Drewry: Shipping’s Recovery Not Enough to Lift Seafarer Wage Costs

Image Courtesy: Offshore and Home Trade Seamen's Welfare Trust

Ship manning costs are set to remain suppressed despite a recovery in cargo shipping markets, as shipowners and operators continue their financial struggles while officer shortfall recedes, shipping consultancy Drewry said.

The lack of confidence in the industry has seen wage increases almost at a standstill since 2009, and over the past year average officer rates have slid into reverse.

While there remains an overall shortfall in officer numbers, this has reduced markedly over the past year and the poor financial state of the industry has forced employers to limit labour costs to affordable levels.

“Ratings wage levels have fared little better and we estimate that average global rates have risen by around 1% between 2016 and 2017, which is consistent with the trend of the past few years,” Drewry said.

“Since the fall in oil prices the demand for officers in the offshore sector has fallen and this has been a major factor in the softening of overall seafarer wage costs,” Martin Dixon, Director of Research Products, said.

“While some sectors, such as LNG that require officers with particular experience, will continue to see above-average wage rises, we expect the downward pressure on manning costs to prevail with below inflation increases anticipated over the next five years.”

Dixon believes that the slowing fleet growth and a healthy supply of officers would eliminate the officer shortage over the next five years with a small surplus anticipated for 2021. However, experienced officers for service on specialist vessel types such as gas carriers “will continue to be in tight supply.”

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2018 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

The 27th World Gas Conference

The 27th World Gas Conference is the leading global industry event and is the definitive gathering of influential leaders, buyers and sellers, policy-makers and experts from around the world.

You will hear critical business insights and lively debates on the most topical issues facing the global gas industry today and in the future.

From 25-29 June 2018, Washington DC is expected to host 12,000 attendees, 500 speakers and 350 exhibitors representing, more than 600 companies from 100 countries.

Presented by the IGU, this is the largest and most high-profile gas event that is conducted by the industry for the industry.

Read More

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

BlueWeek2018

The BlueWeek2018 will be held on 28-29-30 May in Rotterdam, under the auspices of the Blue Forum…

read more >

Posidonia 2018

Posidonia, the international shipping exhibition, has long been established as one of the major calendar events…

read more >