade achieved a new record of 4.46 billion tons, havingincreased

by 3.0 per cent in 1994. This compares with an increase of 2.6 per cent in1993. The total services in ton-miles in global trade increased in 1994 by 2.8 per cent,over 1993, to 19,500 billion. The world merchant fleet expanded by 8.5 million tonsdeadweight in 1994.

It is estimated that in excess of 85 per cent of all international trade is carried bysea. Without adequate maritime transport, world trade would be severely restricted, andthe impact on developing economies would be serious. It is axiomatic therefore, thatthere must be an adequate supply of trained seafarers to work on the increasing numberof ships required to meet the needs of expanding trade.

Simultaneously with this trade growt~, there is an growing requirement forimproved ship management and safe navigation, to meet higher standards of operation

for environmental protection an.d the safe transport and handling of hazardous cargoes.Better qualified ship officers and crews are required in greater numbers than everbefore,

which is exacerbating the already serious shortage of trained personnel.

The Asia-Pacific region is a major source of seafarers, who served not only onships of their national fleets, but on the ships of many maritime countries. These

employment opportunities, and the earnings in foreign exchange remitted by theseseafarers are significant social and economic factors in the developing countries of theregion.

With the increasing demand for more seafarers who are better trained and higherqualified, Governments of the region need to focus on the requirements of theinternational

shipping industry, if the economic benefits are to continue, or expand.

In addition, increas~d trade requires more ports, and increases in the capacity ofall the maritime service industries. These all require experienced mariners to manageand operate efficiently, in the interests of the trading community, and the economicwell-being

of the developing countries.

This study focuses on the many issues which need to be addressed byGovernments and the shipping industry itself if the region is to obtain the full benefitsof

its economic growth through efficient maritime transport. It also highlights the needfor providing sufficient training establishments of a high standard, and the advantageswhich can accrue to the countries through the employment of their nationals in theinternational

shipping industry.

IV

MARITIME MANPOWER FOR THE SHIPPING INDUSTRY INTHE ASIA-PACIFIC REGION

CONTENTS

~1.

INTRODUCTION1

1234

1 .1 Major issues1.2 Shortage of trained seafarers1.3 Aims of the study1.4 Terms of reference

2.

SEAFARING AND NATIONAL DEVELOPMENT 5

2.1 New oppor1unities for employment of trained seafarers2.2 Contribution of trained seafarers employed in shore positions2.3 Direct financial benefits of employment on foreign vessels2.4 Promotion of seafaring

789

10

3.

THE EXPANSION OF TRADE AND SHIPPING

111111123.1

Expansion of world seaborne trade3.2 Expansion of shipping in the Asia-Pacific region3.3

Promotion of fleet expansion

4.

DEMAND FOR ASIAN-PACIFIC SEAFARERS

13

131415

4.1

Demand for seafarers within the Asia-Pacific region4.2 Advanced ship technology and reduction in crew complement4.3 Demand for Asian seafarers by western shipping

5.

SUPPLY OF ASIAN SEAFARERS 16

5.1

Results of the BIMCq-ISF study5.2 Sources of supply of maritime manpower

1618

6.FALLING

NUMBER OF SEAFARERS OF DEVELOPED ECONOMIES 25

6.1

Japan6.2 Hong Kong6.3 Singapore6;4 Republic of Korea

25262829

v

7.

RESPONSES TO THE SHORTAGE OF MARITIME PERSONNEL

313233

3435

7.1

Hiring foreign crew7.2 Flagging out7.3 Creating international shipping registers7.4 Engaging crewing agencies or ship management companies

8.

TRAINING AND EDUCATION OF SEAFARERS 35

3639

39414445

8.1 Advanced maritime countries in the Asia-Pacific region8.2 Economically emergent states8.3 India and the Philippines: major sources of seafarers for.

foreign employment8.4 Countries aspiring to be suppliers of seafarers8.5 Pacific island nations8.6 The urgent need to provide proper training for ships' officers

9.

PLANNING MARITIME MANPOWER AND REGIONAL COOPERATION 46

4748

48

9.1

Planning at the national level9.2 Planning at the firm level9.3 Cooperation within the seafaring industry

10.

CHALLENGES FOR THE SEAFARING INDUSTRY

50

5152535454

10.1

Meeting the requirements of international maritime regulations10.2 Upgrading maritime education and training10.3 Reducing wastage rates of seafarers10.4 Dealing with the problem of unemployment10.5 Enhancing the role of seafarers' unions

11,

SUMMARY AND RECOMMENDATIONS 55

11.1

Recommendations for action11.2 Concluding remarks

55

57

BI

BLiOGRAPHY 59

vi

LIST OF TABLES

1. Demographic and economic indicators of selected developing economies inthe Asia-Pacific region, 1993

2.

Merchant shipping fleets by country of registry, Asia-Pacific economies,1985, 1990 and 1994

3.4.

World seaborne trade by type of cargo, 1970-1993...National and beneficially-owned shipping fleets of major Asia-Pacificeconomies,

31 December 1993

5.

Number of ships on order by country of domicile and country of flag, Asia-Pacific countries, as at June 1995

6.

A crew model based on the shipboard organization for a modern ship

7Trends

for crew complement for various ship types, 1982-1992

8.

Supply and demand for seafarers in Asia-Pacific economies, 1990

9.

Estimates of the supply of seafarers from four major Asian supply countries,1990-1995

10.

.Distribution of active Hong Kong seafarers, 1992

11.

Hong Kong active seafarers, 1988-1992

12.

Number of seamen on the register at sea and in the active and inactivereserve pool as at 31 December 1992

13.

Registered seafarers employed at sea under various flag states as at 31December 1992, Singapore

vii

LIST OF FIGURES

The Asia-Pacific region's share of world seaborne trade, 1970-1992

IIA.

Growth in the number of ships in Asia and the Pacific by region, 1985-1994

118.

Growth in ships' capacity in Asia and Pacific by region, 1985-1994

III.

Surplus seafarers, Asian economies, 1990-

IV.V. Distribution of members of All Japan Seamen's Union by trade, 1982-1995Number of foreign seafarers serving on board Japanese owned vessels,1993

VI.

Change in number and gross tonnage of Japanese-owned vessels, 1985-1994

Age profile of Hong Kong ratings, 1994

Number of seamen registered, employed at sea, and membership ofofficers' and seamen's unions, Singapore, 1988-1994

viii