HR Supply Demand Emerging Issues

8/2/2019 HR Supply Demand Emerging Issues

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Human Resources – Supply and Demand:

Scenario in the Coming Years

Dr Ramanand

Faculty (General Management)

Indian Maritime University

[email protected]

Shipping India - Vision 2020April 10, 2010

A Seminar organised by;

Indian Maritime University&

The Institute of Chartered Shipbrokers

mailto:[email protected]

mailto:[email protected]



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Agenda Points

Importance of Ship and Seafarers Demand and Supply gap

Developments in Shipping Industry

Effects of Imbalance in Demand and

Supply Recruitment Issues: For & Against Sea

Job

Retention Issues

Recommended Actions for Industryand Governments

Initiatives by IMU



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Importance of Ships and Seafarers

Facts:• Growing demand for goods and services arebeing satisfied by shipping industry.

• Ships carries over 90% of world trade.

• Ships are Safe, secure, (cost, time anddelivery) efficient and environmentally-friendly.

• Shipping Industry is in a state of growthwith record numbers of new ships on order.

• Without Ships and Seafarers: one half of theworld would starve, the other half wouldfreeze.



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Population as a challenge to the Shipping World



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Demand and Supply Gap

2005 BIMCO/ISF estimate: officer shortfall at 10,000rising to 27,000 by 2015.

2008 Drewry estimate: officer shortfall at 34,000 against498,000 total, rising to 83,900 by 2012 assuming currentsupply levels and fleet growth at 17%.

Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning-2008, Drewry Publishing, London, 2008



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Developments in Shipping Industry

1.04 billion dwt* beginning of 2007 (8.6% annualgrowth) where 65.9% are controlled by developedcountries, 31.2% by developing countries and 2.9% byeconomies in transition.

Average age of world fleet is 12 years.

*) Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning-2008,Drewry Publishing, London, 2008

Development of World Fleet in numbers (2001-2007)

82,000

84,000

86,000

88,000

90,000

92,000

94,000

96,000

98,000

100,000

2001 2002 2003 2004 2005 2006 2007

N u m b e r o f s h i p s

Source: LRF



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Developments in Shipping Industry (contd..)

New entrants have been attracted to the market due to thepositive economic shipping cycle.

The growth of shipping has led to a shortage of seafarersdespite recent downturn of economy.

One industry estimate (Intermanager) suggests that 400,000new seafarers and 45,000 new officers will be needed.



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Effects of Imbalance in Demand and Supply

Number of fraudulent certificates reported to IMO

(2002-2007)

0

5

10

15

20

25

30

35

40

45

50

2002 2003 2004 2005 2006 2007

Longer working hours and less holidays.

Less experienced workforce. Fewer crew members on board.

Increase in salaries and age profile.

Potential increase in fraudulent qualifications.

Impact on quality of service due to increased work,

stress, fatigue.



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Recruitment Issues: For job at Sea


To see the world(18.4%)

I want a career at sea(22.4%)



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Recruitment Issues: Against job at Sea


Too much paperwork (34.1%)Fatigue (22.3%)Fear of being treated as a criminal

(19.7%)Onboard living conditions (18.3%)

Time spent away from family &friends (67.6%)Time spent away from children(29.7%)Difficulty keeping contact with

home (17.5%)



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Retention issues

Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning-

2008, Drewry Publishing, London, 2008



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Retention issues

Source: Precious Associates and D.M. Jupe Consulting, Annual Report Manning- 2008, Drewry Publishing, London, 2008



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Women at sea Estimated proportion of male to female seafarers

Femalesea farers (cargo

ships)

0.12%

Female

seafarers

(passenger

ships)

1.81%

Male seafarer

98.07%

Total estimated seafarers: 1,25 MillionSource: Based on f igures from Drew ry, ILO and ITF

Total estimated female

seafarers: 24,500



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Recommended actions Industry

Focus on creating competitive advantage by:• Quality hiring, developing, retaining and motivating.• Finding talent to replace who retire.• Invest in talent development.• Transforming the bureaucratic systems to flexible

processes.• Evolve from control based management to empowerment &

coaching.

Improve the image of Shipping• Transparency, industry exposure to students,

multiculturalism etc.

Create a sense of purpose in the processes. Clearly layout the corporate objective Explore possibilities to re-train professionals from

related industries (fishing, naval, etc.) Encourage women to work in seafaring positions



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Recommended actions

Governments To ensure the competitive advantage of

maritime industry, all stakeholders,including Governments, has to initiatesteps for continuation of

competitiveness. Steps can be:

• Establishment of training facilities.• Supporting campaigns to promote shipping as

a career.• Providing training incentives to industry.• Promoting seafaring for women.• Promoting training of unemployed persons.• Knowledge sharing by professionals.



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Initiatives by IMU

IMU is an affiliating University for institutions impartingeducation in the area of Shipping industry.

IMU facilitate and promote maritime studies, training,research and extension work with focus on emergingareas of studies like oceanography, maritime history,maritime laws, maritime security, search and rescue,

transportation of dangerous cargo, environmentalstudies and other related fields and also to achieveexcellence in these and connected fields and othermatters connected therewith.

Initiated the process of raising awareness of the issuewith government and organisations in the port andshipping industry.

Initiated the training and development facilities formaking available required number of seafarer.



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Initiatives by IMU (Contd..)

Courses offered by IMU, Associated Campusesand Affiliated Institutions:• B Sc (NS)• BE/ B Tech (Marine Engineering)• B Tech/ M Tech Naval Architecture & Ocean Engineering• B Sc (Maritime Studies)• MBA• E-MBA• Master in Maritime Law*• M Sc in Maritime Affairs*

• M Tech in Marine Engineering Technology*• PGD in Marine Engineering/ Logistics & Supply Chain/

Export & Import Management• Refresher/ certification courses



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Thank You

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HR Supply Demand Emerging Issues