It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Thursday, January 25, 2024
WAR IS ECOCIDE
Video: Ukrainian Drones Hit Russian Refinery at Port of Tuapse
Just days after a suspected drone strike disabled an LNG terminal at Ust-Luga, Russia, Ukrainian forces hit a Russian refinery at the Black Sea port of Tuapse. The port is hundreds of miles behind the front lines, and the attack reflects the efficacy of Ukraine's new long-range suicide drones.
Bystander video showed a column of flame and smoke ascending from the center of the complex, near a distillation column. The fire was extinguished within hours, local officials said. The extent of the damage and its effects on refinery operations are not yet known.
Russian media outlets have also released bystander videos of what appears to be a drone aircraft buzzing towards the refinery complex before impact, confirming Ukrainian claims.
The Rosneft-owned refinery is part of a vast tank farm complex extending inland from the seaport, and it is the only Russian facility of its kind on the Black Sea coast. No impacts on the waterside infrastructure or the storage tanks were reported.
The effects on global energy markets appear to be slight. According to TankerTrackers.com, Tuapse only exports about 100,000 barrels per day of petroleum - a relatively small fraction of total Russian output, which is measured in millions of barrels per day.
In addition to the attacks at Ust-Luga and Tuapse, petroleum facilities have also been hit recently in St. Petersburg, Tambov and Bryansk. The string of attacks may be intended to blunt a widely-anticipated new Russian offensive.
A dredger has gone down at its berth at the port of Mykolaiv, Ukraine, spilling petroleum into the harbor. Environmental monitoring is under way, according to local authorities.
Ukraine's State Environmental Inspectorate reports that the dredger Ginger went down at the port of Mykolaiv on January 15. The cause was not reported, but photos and water quality sampling showed evidence of worsening pollution from the wreck. As of January 19, petroleum concentration in the water was about 15 times normal limits.
The inspectorate has called for pollution-abatement measures. So far, a cleanup has not begun; the sunken vessel joins a long list of other recovery projects in the war-torn country.
Ginger was a 1966-built hopper dredger of 1,700 dwt in size. It was also known as the Severodvinskiy, and was recently owned by a Canada-based firm.
Ukraine May Have Sunk Another Russian Warship
Ukraine has used one-way attack drones to target Russian warships (SBU file image)
A Ukrainian partisan group reports that Ukraine's Navy sank a small Russian warship in December, without acknowledgement from either Moscow or Kyiv.
Satellite imagery appears to confirm that a small surface combatant or patrol boat has sunk alongside a pier in Sevastopol's inner harbor.
Based on images taken before the sinking, the vessel appears to measure 180 feet long and has gray topsides. This would be consistent with a Project 1241 Molniya missile corvette (NATO reporting name Tarantul), of which several are in service in the Black Sea Fleet.
Open-source analysts and Ukrainian media have identified the vessel as a Project 205P patrol boat (NATO reporting name Stenka), a much smaller patrol vessel with a similar Soviet name.
The timing of the satellite imagery suggests that the vessel sank in December. Ukrainian media outlets have reported it as a likely hit from a drone-boat strike a few weeks back; Russia has not acknowledged the loss, and the Ukrainian military does not always claim responsibility for successful attacks.
Though challenged by equipment shortages on the battlefield ashore, Ukraine has had considerable success attacking Russia's Black Sea Fleet, both in port and under way. Among many other strikes, in September it destroyed a Kilo-class submarine and a tank landing ship in Sevastopol, then hit the fleet headquarters building with a cruise missile. In October it hit a patrol ship off the coast of Sevastopol; in November it destroyed two small landing ships and a brand new corvette; and in December it destroyed another landing ship, setting off large secondary explosions. In its highest-profile attack, in 2022 Ukraine sank the fleet's flagship, the cruiser Moskva.
Red Sea Crisis is Disrupting the Electric-Car Industry
The Tesla Berlin-Brandenburg plant (Michael Wolf Penig / CC BY SA 3.0)
Automotive giants Tesla and Volvo have announced pauses to the production of their electric vehicles (EVs) in Europe. Electric vehicles are seeing record sales and demand worldwide, but a lack of parts means that factories cannot sustain their production.
The reasons for this are complex. Parts are taking longer to deliver as attacks by Houthi rebels force ships to avoid the Red Sea. And there are also issues around the monopoly that Chinese factories hold on many EV components, including crucial lithium batteries.
These factors have made it harder (and more expensive) to move parts across the globe to support EV production in Europe.
Modern global supply chains are tightly orchestrated. Moving goods to factories (and away from them to customers) is heavily demand-driven. Forecasting this demand has become a huge industry, valued at over US$27 billion.
But even with all this intelligence, political tensions, pandemics and even stuck ships can turn this industry on its head overnight. This is particularly the case where the supply side is constrained, as it is with EV batteries from China.
In 2021, a container ship called the Ever Given ran aground in the Suez Canal, blocking this vital shipping route from the Far East to Europe for the best part of a week. The blockage prevented goods from passing through the canal, so had the knock-on effect of raising container shipping prices.
Even though the Suez Canal has been open for two years, the recent attacks on commercial ships in the Red Sea have caused shipping companies to divert their ships to less direct routes – adding significant costs and time.
What does this mean for consumers and the planet? And are there ways for EV manufacturers to circumvent these risks?
Supply chains are fickle things
If manufacturers cannot produce due to shortages, then factories that make a single product such as Tesla’s gigafactory near Berlin (which produces the best-selling Model Y SUV) have one option – to idle the lines. Hourly-paid workers are sent home and where possible, salaried staff will continue in other roles such as safety checking and testing.
Tesla and Volvo have other factories and other product lines that can keep running. But even finished vehicles traveling from plants in China for sale in Europe are affected by the need to avoid the Red Sea. Vehicle manufacturer, Geely, which also produces Volvo vehicles in China, has warned of delays to European consumers expecting their new cars in early 2024.
Delays are not the only issue associated with shipping parts and vehicles around Africa to avoid the Red Sea. The 3,000 extra miles traveled by ships means they burn more fuel – a lot more fuel.
Peter Sand, a shipping analyst at ocean and air freight analytics platform, Xeneta, has estimated conservatively that each ship taking this route produces 2,700 extra tons of CO?. If the international shipping industry were a country, it would already be among the world’s top carbon-emitting nations. And greenhouse gas emissions from ships are projected to increase by up to 50% by 2050.
EVs are undoubtedly better for the environment than their combustion engine counterparts. However, when supply is constrained, buyers often have little choice but to delay making the switch. Sales figures from 2023 show that private buyers still did not purchase as many EVs in the historically buoyant month of September as they did in the year before due to uncertainty in the market.
Fleet demand remains strong. But the market can only grow as fast as manufacturers can make cars. And pausing production is not going to help the transition.
Can manufacturers square this circle?
Clearly, these pinch points in the global supply chain have huge repercussions for manufacturers and consumers. Tesla’s factory in Germany is tight-lipped about actual production figures, but reports claim it makes around 4,000 units per week. Each car makes around US$8,000 profit, so this shut down could, in raw terms, lead to a loss of US$64 million in profit.
How do they prevent this? Supply chains do have some element of elasticity, but supply chain managers are always keen to reduce the potential of something known as the “bullwhip effect”. This is where marked differences in order quantities lead to even more shortages down the line. Managing expectations and reassuring buyers will thus help to smooth any issues with supply.
Making supply chains more resilient is also a huge area of research. Rerouting ships to prevent lost components is an example of this concept being put into practice.
If the parts were lost to rebel forces or pirates by taking the Red Sea route, then the revenue loss would be even larger. So although diverting routes is worse for the planet and arguably bad press, it would seem to be the lesser of two evils.
Multinational automotive manufacturer Stellantis has announced that it is instead bypassing the Red Sea by air-freighting parts to its EU factories. But, while this is faster than shipping parts around Africa, it’s not good for either CO? emissions or cost.
Stellantis is relying on airfreight to cope with temporary supply disruptions. Summit Art Creations/Shutterstock
Keeping the global economy running
To reduce the disruptive potential of geopolitical tensions, Tesla and other automakers are attempting to produce their product closer to the consumer. The strategy is to put factories on each continent or geographical area where their products are sold.
However, as China still produces many of the core EV parts, manufacturers will have to invest heavily in their suppliers and put them closer to their factories.
Ultimately, this will require investment in skills and more factories. But with dropping profit margins, Chinese manufacturing dominance and inflationary pressures, it will continue to be a headache to implement.
Tom Stacey is a Senior Lecturer in Operations and Supply Chain Management at Anglia Ruskin University.
Ttwo years after the invasion of Ukraine prompted a big shakeup in Europe's energy supplies, the evolving security situation in the Red Sea is reshaping trade flows once again.
According to tanker trade tracker Kepler, multiple EU-bound tankers are rerouting around the southern tip of Africa in order to avoid the risk of Houthi attacks off Yemen.
“European countries are seen as complicit in the Israel-Hamas war. They would rather go around the Cape of Good Hope versus taking a chance through the Red Sea," he told CNBC.
Since tankers move slowly, this increases the delivery timetable for oil flows from the Middle East to Europe by a matter of weeks, and increases the time required for the return journey by just as much. This reduces tanker availability, increases delivery cost, and makes other suppliers in the Atlantic basin more competitive (for some commodities).
European customers are turning to American and Brazilian refiners to source diesel more often, according to CNBC, and reducing dependence on longtime suppliers located east of Suez.
The disruption is a new wrinkle for commodity traders and refiners serving the EU market. Until 2022, Europe sourced 20 percent of its oil from Russia, along with much of its imported diesel. EU governments decided to phase out those supplies after the invasion of Ukraine, sending a signal of opposition and forcing Russian producers to find new markets. To substitute those lost Russian barrels, Europe turned to other suppliers in the Mideast and (for refined products) India. With access to the Red Sea now less certain, these suppliers are less accessible and affordable, forcing another adjustment in EU sourcing.
China and Russia Get a Free Pass Through Houthis' Red Sea Blockade
Houthi servicemembers on patrol in the Red Sea (Houthi Military Media file image)
The elevated security risk in the Red Sea has been bad news for almost every shipowner, but some parties may end up benefiting - or at minimum, may be able to continue their business as usual.
American and Israeli shipping interests are at risk of attack, but Houthi leaders have explicitly said that Russian and Chinese vessels will be guaranteed safe passage. “Our goal is to raise the economic costs for [Israel],” Houthi spokesman Muhammad al-Buheiti told Izvestia last week. “As for all other countries, including Russia and China, their shipping in the region is not threatened."
Chinese shipping interests appear to be aware of this exception. Many China-linked ships have been broadcasting "All Chinese" or "Chinese Ship" as their AIS "destination" during transits through the Red Sea. Likewise, some ships with Russian cargoes have been broadcasting some variant of "Vessel No Contact Israel."
The proportion of Chinese shipping in Red Sea container traffic has been rising dramatically, according to Lloyd's List, though total container traffic has plummeted). One brand new Chinese carrier even appears to specialize in Red Sea transits. Recently-launched Sea Legend Shipping operates a fleet of seven Panamax boxships that run between China and Turkey, calling at ports in the Gulf of Aden and the Red Sea on the way out and back. It even calls periodically in Yemen (Aden) and serves the Houthi-controlled port of Hodeidah through a transshipment connection. (Lloyd's List first identified Sea Legend's niche service.)
Sea Legend has benefited from naval escort protection from China's PLA Navy, the company says - a relatively rare advantage. The PLA Navy has been conspicuously absent from the allied policing operation off Yemen, though it has warships in the area and a large base in nearby Djibouti. Sea Legend's site highlights that in "the style of a great country, flying the five-star red flag, the Chinese navy escorts" its vessels. It also lists the scheduled transit times for PLA-protected convoys.
The Red Sea-Suez route is by far the fastest option for ocean freight between the Far East and the Mediterranean. The alternative is a trip around the southern tip of Africa, which adds about 10 days onto a typical container ship voyage, raising cost and imposing delays on customers. Vessels that can continue to use the Suez Canal may have a competitive advantage relative to their peers.
The comparative safety for Russian and Chinese vessels may have political roots. Russia's government has railed against the UK-U.S. security operation in the Red Sea and against the Israeli operation in Gaza; both of these positions align with the Houthis' demands. The Russian Foreign Ministry has called the anti-Houthi naval mission "a violation of Article 2 of the UN Charter" and a risk to regional stability.
For its part, China has called for a ceasefire in Gaza and an Israeli-Palestinian peace conference, aligning with Houthi demands. It also has a close relationship with the Houthis' Iranian sponsors, according to the White House. “China has influence over Tehran, and they have the ability to have conversations with Iranian leaders [about the Houthis] that we can’t," National Security Council spokesman John Kirby told Politico on Tuesday.
USCG Works With Good Samaritan to Rescue Four Fishermen off Kodiak
Jayhawk SAR helicopter at Air Station Kodiak, 2021 (USCG file image)
On Sunday, the U.S. Coast Guard worked alongside a good samaritan vessel to rescue four fishermen from the fishing vessel Alaska Rose, which had capsized just off Chiniak Island, Alaska.
At about 1630 hours, Coast Guard Sector Anchorage received a mayday call from the crew of the Alaska Rose, who reported that their vessel were taking on water. The sector's watchstanders broadcast a request for assistance from nearby vessels and dispatched a Jayhawk rescue helicopter from Air Station Kodiak.
At about 1656, less than half an hour after the mayday call, the aircrew arrived on scene. Conditions were relatively rough, with waves of eight feet and winds of about 30 knots. The aircrew found that the Alaska Rose had capsized and the crew had gone into the water. One person remained on the hull of the capsized vessel, and they hoisted the survivor aboard and flew back to Air Station Kodiak.
Three other crewmembers were in the water, and a good samaritan vessel - the Kylia - retrieved all three safely and transferred them back to Kodiak. Water temperatures near Kodiak Island currently average about 40 degrees, posing a risk to survival in the event of long-duration immersion.
“I wholeheartedly thank the good Samaritans involved,” said Lt. Madeline Romito, Sector Anchorage command duty officer. “The quick response between them and the helicopter crew played a major role in the positive outcome of this case.”
The Alaska Rose is believed to have gone down after the rescue, according to local KMXT.
Pro-Palestinian Activists Blockade ZIM Ship at Port of Melbourne
Pro-Palestinian activists have been protesting Israeli ships at Australia's seaports for months, and the blockades are beginning to have an operational impact. Protesters have obstructed the entrance to a terminal at the Port of Melbourne for more than three days, attempting to interfere with cargo operations on a ZIM container ship.
AIS data shows that two unrelated container ships are moored alongside at the terminal, and the ZIM Ganges is waiting at anchor in Melbourne's harbor.
The protesters have attempted to physically prevent vehicles and port employees from entering the terminal complex. One video from the scene showed protesters shoving a man who tried to pass through the gate; others show scuffles with police.
"Most of our people didn't feel safe because the police were telling them they couldn't guarantee their safety," VICT container terminal CEO Bruno Porcheitto told ABC.
Countermeasures taken by the local police have had little impact so far, activists say. Officers used pepper spray and arrested one woman on an assault charge over the weekend, but the blockade continued.
ZIM is Israeli-controlled and partly owned by the Israeli state. In time of war, it places a priority on government cargoes. This has made it a target for pro-Palestinian activists who wish to protest the ongoing Israeli operation in Gaza.
"The action has completely blocked the port . . . to send a strong message to the government that Melbournians are not happy with ZIM ships being loaded," protest organizer Mohammed Helmy told Middle East Eye.
It is not the first time that Israeli ships have had an unfriendly welcome in Australia. Last year, protesters showed up multiple times to meet Israeli vessels in Melbourne, Sydney, and Fremantle, in the country's far southwest.
New Zealand Prosecutes RoRo Operator for Blackout Due to Maintenance Issue
RoRo ferry Kaitaki blacked out in 2023 nearly running on to the rocks due to a maintenance failure investigators reported
New Zealand regulators have taken the unusual step of filing charges against the operator of a large inter-island ferry after the vessel suffered a power failure a year ago. The charges now in a New Zealand court came after an extensive investigation by the regulator Maritime New Zealand as well as a critical report from the country’s Transport Accident Investigation Commission (TAIC) which called on Maritime New Zealand to address critical safety issues.
In a preliminary report into the incident aboard the RoRo ferry Kaitaki, TAIC found the operator KiwiRail was not following the manufacturer’s advice or even its own protocols for maintenance. They reported that the operator had installed a 13-year-old rubber expansion joint aboard the ferry in 2018, and by the time it failed in 2023, it was 18 years old. It was both beyond the manufacturer’s recommended age and overdue for replacement under the operator’s procedures.
"The investigation took 12 months; it involved reviewing the operator’s organizational information relevant to processes and procedures connected to safety and maintenance management, undertaking interviews, and examining the Kaitaki after the incident occurred," said Maritime NZ Director, Kirstie Hewlett. "Material was then comprehensively reviewed before the decision was made to prosecute."
The incident began late on the afternoon of January 28, 2023, with 800 passengers and 80 crew aboard the ferry as it was approaching Wellington, New Zealand. KiwiRail promotes that it is “the original Cook Strait ferry,” with multiple sailings each day between the North Island and South Island (Wellington and Picton) carrying passengers, cars, trucks, and rail cars. The trip normally takes about 3.5 hours, but during the crossing, the vessel can be exposed to strong weather conditions. The 2023 trip was no exception with winds of 30 to 40 knots.
The ferry was built in 1995 in the Netherlands and operated till 2001 in Ireland as the Isle of Innisfree before a brief charter to P&O Ferries. KiwiRail first took the vessel on charter in 2005 and acquired it in 2017. The ship is 22,365 gross tons with a capacity for 1,650 passengers as well as 600 cars.
Failed rubber expansion joint was 18 years old and overdue for replacement (TAIC)
On the day of the incident, she departed Picton at 2:00 pm and around 5:00 pm near Sinclair Head as she was approaching Wellington, the vessel blacked out. The crew immediately declared a mayday handing out lifejackets to the passengers. The vessel was drifting toward the rocks, but the crew was able to anchor the vessel. It took about an hour to restore power and the ship limped into Wellington escorted by a tug and docking around 9:00 pm.
KiwiRail confirmed in the days after the incident that there had been a leak in the vessel’s engine cooling system that caused a loss of pressure and automatic sensors shut down all four engines to prevent overheating. The company said repairs were being main and all the components checked. Lloyds Register as the class society also inspected the vessel before it returned to service.
TAIC in its preliminary report found that a rubber expansion joint had ruptured and most of the cooling water drained out before the crew could stop the leak. A review of the ship’s propulsion systems showed there were 12 rubber expansion joints. The one that failed they found had been manufactured in 2005 and sat on a shelf till it was installed in 2018. Two others in use aboard the ship were found to be 13 years old and had also been in use since 2018.
TAIC said the company had failed to track the parts and follow recommendations. They said closer attention was required because it is common for manufactured rubber components to become more susceptible to cracking, delamination, or to become softer or “gummy” as they age.
The company faces a fine of up to approximately US$900,000 if found guilty. News of the charges however has also restarted a debate over the need to replace the ferries. Union leaders and politicians are saying the ferry is too old and like an old car, in time they just do not run anymore.
Crew Rescued as Bulkers Collide off Shanghai
Omega was taking on water after a collision with another bulker off Shanghai (CCTV)
Two foreign-flagged bulkers operating near the Yangtze River collided early on Tuesday, January 23, during storms in the area. Chinese and Turkish officials are reported that the crew was safely evacuated from a damaged Turkish-owned vessel while both vessels were being anchored.
The Turkish-owned bulker Omega (48,821 dwt) registered in the Marshall Islands was reported to be inbound to China with a cargo of iron ore after transiting the Suez Canal last month. The vessel had a crew of 21 aboard, including 16 Turks, and was reportedly struck midship by the Mirabella (46,645 dwt) which was inbound to China with a cargo of steel products. The trip was coming from the UAE.
Weather forecasters were predicting winds of over 30 mph and seas running above 15 feet. The bow of the Mirabella was reportedly damaged in the collision while the Omega began taking on water in one of its cargo holds. The crew of the Omega was ordered into the ship’s lifeboat and later taken aboard the Mirabella.
Salvage team members were airlifted to the ship to stop it from drifting (CCTV)
Chinese officials are reporting that rescue boats and helicopters were dispatched along with a salvage tug. When they reached the scene, they reported the Omega was drifting and in danger of sinking. The decision was made to airlift two members of the salvage team to the vessel and later Tuesday they were able to drop both bow anchors to stop the drifting. They are reporting the vessel was stable at the moment and being observed.
The salvage team was escorting the Mirabella to a safe anchorage. The Mirabella is registered in the Cook Islands and managed by a company in Lebanon.
Worker Seriously Injured in Accident at Fincantieri Shipyard in Italy
Scaffolding alongside Mein Schiff Relax and a hoist for material collapsed hospitalizing one worker (Vigili del Fuoco)
One worker at the Fincantieri shipyard in Monfalcone, Italy was seriously injured in an accident at the yard on Friday, January 19. Trade unions representing the shipyard workers called for an immediate strike as they sought to raise awareness of safety issues.
Emergency services from Monfalcone in the Trieste region of eastern Italy responded to emergency calls Friday morning. Scaffolding and an enclosed hoist used to lift material to the cruise ship Mein Schiff Relax currently under construction in the shipyard had collapsed.
One worker, a 23-year-old employee of a contractor working on the cruise ship construction project, was discovered pinned under the twisted pile of metal. The fire brigade worked for 30 minutes to remove the debris, including using a crane to lift sections of the collapsed scaffolding that was on top of the man. The man, who is reported to be a citizen of Bangladesh, suffered crushing injuries to his head and chest trauma and was removed to the hospital. Media reports said he was in guarded condition but that his life was not in danger.
Scaffolding alongside side the cruise ship under construction collapsed
Reports were unclear if the man was on the scaffolding or more likely under it preparing to board the cruise ship when the collapse happened. The contractor was reportedly trying to account for all its employees to ensure that no other individuals had been caught in the collapse. The Italian fire brigade also brought in divers who made several searches to ensure that no one was in the water while additional searchers were also going on the dock in the area around the ship.
The Italian authorities ordered the area around the accident sealed off until a full investigation could be performed. The Trieste area is exposed to strong winter winds known as boras and according to the media reports, the strong winds had been flowing since Thursday night. Wind speeds were reported to be reaching approximately 60 mph. The scaffolding was to be alongside the ship with some reports saying it was at the deck 16 level.
A crane needed to be used to free the worker trapped under collapsed scaffolding
“Once again, the victim of the accident is a worker from a contracting company,” the metalworkers' trade unions said in a statement. “It is not acceptable to risk your life for work. And in this context, contract workers are the most exposed, and most at risk.”
Media reports indicated that the employment practices of contractors working at the Monfalcone shipyard have been the subject of investigations since 2018. Among the issues are reports of low wages and poor training.
The trade unions called for an immediate one-day work stoppage to raise awareness of the safety issues. They are demanding that contracting companies working at the yard must be responsible and demonstrate they can ensure the safety of their workers as required by law. They are also calling for adequate safety training while demanding that Fincantieri immediately replace any contracting company defaulting on these responsibilities and deficient in the required safety protocols.
German Rail Strike Puts New Pressure on European Shippers
The conductors' union for German rail line Deutsche Bahn has gone on strike, shutting down cargo service for customers on large sections of the company's network.
Union GDL is striking over pay and working hours, seeking a lighter workload. It went on strike earlier this year for a three-day period, and is now planning a six-day walkout in order to pressure DB to negotiate.
The strike officially begins Wednesday, but Deutsche Bahn's DB Cargo division reports that a number of freight trains have already shut down as of Tuesday evening. These trains have not reached their destinations, affecting cargo for customers in the Alps, Poland, Scandinavia and - crucially - the large seaports in Holland and Belgium. These two nations are home to Europe's largest container ports.
DB said that many shippers have already stopped booking rail freight in advance of the strike, and that it is expected that many will shift to trucking instead as an interim solution.
The firm said that it will do everything possible to "ensure that supply-relevant freight trains arrive despite the strike."
The strike may put new pressure on Northern European businesses and manufacturers, which have already suffered shipping disruption from the Red Sea security crisis. Amidst persistent attacks off Yemen, virtually all container lines have diverted away from the Red Sea, using the much longer Cape route instead. This adds about 10 days to a typical boxship transit, and that 10-day delay creates a gap for just-in-time supply chains.
Report: Salaries Are Rising as Seafarer Job Market Gets More Competitive
Crewing provider Danica reports that recruitment of seafarers is getting harder than ever, based on the results of a new survey of shipowners.
70 percent of crewing managers and other shipmanagement professionals reported that their work has become more difficult within the past two years - even when compared with the COVID era. Almost half said that it has become harder to find the qualified crewmembers they're looking for.
For seafarers, salaries are rising as the market gets more competitive, and there may be more opportunities to transfer to a new company with better pay. 60 percent of the shipping firms that completed the survey said that they had raised wages for officers and ratings. Salaries for senior officers have risen by 10-30 percent at these firms. (Ukrainian shipfitters have done particularly well: because of a shortage of availability, they are seeing wage increases of up to 30 percent.)
Crewing managers overwhelmingly believe that pay is the main reason their employees to change jobs. Crewmembers agree: 80 percent of the seafarers who completed Danica's most recent crewmember survey reported that salary was the main reason for switching employers.
"The results [of the survey] are interesting and demonstrate how shortages of competent sea staff, particularly in certain ranks, are impacting crewing strategies for shipping firms. It also seems the majority of ship owners and managers are recognizing that salary levels need to increase in order to recruit and retain top talent," said Henrik Jensen, Danica's CEO.
