ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC UNITED NATIONS
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1 ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC UNITED NATIONS New York, 1995
2 I ST/ESCAP/1629 I The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. This document has been issued without fonnal editing.
3 EXECUTIVE SUMMARY The present study is focused on seafarers as an essential manpower resource for the shipping industry or the marine transport sector with special reference to the countries in the Asia-Pacific region. A number of countries in the region are major shipowning countries and many others have become increased their shipping fleets over the last two decades and count among the largest 25 shipowners in the world. The demand for seafarers to man the expanding fleets of each of these countries has correspondingly increased. Tl}e study highlights the rising demand for 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 the concern for the welfare, fair wages, and conditions of work of seafarers to the role seafarers play in maritime mishaps and pollution of the sea. It has been estimated that seafarers are directly or indirectly responsible for between 60 to 80 per cent of all shipping incidents. Other estimates 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 of the world shipping community by the results of the 1990 BIMCO-ISF continues to be a matter of grave concern. Insufficient maritime manpower has already. seriously affected shipping in western countries. There has been a long-term decline in the number of seafarers in developed maritime countries including Japan and also in a number of Asian economies such as Singapore, Hong Kong and the Republic of Korea. They are following the experience of western 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 of their 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 most countries maintain a policy of restricting employment on national registered ships for local seafarers. This is clearly not possible for those countries that are short of national seafarers to crew all the ships on the registry. There are cogent arguments for having a strong core of national maritime manpower incl~ding reasons of national security, efficiency, and not least of all, their valuable skills when they come ashore for employment in shipping and portrelated 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 employment opportunities for port masters, harbour pilots, hydrographers, marine surveyors, ship inspectors, 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
4 Encourage the countries concerned. There is also a great need for trained instructors, educators, and researchers in the maritime field. It is estimated that the region has increased its requirement of seafarers by some 132,000 over the period 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. Asia would therefore have to produce some 15,000 trained seafarers each year to satisfy the increase in demand from within the region. For Asia to continue to supply maritime labour to the rest of the world, the region would have to raise the rate of production perhaps as much again in order to meet the increased demand by foreign sl1ipowners. Attention is paid to the need to plan maritime manpower and the need for regional cooperation among countries in the Asia-Pacific region. It is noted that, in spite of theimportanc 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 the region and there is a need to create a central body to assess, make projections about futurerequireme 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 in developing countries supplying maritime manpower to foreign shipping. The call is made to national governments to give appropriate emphasis and demonstrate stronger commitment tothe task. However, these countries encounter serious shortage of funds and resources requiring contributions from foreign and local shipping enterprises. One suggestion is imposing a levy on ship operators for each seafarer hired. The report also offers the following recommendations to overcome the problems facingthe maritime manpower in the region: (a) (b) (c) 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. forward planning of maritime manpower both for seagoing and land-based employment on a national as well as on regional basis. Information generated from national maritime labour planning would necessarily be based on regular updates of data relating to seafarers, improved information ontraining institutions, and regular surveys on shipowners and other employers. Hold regular meetings among government agencies concerned with the administration of seafarers as well as maritime training institutions. Initiallythis could be undertaken under the umbrella of the Association of South East Asian Nations (ASEAN) and subsequently augmented to include the major employers of maritime labour as well as the significant suppliers of seafarers for international shipping. 11
5 (f) (d) (e) (g) Develop greater uniformity of training programmes with the region through standardizing the curriculwn, exchange of teaching manuals and other materials as well as instructors. Promote the use of the English language for communications since it is the accepted international language for commercial purposes. Undertake research to better understand the role of crewing agencies and ship management companies that have taken over the task of manning as well as the operation of ships from shipowners. Promote healthy relations among seafarers' unions and shipowners on the one hand 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 the orderly increase in wage rates and conditions of work for seafarers.. - III
6 MARITIME MANPOWER FOR THE SHIPPING INDUSTRY IN THE ASIA -PACIFIC REGION PREFACE... In 1994,world seabornetrade achieveda new record of 4.46 billion tons, havingincreased by 3.0 per cent in This compareswith an increaseof 2.6 per cent in The total servicesin ton-miles in global trade increasedin 1994 by 2.8 per cent, over 1993, to 19,500 billion. The world merchantfleet expandedby 8.5 million tons deadweightin It is estimatedthat in excessof 85 per cent of all internationaltrade is carried by sea. Without adequatemaritime transport,world trade would be severelyrestricted,and the impact on developing economieswould be serious. It is axiomatic therefore, that there must be an adequatesupplyof trained seafarersto work on the increasingnumber of shipsrequired to meetthe needsof expandingtrade. Simultaneouslywith this trade growt~, there is an growing requirement forimproved ship managementand safe navigation,to meet higher standardsof operation for environmentalprotection an.dthe safe transportand handling of hazardouscargoes. Better qualified ship officers and crews are required in greater numbers than everbefore, which is exacerbatingthe alreadyseriousshortageof trained personnel. The Asia-Pacific region is a major sourceof 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 exchangeremitted by these seafarersare significant social and economicfactors in the developingcountriesof theregion. With the increasingdemandfor more seafarerswho are bettertrained and higherqualified, Governments of the region need to focus on the requirements of theinternation shipping industry, if the economicbenefitsare to continue, or expand. In addition, increas~dtrade requiresmore ports, and increasesin the capacityofall the maritime service industries.theseall require experiencedmarinersto manageand operateefficiently, in the interestsof the trading community, and the economicwell-being of the developingcountries. This study focuses on the many issues which need to be addressedby Governmentsand the shipping industry itself if the region is to obtain the full benefitsof its economic growth through efficient maritime transport. It also highlights the need for providing sufficient training establishmentsof a high standard,and the advantages which can accrue to the countries through the employmentof their nationals in theinternation shipping industry. IV
7 INTRODUCTION FALLING 6.1 MARITIME MANPOWER FOR THE SHIPPING INDUSTRY IN THE ASIA-PACIFIC REGION CONTENTS 1. ~ 1.1 Major issues 1.2 Shortage of trained seafarers 1.3 Aims of the study 1.4 Terms of reference SEAFARING AND NATIONAL DEVELOPMENT New oppor1unities for employment of trained seafarers 2.2 Contribution of trained seafarers employed in shore positions 2.3 Direct financial benefits of employment on foreign vessels 2.4 Promotion of seafaring THE EXPANSION OF TRADE AND SHIPPING Expansion of world seaborne trade 3.2 Expansion of shipping in the Asia-Pacific region3.3 Promotion of fleet expansion DEMAND FOR ASIAN-PACIFIC SEAFARERS Demand for seafarers within the Asia-Pacific region 4.2 Advanced ship technology and reduction in crew complement 4.3 Demand for Asian seafarers by western shipping SUPPLY OF ASIAN SEAFARERS 16 Results of the BIMCq-ISF study5.2 Sources of supply of maritime manpower NUMBER OF SEAFARERS OF DEVELOPED ECONOMIES 25 Japan 6.2 Hong Kong 6.3 Singapore 6;4 Republic of Korea v
8 , 55 BI RESPONSES TO THE SHORTAGE OF MARITIME PERSONNEL Hiring foreign crew 7.2 Flagging out 7.3 Creating international shipping registers 7.4 Engaging crewing agencies or ship management companies 3435 TRAINING AND EDUCATION OF SEAFARERS Advanced maritime countries in the Asia-Pacific region 8.2 Economically emergent states 8.3 India and the Philippines: major sources of seafarers for. foreign employment 8.4 Countries aspiring to be suppliers of seafarers 8.5 Pacific island nations 8.6 The urgent need to provide proper training for ships' officers PLANNING MARITIME MANPOWER AND REGIONAL COOPERATION 46 Planning at the national level 9.2 Planning at the firm level 9.3 Cooperation within the seafaring industry 48 CHALLENGES FOR THE SEAFARING INDUSTRY Meeting the requirements of international maritime regulations 10.2 Upgrading maritime education and training 10.3 Reducing wastage rates of seafarers 10.4 Dealing with the problem of unemployment 10.5 Enhancing the role of seafarers' unions SUMMARY AND RECOMMENDATIONS 55 Recommendations for action 11.2 Concluding remarks 57 BLiOGRAPHY 59 vi
9 Trends LIST OF TABLES 1. Demographic and economic indicators of selected developing economies in the Asia-Pacific region, 1993 Merchant shipping fleets by country of registry, Asia-Pacific economies, 1985, 1990 and 1994 World seaborne trade by type of cargo, National and beneficially-owned shipping fleets of major Asia-Pacificeconomies, 31 December 1993 Number of ships on order by country of domicile and country of flag, Asia- Pacific countries, as at June 1995 A crew model based on the shipboard organization for a modern ship for crew complement for various ship types, Supply and demand for seafarers in Asia-Pacific economies, 1990 Estimates of the supply of seafarers from four major Asian supply countries, Distribution of active Hong Kong seafarers, 1992 Hong Kong active seafarers, Number of seamen on the register at sea and in the active and inactive reserve pool as at 31 December 1992 Registered seafarers employed at sea under various flag states as at 31 December 1992, Singapore vii
10 IIA III. VI. LIST OF FIGURES The Asia-Pacific region's share of world seaborne trade, Growth in the number of ships in Asia and the Pacific by region, Growth in ships' capacity in Asia and Pacific by region, Surplus seafarers, Asian economies, IV.V. Distribution of members of All Japan Seamen's Union by trade, Number of foreign seafarers serving on board Japanese owned vessels, 1993 Change in number and gross tonnage of Japanese-owned vessels, Age profile of Hong Kong ratings, 1994 Number of seamen registered, employed at sea, and membership ofofficers' and seamen's unions, Singapore, viii
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