The shipping industry is experiencing a complex paradox: while seafarer retention rates have seen a notable uptick, the struggle to recruit skilled crew members remains a pressing concern. Nearly 90% of shipping companies have raised crew salaries in 2024, according to the latest Crew Managers’ Survey from Danica Crewing Specialists.
However, industry experts caution that despite these financial incentives, the challenge of filling skilled positions persists.
Positive Signs for Retention but Ongoing Recruitment Hurdles
The survey indicates that the increase in salaries has been more generous than in the previous year, contributing to improved retention rates. Retention rates for seafarers have generally declined across the board, with a significant number of companies reporting a more stable workforce. Key findings from the survey highlight the following:
- Salary Increases:
- 75% of senior officers received pay raises in 2024, a jump from 63% the previous year.
- 67% of junior officers saw wage hikes, up from 59% in 2023.
- 65% of senior ratings (such as Bosun, Fitter, Cook) benefitted from salary increases, compared to 54% in 2023.
- Over 50% of other ratings also received pay raises.
As a result, 41% of crew managers reported improved retention rates, a notable increase from 29% in the prior survey. However, the statistics reveal that 23% of companies still faced deteriorating retention rates, marking a decrease from 36% the year before.
Challenging Recruitment Landscape
Despite these positive retention trends, the survey revealed that nearly one-third (31%) of respondents still struggle to recruit skilled crew members—indicating a troubling recruitment landscape. Industry experts note that while there may not be a shortage of seafarers overall, there is a distinct lack of “competent” professionals capable of meeting the demands of the modern shipping industry.
Many crew managers believe that the complexities of hiring skilled personnel stem from ongoing changes in the shipping sector, including shifts in crewing strategies to meet evolving operational needs. The focus has shifted from simply filling positions to ensuring that those filling them possess the right skills and expertise.
Diversifying Recruitment Strategies
To combat these recruitment challenges, shipping companies are increasingly diversifying their hiring practices. The survey found that 57% of companies plan to recruit from a wider range of nationalities in 2024, which is a substantial rise from 42% in 2023. This broader approach signifies a move away from relying solely on seafarers from single nationalities, embracing a more global recruitment strategy.
Moreover, it’s worth noting that 80% of crew managers and directors now report directly to top management, highlighting the strategic importance of effective crewing operations within the organizational hierarchy.
Conclusion: A Complex Future for Crewing Operations
While there are promising signs of enhanced retention in the shipping industry, the complexities of managing crew recruitment and operations remain. Danica’s previous survey indicated that crew managers are facing heightened challenges, as only 4% of respondents felt their workload had decreased in 2024.
As the industry strives to adapt to changing demands and improve recruiting efforts, the interplay between salary adjustments and the need for a skilled labor pool will be a crucial focus for shipping companies moving forward. The path ahead may be challenging, but those who navigate it adeptly will be best positioned to thrive in an evolving maritime landscape.