The document discusses the shortage of seafarers in Europe. It examines this issue from an economic perspective, noting that standard economic principles of supply and demand would suggest manning costs should rise with a shortage, yet this has not consistently occurred. The document proposes this may be due to the global nature of the seafaring market and fluctuations within it. It recommends an integrated policy, employer, and maritime education and training approach is needed to make seafaring careers more economically attractive to young Europeans.
The document discusses the shortage of seafarers in Europe. It examines this issue from an economic perspective, noting that standard economic principles of supply and demand would suggest manning costs should rise with a shortage, yet this has not consistently occurred. The document proposes this may be due to the global nature of the seafaring market and fluctuations within it. It recommends an integrated policy, employer, and maritime education and training approach is needed to make seafaring careers more economically attractive to young Europeans.
The document discusses the shortage of seafarers in Europe. It examines this issue from an economic perspective, noting that standard economic principles of supply and demand would suggest manning costs should rise with a shortage, yet this has not consistently occurred. The document proposes this may be due to the global nature of the seafaring market and fluctuations within it. It recommends an integrated policy, employer, and maritime education and training approach is needed to make seafaring careers more economically attractive to young Europeans.
The document discusses the shortage of seafarers in Europe. It examines this issue from an economic perspective, noting that standard economic principles of supply and demand would suggest manning costs should rise with a shortage, yet this has not consistently occurred. The document proposes this may be due to the global nature of the seafaring market and fluctuations within it. It recommends an integrated policy, employer, and maritime education and training approach is needed to make seafaring careers more economically attractive to young Europeans.
• It might be a social problem • It might be a policy problem • It might be an economic problem • It might be a problem of all factors combined • But there might be a root cause • I will take a look at the economics Shortage of Seafarers: A Global Concern?
“Serious Shortage of Ship Officers in the
near future”, is a concern shared by many: • Industry: BIMCO, ISF, Intertanko, Lloyd’s List - Manning Conferences • Government and inter-government: Japan, the UK, IMO, OECD, EU • Research agencies and press: Drewry, IAMU, Lloyd’s List, Fairplay, Trade-winds, An Economic Explanation
• As international seafaring market is a
competitive market, the “law of demand and supply” should apply, which means that … • Any change of equilibrium of demand and supply shall lead to price changes • And a shortage of supply should lead to an increase in price A Paradox
• There has not been a corresponding increase in
the prices of seafaring supply • In some specific shipping sectors, the manning costs had even dropped between 1996 and 2005 • Compared to other operating costs, of eg. an Aframax tanker, the manning costs increased the least between 2002 and 2005 • Manning costs in some sectors went up in 2007, 2008, but in the long-run, they have been stable Explanations
• Open, global seafarer market reality vs.
local and closed market concept • Market fluctuation and technology development • Deficiencies with study methods • As long as sea career is economically unattractive to young Europeans, situation won’t change much Suggestions: An Integrated Approach
• Seafaring should be seen as “education” rather
than as “profession” • A policy is needed to really “validate” sea experience for a range of shore-based positions • MET should systematically provide “enabling programs” needed for the shore-based positions • An integrated approach: Policy-Employer- MET
