JOBS FOR SEAFARERSJOBS FOR SEAFARERSJOBS FOR SEAFARERSJOBS FOR SEAFARERS----GLUT OR GLOOMGLUT OR GLOOMGLUT OR GLOOMGLUT OR GLOOM

BY: BY: BY: BY:

SanjeevSanjeevSanjeevSanjeev S.VakilS.VakilS.VakilS.Vakil, , , ,

Chief Executive Officer, Chief Executive Officer, Chief Executive Officer, Chief Executive Officer, 28282828thththth September 2013September 2013September 2013September 2013

Hindustan Institute of Maritime Training (HIMT)Hindustan Institute of Maritime Training (HIMT)Hindustan Institute of Maritime Training (HIMT)Hindustan Institute of Maritime Training (HIMT)

DISCLAIMER:

� The views presented in this presentation are of

my own and not the organization I represent.

Most of the information has been as feedback

from the students and Shipping fraternity from the students and Shipping fraternity

including various websites.

� Truth is Bitter

INTRODUCTION

� Post sea Training

was set up on –

28th September 1998

� Presea Training

campus was set up-

September 2003

JOBS FOR SEAFARERSJOBS FOR SEAFARERSJOBS FOR SEAFARERSJOBS FOR SEAFARERS----GLUT OR GLOOMGLUT OR GLOOMGLUT OR GLOOMGLUT OR GLOOM

• The growing shortage of jobs for seafarers has become an issue of global concern.

�Nostradamus Prediction for Shipping-???�Nostradamus Prediction for Shipping-???

• According to the BIMCO/ISF Manpower Update 2005 - shortage of 27,000 maritime officers worldwide was forecasted by the year 2015.

CHARACTERISTICS OF SHIPPING JOBS

� Characteristic of Shipping jobs is like a Sine

curve –peak and depression

� How long would be the Recession ???

Only answer - shipping will pick up next year.

CHARACTERISTIC OF SHIPPING JOBS

� According to the current scenario only one

statement is going around.

NO JOBS, NO JOBS, NO JOBS NO JOBS, NO JOBS, NO JOBS NO JOBS, NO JOBS, NO JOBS NO JOBS, NO JOBS, NO JOBS NO JOBS, NO JOBS, NO JOBS NO JOBS, NO JOBS, NO JOBS NO JOBS, NO JOBS, NO JOBS NO JOBS, NO JOBS, NO JOBS

ARE JOBS REALLY NOT AVAILABLE???

ARE JOBS REALLY NOT AVAILABLE??

� Yes, officially we do not have sufficient jobs.

� But there exist several questionable routes to

get jobs.

ALTERNATE ROUTE TO GET JOBS

Agents:Agents:Agents:Agents:----

Few agents place the aspirants on board at an exhobirant fee ranging from 2- 6 lakhs and that too without and that too without any assurance of being able to complete sea time.

� 201 RPS holders as on 23rd Sept 2013.

ALTERNATE ROUTE TO GET JOBS

Political Pressure:Political Pressure:Political Pressure:Political Pressure:----

There is a great pressure from the Ministry on

shipping companies requesting to place cadets

who have completedwho have completed

their Pre-sea training.

ALTERNATE ROUTE TO GET JOBS

Influence from senior Mariner:Influence from senior Mariner:Influence from senior Mariner:Influence from senior Mariner:----

Many of the senior Chief Engineers and

Masters have their relatives aspiring to join a

vessel and they “request” the companies which vessel and they “request” the companies which

they serve for

placement.

ALTERNATE ROUTE TO GET JOBS

Fear Factor:Fear Factor:Fear Factor:Fear Factor:----

�Many companies are

under pressure from

Unions and other such Unions and other such

Associations and hence

are bound to provide

the placement under

fear

JOBS BASIS ON MERIT JOBS BASIS ON MERIT JOBS BASIS ON MERIT JOBS BASIS ON MERIT

� Campus Interviews

� Till 2008 Shipping companies were in race to select the best requesting the first slot for selecting the cadets selecting the cadets

� 90% of the cadets were placed in 2nd year of their Pre sea Training Course.

� The abundance of entry level jobs in shipping has significantly diminished and the number of companies visiting the academy campuses have drastically reduced.

JOB CRUNCH

� If the ships are sailing why are there no jobs??

� Young cadets curse the shipping industry for it,

but no one tries to find out the reason and try

to work towards providing a solution. to work towards providing a solution.

REASONS FOR JOB CRUNCH

Advertisement:Advertisement:Advertisement:Advertisement:----

�Many institutes give misleading and false

advertisement stating 100% jobs will be

provided, high salary, Adventures at Sea etc to provided, high salary, Adventures at Sea etc to

attract young cadets.

REASONS FOR JOB CRUNCH

� Surplus of

training

Institutes:-

� 9 institutes in

139

80

100

120

140

160

� 9 institutes in

1998 have grown

to 139 institutes

in India.

� Branches allowed

9

0

20

40

60

80

1988 2013

INDIAN STATISTICS - AS ON 2ND SEPT 2013

COURSECOURSECOURSECOURSE NUMBERNUMBERNUMBERNUMBER OF INSTITUTES OF INSTITUTES OF INSTITUTES OF INSTITUTES ANNUAL INTAKEANNUAL INTAKEANNUAL INTAKEANNUAL INTAKE

DNS 37 3730

BSC / B.S ( Nautical ) 16 1375

B.E /B.TECH ( Marine) 39 2326B.E /B.TECH ( Marine) 39 2326

GME 23 1700

DME 8 284

GP Rating 35 4892

CCMC 12 1076

ETO 5 400

REASONS FOR JOB CRUNCH

� Number of vessels not increased proportionately to

Institutes.

� Few Maritime institutes today are more interested in

quantity than quality.

Owners moving to cheaper Nationalities- Angola, Ethopia…� Owners moving to cheaper Nationalities- Angola, Ethopia…

� Slowing down of the growth of World economy.

� Fluctuating market conditions in the industry.

� Indian delegation to STCW 2010 recommended

compulsory training berths on board ships, but this was

not accepted by others governments.

REASONS FOR JOB CRUNCH

Negative PropagandaNegative PropagandaNegative PropagandaNegative Propaganda---- Seafaring profession Seafaring profession Seafaring profession Seafaring profession

�Media –Poorly maintained Institutes- Degrees

not awarded

� Piracy Issues� Piracy Issues

� Criminalization of Seafarers

�Wages in Land based jobs –I.T sector in par

with Shipping

PROSPECT FOR FUTURE GLOBAL PROSPECT FOR FUTURE GLOBAL PROSPECT FOR FUTURE GLOBAL PROSPECT FOR FUTURE GLOBAL

DEMAND/SUPPLY OF SEAFARERSDEMAND/SUPPLY OF SEAFARERSDEMAND/SUPPLY OF SEAFARERSDEMAND/SUPPLY OF SEAFARERS

ESTIMATE ON THE DEMAND FOR SEAFARERS

� Calculation on the demand for seafarers in 2010, assuming empirically that a back-up ratio is 50 %, the demand for officers is 445,055 and for ratings 648,914.

Therefore the annual average growth rate in � Therefore the annual average growth rate in number of the world fleet between 2010 and 2020 was set at 0.7%.

� With this figure, the number of the world fleet and the demand for seafarers in 2020 was calculated.

� Officers 477,208 Ratings 695,795

PROSPECTS FOR SUPPLY OF SEAFARERS

FORECAST OF THE WORLD FLEET IN 2020

• It was estimated that the number of ships in the world commercial fleet would increase up to 38,197 in 2020 (an increase of 2,574 from the number in 2010).

As for the demand of seafarers in 2020 • As for the demand of seafarers in 2020 corresponding to the above number of ships, an additional 32,153 officers and 46,881 ratings would be necessary to fulfill the demand in 2020

PROFILES OF STUDENTS

Remedy to overcome Remedy to overcome Remedy to overcome Remedy to overcome

Job CrunchJob CrunchJob CrunchJob CrunchJob CrunchJob CrunchJob CrunchJob Crunch

GOVERNMENT INITIATIVES

� Government must take up the placement issue as a National program and buy training ships and provide training berths basis on merit.

� Government not to grant permission for new institutes till the existing backlog is clearedthe existing backlog is cleared

� Strict action to be taken by Institutes run unprofessionally

� Comprehensive Inspection program ( CIP)

� Initiatives like Section 406 & 407 of MS Act -15% of crew shall be trainee crew from Nautical /Engineering branch

� Coastal Tanker sea time reduced from 18 months to 15 months

MARITIME INSTITUTES RESPONSIBILITY

� Maritime Institutes should produce better Quality

officers and Ratings in comparison to other

countries.

� Discipline and Loyalty to be inculcated.� Discipline and Loyalty to be inculcated.

� Voluntarily Reduction of intake by the training

institutes for courses- DNS and other courses

which has churned out thousands of unemployed

youth.

� Join hands with other Institutes to plan the intake

SHIPPING COMPANY SUPPORT

� Shipping companies must come forward and employ trainees directly from campuses.

� Shipping companies must recognize trainees as future officers.as future officers.

� Todays Surplus of cadets and ratings would become tomorrows surplus of Officers.

� Long Waiting period of Officers would result in making them look for other companies.

CANDIDATES AND SEAFARERS RESPONSIBILITY

� Candidates need to develop right attitude to go to sea and provide loyal service to the company.

� Seafarers should become Mentors and role-models for the younger generation.Seafarers should become Mentors and role-models for the younger generation.

� Seafarers should encourage institutes who are committed to training and ban going to institutes who just sell certificates and are bringing down the name of the country.

FOR EVERY DARK NIGHT, THERE’S A

BRIGHTER DAY AHEAD….