Talent slump that maritime sector is suffering from due to trade slow down should change in the next five years, reports Drewry, a global consultancy company. While there is widespread concern about attracting new talent to the supply chain industry, it seems especially acute in the maritime sector. However, the slow growth of the size of the shipping fleet should reduce the shortage of officers over the next few years.
The shipping industry, which was badly hit in 2015, with the exception of oil tankers, saw weak demand coupled with falling commodity prices and oversupply of tonnage in most sectors. This resulted in a massive collapse in rates that was hitherto unseen since the 2008 global financial meltdown. Consequently, there have been growing concerns about the economy and the fall in freight earnings which has forced owners to refrain from contracting fresh orders.
Wage level increases have been at a minimum as poor freight earnings are resulting in massive cutting of costs. The wage costs of 2016 appear to be mirroring that of 2015 with some sectors showing a rise, such as LNG. The offshore sector, has seen a steady decline in wages due to falling oil prices and the uncertain economic situation.
However, Drewy senior analyst Nikhil Jain also reports that “With the growth in the size of the cargo carrying fleet tapering off, we expect the ongoing officer shortage to ease and for wage costs to increase modestly over the next five years”.
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Source: Drewry
