The global shipping industry is facing a potentially serious shortage of officers by 2026 according to a five-year assessment contained in a new report from BIMCO and the International Chamber of Shipping. The trade group and union predicted that with continued industry growth there will be a need for nearly 90,000 officers by 2026 required to operate the world’s merchant fleet. The organizations are calling for a significant increase in recruiting and training both to address the current shortfall and the projected long-term need for officers.
The new Seafarer Workforce Report from BIMCO and the ICS explores both the current status of employment, issues such as turnover, and the aging of the seafarer population, and projections for the likely supply and demand situations over the next five years. It also looks at the progress that the once male-dominated shipping industry is making on issues including diversity. It is an update to the former Manpower Report that profiled the industry in 2015.
The report estimates that there are currently 1.89 million seafarers in the world merchant fleet, operating over 74,000 vessels. Although there has been a 10.8 percent increase in the supply of officers since 2015, the report indicates that there is currently a shortfall of 26,240 officers that will increase in the coming years. They believe that demand is currently outpacing supply possibly in part due to the need for more officers aboard each vessel.
Further, while the industry has addressed some current shortfalls by reducing the turnover rate in the past five years, bring it down two percentage points to six percent, it also points to a potential underlying concern of the aging of the officer popular. The report says that the number of years served at sea is increasing, while also noting that the average age of officers serving at the management and operational levels has increased since 2015.
“To meet the future demand for seafarers it is vital that the industry actively promotes careers at sea and enhances maritime education and training worldwide, with a focus on the diverse skills needed for a greener and more digitally connected industry,” said Guy Platten, Secretary General of the International Chamber of Shipping. “We will need to address the real concerns that we could see seafarers turning away from careers in shipping. We must analyze and respond to trends in seafarer retention, and continue regular monitoring of the global seafarer workforce.”
Among the categories that are already experiencing the most acute shortages, the report points to officers with technical experience combined with management skills. In the tanker and offshore sectors, they also report a shortage of management-level deck officers.
The latest statistics also show a positive trend in gender balance, with an estimated 24,059 women serving as seafarers, representing a 45.8 percent increase compared with 2015. The percentage of female certified seafarers is estimated to be 1.28 percent of the global seafarer workforce, and it appears that there has been a significant rise in the number of female STCW certified ratings compared to STCW certified female officers. Female ratings however are found predominantly in the cruise ship and passenger ferry sectors, but female officer numbers are spread more evenly across the sectors.
This new report echoes similar warnings released in June 2021 by the global shipping consultancy Drewry. Citing the pandemic and its impact on the attractiveness of careers at sea, the analysts forecasted as the industry continues to grow, by 2026 shipping will face its largest shortage of officers in more than a decade. They also foresaw implications for both hiring and future manning costs.
While Florida’s seaports experienced a significant loss of trade and revenue in 2020, a new report shows that the state’s seaports are poised for a recovery in 2021. Leading the recovery is the strong growth in cargo volumes that started in the second part of 2020 and the recent gradual restart of the cruise industry, which makes up an important part of the operations of Florida’s ports.
The value of waterborne trade was off more than $14 billion in 2020 at Florida’s 15 seaports according to the annual report from the Florida Seaports Transportation and Economic Development Council (FSTED). Required under Florida law, the report provides data on cargo and cruise activity as well as planned capital investments used to inform Florida policy and its lawmakers.
“We knew it was going to hit cruise — obviously with that being shut down — but cargo was obviously a little bit of a rude awakening, to see the impact on that,” said Michael Rubin, president and CEO of the Florida Ports Council. “The good news, again, is that cargo is back up, and it seems to be doing well.”
The report confirms that as with most port operations around the United States, that most of the declines came in the first part of the year due to the uncertainty around COVID-19. The recovery occurred in the fall, but still most of Florida’s ports experienced declines for the year.
In total the report says the value of trade decreased more than 16 percent in 2020, but three ports on the west coast and in the Panhandle of Florida reported gains in container volumes for the year. Those included Port Manatee, Port Tampa Bay, and Port Panama City. Breakbulk cargo also experienced an overall year-over-year increase, growing 8.8 percent to 7.8 million tons in 2020.
South and Central American and the Caribbean remained Florida’s top trade partner regions and accounted for a larger percentage of total trade in 2020 than in 2019. Japan topped China as Florida’s leading import trade partner country in 2020 for the second year in a row.
With COVID-19 bringing cruise sailings to a halt in 2020, Florida’s 158,992 cruise-related jobs, and $8.1 billion in economic activity were severely impacted. The cruise industry remained shut down for more than 15 months and has become the focus of an ongoing legal battle between the state of Florida and the US Centers for Disease Control prevention over the level of restrictions placed on the industry and the financial harm it is causing the state. Despite the current challenges to cruise operations in Florida, the report, however, concludes that the fundamentals of the cruise industry remain strong. They believe the combination of pent-up demand and widespread vaccinations will result in a full, long-term recovery for the industry.
“While most individual seaports experienced declines consistent with the overall trend for 2020, Florida’s 15 seaports are resilient, and we expect to see a near complete recovery in 2021,” said Michael Rubin, FSTED Program Administrator. “With $3.3 billion in capital improvements at Florida’s seaports identified over the next five years, we expect our ports to continue playing a leading role in job creation and economic growth.”
Of the $3.3 billion in seaport capital improvements identified over the next five years, 70.7 percent ($2.3 billion) is slated for the Atlantic coast seaports, with the remaining 29.4 percent ($972.8 million) dedicated for the Gulf Coast seaports. Among the projects slated are rehabilitation and repairs for berths, construction of new cruise and cargo terminals, and channel and harbor deepening efforts.
Florida’s governor also announced that he plans to devote $250 million from the federal stimulus monies to the ports. Florida’s Department of Transportation will select the ports and projects to receive the federal aid.
Operations at the Port of Houston’s two container terminals remain suspended for a second day after what the port authority is describing as a “hardware failure,” that has prevented the terminals from processing transactions. The port’s executive director, however, emphasized in a letter to customers and stakeholders that “this is not a cyber-attach on the Port Houston operating system.”
According to the port, the problem was discovered yesterday, July 27, before the normal opening time at 7:00 a.m. for the truck gates servicing both the Barbours Cut and Bayport container terminals. The opening was initially delayed but they were operational by 10:00 a.m. only to have the system again fail by noon taking both terminals offline.
“We experienced a major failure of the storage devices that support all of the applications used to operate” the container terminals Roger Guenther, the port’s executive director wrote to customers. He said after the first failure the port moved to a redundant set of storage devices. “Unfortunately, the redundant storage devices failed at 12:00 noon and the terminals have been unable to process any transactions since then.”
Ships that were already at the terminals have been able to continue working, but it has not been possible for the terminals to begin processing new vessels. The operations at the truck gates for both container terminals are also suspended. AIS data currently shows more than a dozen cargo ships waiting at the anchor at the entrance to the Houston Ship Channel, although it is unclear how many are being delayed by the current systems’ outage at the terminals.
“Frankly, the outlook for reopening today is not good,” Guenther advised customers this morning, July 28. He reported that the port staff working with contractors now have the necessary hardware but “configuration and restoration of all the components has been a slow process.”
The port plans to extend daily gate hours after operations resume and will also operate weekend gates if necessary to recoup on any backlogs that are developing during this period.
Combined the two terminals handle as much as two-thirds of all the container volume handled at the Gulf Coast ports. The Barbours Cut terminal has six berths with 6,000 feet of dock, a roll-on/roll-off platform, a LASH dock, 230 acres of paved marshaling area, and 255,000 square feet of warehouse space. The newer Bayport terminal will have a total of seven container berths with the capacity to handle 2.3 million TEUs on a complex which includes 376 acres of container yard and a 123-acre intermodal facility. The port highlighted that the terminal features electronic data interchange capabilities and a computerized inventory control system that tracks the status and location of individual containers.
The outage comes as the Port of Houston was like many ports reporting record volumes led by its container business. In June, more than 292,000 TEU were handled, making it the busiest June on record for containers at Port Houston. Year to date, container numbers are up 39 percent over 2020 while total tonnage at the port was up seven percent in June and two percent for all of 2021.
Guenther wrote to customers saying they recognized the impact of this situation and asked for their patience.
Crowley Maritime has won a giant $638 million contract to help the Maritime Administration with one of its top priorities – procuring newer ships for the Ready Reserve Force (RRF), the fleet of sealift vessels that MARAD maintains for quick activation in time of war.
The number of used vessels, the classes of vessel sought and the sellers have not yet been disclosed. However, European ro/ro operator Stena RoRo is one of Crowley’s partners on the project, and ro/ros make up the majority of the RRF fleet. Roll-on / roll-off vehicle carriers are of vital importance for sealift transportation of heavy armor, trucks and equipment.
The average age of ships in the existing RRF fleet is about 45 years, and readiness has been in decline. A 2019 activation test of the RRF’s ability to man and deploy found serious concerns about its ability to get under way; it barely cleared the required 80 percent success rate. U.S. Transportation Command, the RRF’s primary customer, found that the relatively low success rate “will challenge the immediate output” of the government-owned sealift fleet at the outset of a conflict.
Given these difficulties, fleet renewal has been a top priority for MARAD for years. In decades past, MARAD and DOD have sustained the RRF through the purchase of secondhand, primarily foreign-built tonnage, but MARAD has decided to bring in private-sector expertise to manage this round of acquisitions.
To carry out the purchasing contract, Crowley says that it will use a new, proprietary system to assess, research and make purchasing recommendations. Once the vessels are acquired, Crowley will oversee reflagging, reclassification, modification and maintenance as needed, bringing the ships into compliance with USCG, DOD and ABS standards. After the ships enter the RRF fleet, Crowley will maintain and operate the vessels on behalf of MARAD. The top-line figure for the contract includes the funds to buy the ships, according to a Crowley spokesperson.
“A successful [Vessel Acquisition Management] program is important to the U.S. as a maritime nation, the maritime industry and Crowley as we mutually invest in the strength of our nation,” said Mike Golonka, vice president of government ship management for Crowley Solutions. “We want to share our innovative, successful approach to vessel ownership and lifecycle engineering with the U.S. government.”
A consortium that includes ABS, CE Delft and Arcsilea, will carry out six studies on alternative fuels and decarbonization technologies for the European Maritime Safety Agency (EMSA).
This will be a four-year project, aiming to study key aspects of the decarbonization of shipping, including biofuels, ammonia, hydrogen, wind-assisted propulsion, air lubrication and other promising technologies.
The initiative is part of EMSA’s mission to provide technical assistance to the EU Commission and member states, in order to promote sustainable shipping and support the shift to low- and zero-carbon operations.
This will be a monumental study that will provide an unprecedented degree of guidance and clarity with regards to the maritime application of alternative fuels and energy-saving devices
bp and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping signed a partnership agreement for a long-term collaboration on the development of new alternative fuels and low carbon solutions for the shipping industry.
bp will second experts to work on relevant research and development projects in the Center’s portfolio and contribute to the development of methodologies and optimized pathways for safe and sustainable fuel solutions for shipping.
bp will also join the Center Advisory Board providing guidance for transition strategies and further development of the Center’s activities.
William Lin, bp’s executive vice president of regions, cities and solutions said:
This is a privileged opportunity to collaborate and advocate with key industry players to progress solutions at the pace and scale needed. When we work together, we can fast track development, de-risk investments and provide signals to the market that will speed up the decarbonization of the shipping industry
Furthermore, bp added that in order to accelerate the development of viable technologies a coordinated effort within applied research is needed across the entire supply chain.
Industry leaders play a critical role in ensuring that research is successfully matured to scalable solutions that match the needs of industry. At the same time, new legislation will be required to enable the transition towards decarbonization
The UK launched the competition for the construction of its new national flagship calling for bids from British shipbuilders for the project. Speaking at the National Flagship Engagement Day event in historic Greenwich, England, Prime Minister Boris Johnson dismissed his critics saying the vessel will help Britain to show off around the world.
Announced in May 2021 to serve as a global trade mission and British flagship the vessel was originally projected in 2019 to cost £120 million (approximately $167 million) the cost estimates have risen to between £200 and £250 million (approximately $270 and $350 million) turning the vessel into a political issue. Critics are calling the ship a distraction and waste of British taxpayers’ money with the Labour Party threatening to scrap the project while the Prime Minister says it will be a symbol of national pride and will be used to attract foreign investment.
The competition for the construction bids officially opened today, July 28, and is scheduled to run till October. The bidding and construction are being overseen by the Ministry of Defense, which issued the formal invitation to tender. The government is positioning the ship as a military vessel to get around rules requiring that the bidding be opened to the international shipbuilding community. The Ministry of Defense says that the vessel is officially part of the navy and will be crewed by 80 Royal Navy sailors.
“Our new National Flagship will be the ‘jewel in the crown’ of our upcoming National Shipbuilding Strategy,” said Defense Secretary Ben Wallace speaking today at the event in Greenwich. “Now, that may sound whimsical or an exaggeration, but I want to be clear – this is not just a flag ship but a flagship project to showcase to the country and the world just what British shipbuilding is capable of – innovative design, competitive build, quality service.”
Wallace said that he wants the vessel to be at the vanguard of the 21st century shipping technology including being as green as possible. He, however, also sought to set the record straight on the vessel addressing media reports of cost overruns of 25 percent or more on the project even before a contract is selected.
“Subject to working through bids, competition, and technology, I aim to commission the ship for between £200 and £250 million on a firm price,” Wallace said in his address. “The competition will run until the end of October. I hope to announce the winners in December. To begin construction in a British shipyard as early as next year and have a ship in the water by 2024 or 2025. That’s an ambitious timescale, but this is an ambitious project – the chance to break the mold and break some records to get things done in the national interest.”
The new flagship is being billed as a successor to Britain’s famed Royal Yacht Britannia that served as the home of HM Queen Elizabeth II from its commissioning in 1954 until its retirement in 1997. During that time, it also served as a floating embassy, conducted humanitarian missions in the name of the Queen, and also served as a trade mission. Despite speculation in the British media that the new vessel would be named Duke of Edinburgh or Prince Philip in honor of the former navy commander and consort of the Queen, unofficial reports from the royal staff suggest that Britain’s royal family is “distancing themselves from the project,” according to London’s Sunday Times.
The inclusion of shipping in the ETS would not pose any technical barrier to a global emissions reduction measure, but instead, it may accelerate IMO discussions, according to a new report by Oeko Institute along with European green group T&E.
It can be concluded that the inclusion of shipping in the EU ETS would not cause any technical barriers for the elaboration and implementation of GHG reduction policies at global level. On a political level, since the EU policy is likely to be implemented earlier than any similar MBM at global level, it may both accelerate discussions and agreements on the design of such a MBM at the IMO – as was the case with emission control areas or the IMO DCS,
The European Sea Ports Organisation (ESPO) welcomes the new “Fit for 55”-proposals as an important first step towards reaching the European Green Deal ambition and the 2030 and 2050 goals enshrined in the EU Climate Law.
The package includes different proposals regarding ports:
A proposal for a Alternative Fuels Infrastructure Regulation (AFIR);
A new proposal to increase the use of alternative fuels by shipping (FuelEU Maritime);
The extension of the Emissions Trading System to shipping (EU ETS);
Amendments to the Renewable Energy Directive (REDIII), and an update of the Energy Taxation Directive.
The fit for 55-proposals are an important first step: all ingredients are there to deliver the green deal and climate goals. We will now examine the proposals in depth and identify where the port pillar of this green deal architecture should be optimised. For Europe’s ports it is essential to ultimately achieve a policy that is effective in reducing emissions, is coherent, keeps an eye on the competitiveness of Europe’s port sector, is future-proof and does not create stranded assets or additional administrative burden for ports. It should take the diversity of the European port and maritime sector into due consideration
believes ESPO’s Secretary General Isabelle Ryckbost.
The year 2021 marks a decade since IMO adopted the first set of mandatory energy efficiency measures for ships, on 15 July 2011, as part of MARPOL. As such, IMO shared an infographic providing a timeline of actions to cut GHG emissions from shipping.
The pace of regulatory work to address GHG emissions from shipping has continued within the framework of the IMO Initial Strategy for reducing GHG emissions from shipping, and most recently with the adoption of further, key short-term measures aimed at cutting the carbon intensity of all ships – new build and existing ships – by at least 40% by 2030, compared to the 2008 baseline, in line with the initial strategy ambitions,
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