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Why do we need Human Capital Management in maritime?

FIona Macdonald by FIona Macdonald
April 29, 2024
in Free Content
0
Why do we need Human Capital Management in maritime?

An HCM strategy is important in any organisation, irrespective of the industry. However, it is especially necessary in the maritime industry, owing to the safety critical nature of the jobs to be done, a challenging working environment and often complex crew contracts and rotations.

Working at sea can be a hugely rewarding career, both financially and professionally. But it is typically a remote, and at times dangerous, career path that presents many challenges. Isolation from family,  contracts that often span months at a time, and a high-pressure working environment all have the potential to limit seagoing careers.

Recruitment: The challenge of finding the right talent.

The current picture of the seafarer landscape presents a myriad of challenges. While there are around 1.89 million seafarers serving the world merchant fleet, operating on more than 74,000 vessels1, the demand for experienced, well trained personnel outweighs the supply. According to Drewy’s 2023/24 forecast, seafarer labour shortages are at a 17-year high2.  A shortage of around 26,240 STCW certified officers exists and there’s an expectation that by 2026 an additional 89,510 officers will be needed to operate the world merchant fleet3. Part of the shortage is driven by the growth of the world fleet4. Technology may help seafarers to do their jobs more efficiently, but it certainly will not replace them.

On top of the growth of demand and increasingly short supply, the perception of the industry to the general public and young people makes recruiting skilled seafarers and shoreside staff a challenge.

An insufficient number of young people going to sea

One of the simple reasons why it’s hard to recruit talent is the reduction in the number of young people choosing maritime cadetships and embarking on officer careers in the merchant navy. In the UK alone, the number of officer cadets in training has slumped with new entrants 23% lower in 2023 than before the COVID-19 pandemic5.

One of the factors driving this is the insufficient number of cadet berths. According to the Nautical Institute’s (NI) Capt André LeGoubin, the inability for cadets to find a berth on a vessel is one of the greatest challenges the industry is facing6. During COVID-19, many cadets experienced difficulties in getting the required sea time following qualification and it’s a problem that continues to prevail7. Ships may be unable to accommodate cadets on board as accommodation is reduced to make space for cargo instead, or the officers onboard lack the capacity for supervision and mentoring8.

This makes it difficult for cadets to get the experience they need to complete their sea time, develop their skills, qualify with a Certificate of Competency (CoC) and ultimately enter the workforce as competent junior officers.

It has also become clear recently that an emerging middle class in traditional seafarer supply countries is making seafaring a less attractive option for job seekers today. Our research found that maritime employers are increasingly going to tier two and three cities as part of their recruitment strategy, where sometimes the level of science, technology engineering and mathematics (STEM) education does not provide the base required on which to easily build a mariner’s skillset.

For a more detailed understanding and exploration of the topics covered in this article, refer to our report, commissioned by Ocean Technologies Group. The Bottom Line: Why Human Capital Management is the future of HR and crewing. You can download the full report below. 

  1.  BIMCO, ICS (2021) Seafarer workforce report
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  2.  Drewry (Jun, 2023) Manning annual review and forecast 2023/24
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  3.  International Convention on Standards of Training, Certification and Watchkeeping for Seafarers
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  4.  BIMCO, ICS (2021) Seafarer workforce report
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  5.  Nautilus International (Mar, 2024) Worrying drop in UK cadets revealed by latest DfT data
    ↩︎
  6.  Seatrade Maritime News (Sep, 2022) Need for cadet berths one of the ‘greatest challenges’ facing shipping
    ↩︎
  7.  Nautilus (Jul, 2023) Cadets: please get in touch regarding sea time difficulties
    ↩︎
  8.  International Labour Organization (Apr, 2019) Recruitment and retention of seafarers and the promotion of opportunities for women seafarers
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