Index 2

Index

1. Chapter One: Innovation in Maritime Education and Training

1.0 Introduction

The amendments to the STCW Convention agreed in 1995 came into effect in

2002 with some changes in January 2003. The provisions concerning the need

for governments to submit quality standard reports to the IMO, concerning their

training and certification systems, were required to be met as recently as 2004.

The changes introduced in 2003 were not extensive and the changes that was

expected in 2010 to address several important issues that argues remains a

number of deficiencies in STCW even if all of the proposed changes are

implemented.

The review, the changes in 2003, reflects the trends in the need for more

specialization to address the higher-level maritime operations onboard ships

through a wider coverage of knowledge and skills and competency. The

development of advanced navigational technologies, specialized and

professional transportation technologies and pollution prevention technologies

and regulations were considered important for inclusion into the seafarers'

competency standards.

1.1 Maritime Education and Leadership

Shipping is a private, highly competitive service industry. The activity of the

industry is divided into several categories, namely, liner service, tramp shipping,

industrial service, and tanker operation, all of which operate on certain well-

established routes. The worldwide nature of shipping and the reduction of ships’

crew complements require a different management system with higher individual

responsibilities and this requires additional education and training before duties

can be given onboard. In a critical crewing situation, where the owners use

manning agencies to find ships’ crews, it happens that they practice the habit of

shopping around between crewing agencies. This habit contributes to less crew

motivation and less community-feeling. The owners have set off this challenge

and are now struggling to achieve a reasonable crew retention rate.

Multicultural differences and the crews’ often weak knowledge of English make it

necessary to add supplementary education in English to something much more

than bare basic and to build a seafarer’s cultural awareness insight. Worldwide

MET institutions are the natural identity to forward such insight.

The IMO is fully aware of the situation and measures have been taken in different

areas to maintain a safe, secure and environmental friendly industry.

1.2 Agreement on STCW Changes

A recent review by Ziarati (2009)1 of the paper by Yongxing (2009)2 indicated that

the STW Sub-Committee has agreed to: Retain the structure and goals of the

1995 revision;

Address the inconsistencies, misleading interpretations, outdated provisions,

MSC instructions, Address requirements for effective communication; Provide for

flexibility in terms of compliance and for required levels of training and

certification and watch-keeping arrangements due to innovation in technology.

1.3 Review of STCW Convention and its codes

The review of several minor changes in 2003 reflects the trends in the need for

more specialization to address the higher-level maritime operations onboard

through a wider coverage of knowledge and skills and competency required as

1 Ziarati et al, Ziarati, M. ‘SURPASS Leonardo Project 2009-2011 No: 2009-1-TR1-LEO05-08652, www.c4ff.co.uk.2 Yongxing, J., and Ruan, W., Understanding of the Impacts of the International MaritimeConventions and Rules upon Maritime Education and Training and the Strategies there of,IMLA, 2009, Ghana, 2009.

results of the changes. The development of advanced navigational technologies,

specialized and professional transportation technologies and pollution prevention

technologies and regulations were considered important for inclusion into the

seafarers' competency standards.

1.3.1 Security training and related issues

The International Maritime Organization's (IMO), International Ship and Port

Facility Security Code (ISPS) and the U.S. Maritime Port Security Act of 2002

(MTSA) require training for port and vessel security personnel. IMO is

determined to achieve a design with more systematic maritime security training

scheme. This was agreed with a set of three-level security training and

knowledge requirements for the Ship Security Officer, for shipboard personnel

having specific security related duties and for all other shipboard personnel. It is

predetermined that all shipboard personnel should be subject to the basic skill

training and guidance for maritime security as required by the Regulations VI/1

and VII/1 of STCW code A. All shipboard personnel having specific security

related duties shall receive professional training related to the Shipboard Security

Plan and that when onboard all in employment personnel experience

familiarization training to develop the required security skills. The author argue

that recently emerging piracy issues should be dealt with in this context in order

to provide more assets for the ship’s crew for their own defense.

1.3.2 Simplifying navigation calculations

The competency standards relating to celestial navigation calculations has been

reviewed and strengthened. The regulation B –IL/1 of the code will be amended.

The application of computerized celestial navigation calculation will be included

in the relevant provision of code B. Use of computers and the calculators for

celestial navigation calculations may give in considerable reduction for dedicated

class hours which may be used for extended simulator practice.

1.3.3 Adding training requirements for VTS

This is primarily included to secure the understanding of the masters, chief

officers and officer of watch on the types and the limitation of VTS, and prepare

them so that they apply specific procedures for the VTS maritime safety with

regard to table A-II/1, A-II/2 and A-II/l of the Convention, and 3-1 of A- VIII/2 and

B-I/12 and their expected updates. This can be achieved in short courses on VTS

applications designed both for VTS operators and ship officers in a simulator

environment. Also including pilot trainees in these courses may provide full

training for all involved in entry/departure operations.

1.3.4 Making BRM and ERM training compulsory

The courses were developed and encouraged by the shipping industry.

Considering the similarities between Bridge Resource Management (BRM) and

Engine-room Resource Management (ERM) principles the two courses will be

transferred from section B- V III /2 to A- VIII/2 and hence made compulsory.

According to Yongxing (2009)3 the new convention is expected to come into

effect in the year 2012 and be applied in the next 8-10 years. It is expected that

the new revision will play an important role in improving maritime safety and

pollution prevention through its effective implementation world-wide. For MET

institutions, Ziarati (2009) states that the revised Convention will require a

revision of strategies for teaching, learning and assessment as there will not only

be new content but greater and wider use of high technology navigation and

hence computer simulations. The simulators will play a major role in learning and

competence development and assessment. The need to develop transparent

quality assurance and control as well as management becomes more urgent for

reputable METs particularly considering the new and more determined role by

authorities such as EMSA in externally verifying the implementation of STCW in

3 Yongxing, J., and Ruan, W., Understanding of the Impacts of the International MaritimeConventions and Rules upon Maritime Education and Training and the Strategies there of,IMLA, 2009, Ghana, 2009.

member countries by visiting MET institutions. The revision of STCW in 2010 is

as significant as the changes introduced in 1995 and the implementation of the

new STCW will be very challenging for MET institutions and the national

administrations. The new STCW is expected to create opportunities for

progressive MET institutions to take a lead and offer leadership for development

and transfer of innovation world-wide.

1.4 SOLAS, MARPOL and other Maritime Conventions

Today there are many new topics and issues in maritime safety that require the

attention of the IMO and maritime community worldwide such as emergence of

automation, importance of reducing pollution and improving safety and security

which required a careful review of the LRIT, GB3S, GISIS, FSA and initiatives

promoting the assessment of risk management, E-Navigation, and port of refuge

regulations.

The protection of the environment has now become a topical issue and recent IMO

initiatives with regards to reducing waste and pollution such as ‘Ships Recycling,

Green-House Gas Emissions from Ships (GHG), Special and Particularly Sensitive

Sea Areas, Control and Management of Ship's Ballast Water and Sediments, etc.’

will provide ample opportunities and catalysts for MET institutions to review their

provisions while at the same time incorporating the changes in STCW requirements.

1.5 Maritime education and training (MET)

It is realized that the human-performance is the dominant factor that

determinates how safe merchant shipping will be. The human factor has been

found to give a very high percentage of accidents at sea, “… it means that

generally about 80 percent of all accidents are caused by the human factor”

(Jense, 2006, p. 100)4. The 80 percent relates to direct mistakes caused by an

4 Jense, Göran (2006). Den säkra osäkerheten – om sjöfart, risk och säkerhet [The uncertain Certainty – about Shipping, Risk and Safety]. School of Technology and Design, Research report, 29. Växjö: Växjö University. [In Swedish].

operating human. In matter of fact; it could be 100 percent because humans are

also creating the conditions for operators to accomplish their duties. In order to

effectively minimize such accidents, as known today, the answer is to be found in

education and good shipping management. Another factor, to assure better

accident statistics, is to do something about the ship/shore element of

operations; the ship/port interface (SPI).

1.6 Leadership education for MET students

Though not always clearly spelled out, world wide MET education is supposed to

ensure that the students not only have intellectual rigor, but as well have

obtained leadership abilities and feelings of commitment. This comprises to “…

have an inner capacity to touch people through their work … produce good

leaders with a good character and heart” (Bala, 2007, p. 10).

Leadership is defined as: “… the process of influencing others to understand and

agree about what needs to be done and how it can be done, and the process of

facilitating individual and collective efforts to accomplish the shared objectives”

(Yukl, 2005, p. 8). It signifies that leadership is a subject that is linked to several

subject-areas like psychology, pedagogy and sociology. Leadership is also much

linked to management. Management is a subject matter that has a key influence

in almost all WMU course-subjects.

1.7 Carss’ Transformational Leadership Critical Skills Model

Carss’ designed Transformational leadership Critical Skills Pyramid to propose

several hypotheses about the skills of transformational leadership. In order for

leaders to maximize their transformational leadership levels they must first

develop their lower level skills. Many of the upper level skills rely on the

foundational lower level skills; therefore, these skills are the most important to

develop.

In order to use versatility, consultation, and problem management skills leaders

need to be able to effectively communicate with followers. The bottom four skill

sets must first be mastered before a leader can work on their versatility skills. It is

hypothesized that once a leader masters a lower level skill, they will progress up

to the next critical skill set. Therefore, upon testing of this measurement tool it is

expected that individuals will receive higher scores on the lower level critical skill

sets. In future research, these hypotheses will be further validated. As shown in

figure 2.

Figure 2: Carss’ Transformational Leadership Critical Skills Model

A professor in class is considered to be a leader. Leadership of the 21st century

normally includes characters like: Intelligence, persuasion, ability to inspire,

knowledge, experience and an apprehension of humans (Drakenberg, 1997) 5.

Modern developing leaders (contrary to conventional leaders that are

demanding, rewarding and controlling) have been identified by Larsson (2006)

and are characterized to have thoughtful and caring aspirations, inspires and

have a genuine motivation13.

1.7.1 Practices and commitments to improve leadership skills

Recent research by Anderson, Gisborne, & Holliday (2006), suggests specific

qualities which transformational leaders require to build strong relationships with

5 Postgraduate Studies For Classroom Teachers, COMPARATIVE STUDY, Margareth

Drakenberg, Juhani Hytönen

followers, which are: understanding, caring, respecting, genuineness, and

specificity. The quality of understanding entails that leaders understand personal

and organizational needs, problems, goals, and dreams.

The Practices and commitments to improve leadership skills in the workplace

were identified by Bradley W. Carss, 2010 6 as:

1. Challenge the process

a. Search for Opportunities

b. Experiment and take risks

2. Inspire a shared vision

a. Envision the future

b. Enlist others

3. Enable others to act

a. Foster collaboration

b. Strengthen others

4. Model the way to the desired objectives

a. Set the example

b. Plan small wins

5. Encourage the heart of everyone involved

a. Recognize individual contribution

b. Celebrate accomplishments

1.7.2 The Outcomes of Transformational Leadership

Several studies have found that by displaying the positive behaviors of

transformational leadership, work teams experience higher levels of performance

(Avolio & Yammarino, 2002; Bass & Avolio, 1994; Bass, 1985; Dionne,

Yammarino, Atwater & Spangler, 2004; House, 1988; Howell & Avolio, 1993;

Kirkpatrick & Locke, 1996; Smith, 1982). In a study completed by Smith (1982),

he analyzed the level of performance within 30 transformational leaders and 30 6 The Measurement of Transformational Leadership Skills in the Workplace,

Bradley W. Carss, 2010

non-transformational leaders in a wide variety of organizations. In Smith’s

findings, he validated that the transformational leader’s teams had higher levels

of performance and self-assurance compared to the non-transformational

leader’s teams. Smith concluded that transformational leaders achieved these

higher levels of performance and self-assurance because of their self-efficacy

beliefs.

According to Avolio & Yammarino (2002), transformational leadership has a greater

impact on follower performance than other styles of leadership. From this study, we can

see that transformational leadership behaviors are the optimal choice for the leaders of

today’s global marketplace, as shown in the figure 1.

Figure 1: Impact of high levels of transformational leadership on followers

1.7.3 Self-Management Skills

The skills of self-management are the critical building blocks to help leaders begin to

realize their personal strengths and areas of opportunity. In order to improve as a

leader, they must first understand what areas need improvement. Gaining a better

sense of one’s self has a positive correlation to transformational leadership (Anderson,

Gisborne & Holliday, 2006; Kouzes & Posner, 1999; Kouzes & Posner, 2002).

1.7.4 Interpersonal Communication Skills

Interpersonal communication skills are foundational skills. These skills are vitally

important to any leader. The ineffective use or lack of use of these skills can result in

undermined leadership credibility and decreased influence on followers. The effective

use of interpersonal communication skills will improve the effectiveness of the vision,

mission, values and goals that leaders are trying to inspire followers to embrace. These

skills can also develop harmonious relationships within the team which will create higher

levels of team cohesion which is proven to have a positive effect on performance

(Anderson, Gisborne & Holliday, 2006; Avolio & Yammerino, 2002; Kouzes & Posner,

1999; Kouzes & Posner, 2002).

1.7.5 Problem Management (Coaching, Counseling and Mentoring) Skills

Coaching, counseling and mentoring followers is a process that is instrumental in

managing and planning actions to deal with specific problems. For almost all teams and

organizations, problems always arise along the way. Transformational leaders use these

skills to effectively overcome problems; thus, strategically guiding their organizations

through difficult times and towards success. Effectively managing problems has a

positive effect on the innovation process and the development of teams; therefore,

increasing the performance of teams and organizations (Anderson, Gisborne & Holliday,

2006; Gumusluoglu & Ilsev, 2009).

1.7.6 Consultation Skills

The skills of consultation allow an organization to continuously improve and adapt to

changes in the business marketplace. These skills are used to assess the needs and

problems of teams and organizations so they can develop and improve processes.

According to research completed by Kouzes & Posner (1999), the effective use of these

skills will result in large increases in performance within teams and organizations.

1.7.7 Versatility Skills

The skills of versatility require a leader to shift between specific roles, leadership styles,

and skills in order to deal with certain situations. According to Anderson, Gisborne &

Holliday (2006), this skill set is the most difficult to develop but can have the greatest

impact on the success of a transformational leader and his/her team and organization’s

performance.

2. Chapter Two: Availability and Training of Seafarers

2.0 Introduction

This chapter is concerned with the overall review of the attempts to set the scene

for the outcomes which will be found in the following parts; the Technical Review,

the People Review and the Training Review. The aim is to reference all those

features which, to a greater or lesser extent, may impact on the Terms of

Reference, under the broad heading "The Availability and Training of Seafarers

Future Impact".

Within this chapter the following areas are addressed:

Background and methodology

The Organization for Economic Co-operation and Development (OECD)

The historical perspective of the industry

The influencing groups

The constraints to the study

2.1 The Influencing Groups

Relative to the shipping industry at larger scale, the key groups of bodies /

organizations are believed to be:

Ship Owners / Operators

As has been the case, traditionally, ship owners remain the largest

group involved with the industry and, as regards OECD countries,

Japan is the largest, followed by Greece, United States and

Norway.

Ship Managers

Hence the ship management sector is currently estimated to control

25% of the world fleet, this being up from 20% in 1990. It is

expected to reach 33% by 2010. (Lloyd’s List 27th September

2001). This group may be contracted by an owner or a bank to

carry out traditional shipping functions, ranging through manning,

management, commercial, etc. Ship managers, whilst global in their

coverage of services, tend to be concentrated in the following

areas:

- North West Europe - eg Norway, UK (including Isle of Man)

(OECD countries)

- Mediterranean - prominent in Greece and Cyprus (some

OECD countries)

- Hong Kong and Singapore

- Middle East - particularly Dubai

- Other pockets such as Australia, United States and small

numbers (embracing OECD countries)

Manning Agents

Manning agents are the group associated with the supply of marine

personnel and are based in the country of recruitment from which

the seafarer is drawn. Increasingly, they are based in the Far East

and India and, more recently, Eastern Europe.

Ship Builders / Equipment Manufacturers

By far the largest percentage (around 70%) of ship builders and

equipment manufacturers are located within OECD countries,

together with associated research bodies.

International Regulatory Bodies

These will include the International Maritime Organization (IMO),

International Labor Organization (ILO), Port State Control, etc.

Other International Bodies

These will include classification societies, the Baltic and

International Maritime Council (BIMCO), the International Shipping

Federation (ISF), the International Chamber of Shipping (ICS), the

Organization for Economic Co-operation and Development

(OECD), etc.

Shore Training Institutions

These will include Maritime Colleges in many OECD countries and

also wider bodies, such as the World Maritime University.

Shore Marine Bodies

Such as relevant ship owners' organizations, lawyers, harbor

authorities, P&I Clubs, consulting firms and others.

Seafarers

Finally, the seafarers themselves, in some cases at a distance, are

the seafaring unions, with the international body being the

International Transport Workers' Federation (ITF).

2.2 The Technical Review

The Technical Review covers the present state of world and OECD country

shipping and its future development. Throughout this section, the Report

concentrates on the actual number of ships, rather than the normal measurement

of fleet sizes, Gross Tonnage (GT) or deadweight tonnage (dwt). Comparisons

will be provided to ensure continuity with referenced figures or diagrams.

2.2.1 Ships

Ships carry 95% of all world trade. That was estimated to be as large as a

300,000dwt ULCC carrying crude oil from the Gulf to Japan or as small as the

inter-island ferry carrying some passengers and live sheep. Each and every ship

must be operated, navigated and maintained effectively, efficiently and in a risk

managed environment. Without ships, and people to crew, manage and provide

the myriad of ancillary services, national and international trade would cease to

exist.

The coastal countries provide the traditional core of international Ship-owners

and seafaring nations and, in today’s world, their participation and influence in

the shipping industry and in the ownership and management of ships could be

seen as unbalanced. The heritage of successful ship management means that

they control and employ a large percentage of ships, crews and personnel who

operate in the wider shipping industry.

To identify what the needs and the figures will be in the next ten to fifteen years it

is necessary to have a detailed picture of the state of contemporary shipping and

shipping industry.

2.2.2 World Fleet

It is almost impossible to actually quantify the size of World Merchant Fleet, for any

given time, as the number of ships, and their ownership, fluctuate on a daily basis.

However, presently there are approximately 87,500 ships over 100GT (Lloyd’s Register)

and these ships have a total of 560 million GT.

Included in the World Fleet numbers are 37,000 miscellaneous ships, such as inshore

tugs, dredgers, and larger fishing vessels, that make up 5.2% of the world total GT i.e.

individually they are of a small size. Though these small ships need Officers and Ratings,

their requirements have been excluded from this Report.

The ships that are identified in the Report have Lloyd’s Register defined Categories, and

include all cargo and passenger carrying ships, and specialist offshore ships. The World

Fleet total for these ships is 50,256 with a capacity of 538 million GT (or 792 million

dwt).

Source: OECD & Lloyds Register 2000

2.2.3 Ship Design and Technology

"The Future Ship is fast, efficient and economic. It is fitted with latest available

equipment. It has to be suitable for the intended service, but simultaneously

flexible enough for other complimentary service. It must be very safe and

environmental friendly. It must be able to operate with minimum crew. It should

be a pleasant workplace and home for the crew. If it is a passenger vessel, all

possible entertainment facilities should be available. In addition, the future ship

should also be nice looking in order not to upset anyone aesthetically.”

(NAVIGATOR 6/2001).

There are approximately 14,000 companies around the world that are involved

with the construction of ships, their engines and marine equipment and 75% of

these companies are situated in OECD countries.

These companies have had a huge influence on the past design and technology

of ships and shipping, and will continue to have an effect on their future. In

addition, the commercial shipping organizations, both operators and users, have

been at the forefront of innovation and design.

This has resulted in change and, over the past decades, ships and the

management of them have become more technically, commercially and socially

sophisticated and, in certain trades, incredibly complicated. The ships carry more

various and specialist cargoes, ships such as car carriers, wood product carriers,

tankers are designed to load and unload at single point moorings and a multitude

of specially fitted out ships. They are in operation now and, along with the rest of

the merchant fleet, they operate under a far greater amount of legislation and

controlled management and often with smaller crews than in the past.

Present day ships are being built to carry complex and technically demanding

equipment, and indeed ships that have traded for many years can and are being

retrofitted with similar types of systems and equipment, from computer control

engines and cargo systems to GMDSS, e-charts and Automatic Identification

System (AIS).

In addition, ships appear to have more equipment, both manual and automatic,

systems and processes and they need Officers and Ratings that have a high

degree of different and diverse competences than those expected in the past.

2.3 Present Design of Ships

To appreciate the possible future changes in design and technology of ships it is

important to understand the current and recent past situation in shipbuilding.

Eeven though, as already indicated, there is a variety of ship types from the very

large to the very small, they all have fundamental characteristics of navigation,

propulsion, safety and cargo handling systems and ships being built in 2002 are

fundamentally the same as those that have been being built over the past

decade. Included here are some broad examples of ships built in recent years.

The variations of ship design would include (not limited to) the followings:

Design

Propulsion and auxiliaries

Cargo System

Automation, Control and Electronics

Such changes would require different MET to graduate officers capable to

operate such ship.

2.4 Future Development

The future development of ships, their management and operations is open to a

wide range of assumption from the “nothing will change” to the distant dreams of

one man crews, shore based automation and High Speed Craft that can sail at

50 knots through all kinds of weather, on all kinds of seas and carry economic

amounts of cargo. The truth will lie closer to the former than the “distant dreams”

and the reality of costs and risk management ordains that the changes that occur

in shipping will continue to be gradual and incessant.

However, according to the forecasts, demand for new ships will keep rising in the

next few years. Current worldwide shipbuilding capacities will cover this demand.

Shipyards will increase their capacities by 15.5% to 26.7m GT and up according

to the demands of the market. New ships will bring in innovative designs and

ideas for operators to contend with. In addition, there are fundamental changes

that will take place and that will affect the future of the crews, managers and the

ancillary organizations related to ships.

2.5 Trade Patterns

The need for different ship types is varying strongly over time. Old workhorses of

the general cargo ship design are gradually leaving the scene to new types

entering the same trades and special designs are developed to serve new trades

for special commodity types, wood products, car/vehicle carriers, heavy lift etc.

The containerization of general cargo trades is one of the most prominent

features. Providing “round the world” voyages to major centres and having feeder

services to take the boxes to more convenient ports. Reefer vessels have

suffered strongly from the competition from refrigerated containers. However,

several reefer trades in bananas, other fruits, fish or meet do not fit in easily with

the large around-the-world container services and are continuing to trade with

specialist ships.

2.6. Legal

The importance of legislation cannot be ignored and quick overviews of the

present scene are:

Management Systems – the implementation of the International Safety

Management (ISM) Code in August 2002 identifies the responsibility of the

operator in the management of all ships over 500GT. The long-term

effects on shipping through the possible pressure from associated

organizations i.e. banks, insurers, P&I and classification societies could

lead to a reduction in the number of ship operators though not a reduction

in the number of ships.

Hours of working - In 1997 the minimum rest requirements entered into

force as part of STCW ‘95, and in the future these will be augmented by

the additional ILO requirements contained in the ILO Convention on

Seafarers' Hours of Work and the Manning of Ships (ILO No. 180), which

is expected to come into force within a short period of time. The new

legislation on minimum rest requirements will probably present an

operational challenge to some shipping companies seeking to ensure that

they are in compliance, especially those ships that operate on the

Minimum Safe Manning numbers, with some confusion on what the actual

regime, hours of rest and work will apply.

MARPOL – Annex I – Oil: Since 6 July 1993 Regulation 13F requires all

new tankers of 5,000 dwt and above to be fitted with double hulls

separated by a space of up to 2 metres (on tankers below 5,000 dwt the

space must be at least 0.76m). Double-hull tankers offer greater protection

of the environment from pollution in certain types of accident. (September

2002) for accelerating the phase-out of single-hull oil tankers will see most

single-hull oil tankers eliminated by 2015 or earlier.

MARPOL – Annex VI – Air: Will set limits on sulphur oxide and nitrogen

oxide emissions from ship exhausts and prohibit deliberate emissions of

ozone depleting substances. Many ship operators are already installing

the equipment in anticipation of its final ratification.

Environmental – Control of water ballast for non-indigenous life and

discouraging the introduction of foreign organisms to any ecosystem and

the avoidance of toxic paints (GloBalst). With the “International

Convention on the Prohibition to Use Paints Containing Tributylitin (TBT)”,

(approved in October 2001), the use of paints containing the antifoulant

TBT that, at even very low concentrations, is toxic to fish and other aquatic

life is prohibited as of 1st Jan 2003 and by 1st Jan 2008 must be removed

from hulls or “sealed” to prevent them from harming the marine

environment.

Security – The IMO Conference on Maritime Security (December 2002),

introduced the International Ship and Port Facilities Security Code (ISPS)

- these new regulations will enhance ship and port security and avert

shipping from becoming a target of international terrorism, the aim is to

reduce risks to passengers, crews and port personnel on board ships and

in port areas and to the vessels and their cargoes.

Seafarer Conditions – At the 29th session of the International Labor

Organization's (ILO) Joint Maritime Commission (Jan 2001) a major

agreement was announced, known as the Geneva Accord - this is

designed to improve safety and working conditions in the maritime

industry by formalizing a joint convention containing and updating all the

most important existing ILO rules. It also agreed to update the ILO

minimum wage for seafarers from $435 to $450 with effect from 1 January

2002 and to $465 (January 2003).

2.7 Ships and the Future – An Industry View

With the new technology that is available on the market, it is important to

understand if each side of the shipping industry, builder/manufacturer and owner,

has the same views as to its future development.

During the preparation of this Report questionnaires were to different categories

of “stake holders” within the wider industry and the results received back, for the

future needs and developments of ships and their equipment, provides an

indication of the collective views.

Builder For developing a new design or product, the overwhelming majority of

ship builders and equipment manufacturers identified reliability as the most

important aspect. Efficiency, simplicity of design and needs of the client were all

major views that provided the second category of importance. Only a small

minority, however, considered the human factor in both crewing numbers and

their training as important.

With regard to major developments over the next 5 - 10 years, the ship builders

and equipment manufacturers identified that decreased maintenance and

increased reliability would play a major part, although main engines efficiency

was a strong contender as well. The importance of IT did not rate very high with

this group nor did the idea that ships will develop in size. In general, there was a

feeling that ships getting larger were not probable.

Owner

The owners who responded identified efficiency and reliability as the major

factors of purchase of the ship or equipment, followed by the needs of the

client, this obviously recognises the fact that they will be selling a service

with the ship and it must meet the quality definitions of needs and

expectations of the customer. Again the personnel factors of the ship were

not considered as significantly important.

With regard to major developments in shipping, the owner respondents

identified engine efficiency as the highest factor, and decreased

maintenance and IT coming in second place. Again, they do not see larger

vessels playing a significant role in shipping.

A case study developed during the research is included.

Buying or building

The strategic building or purchase of a ship and its equipment is an

enormous investment on the part of the owner/operator and the

builder/manufacturer. The consequences of either party making the wrong

decision are incalculable. The risks associated to the financial,

commercial, social, safety, environmental and reputation aspects of

building or buying incorrectly could have a catastrophic effect on the buyer

or builders operation and future.

Therefore, it is not surprising that both owners and builders thought the

most important considerations in the sale of a ship or marine equipment

was reliability and efficiency of the design was the first choice, with the

needs of the client as the next. It is also not surprising that builders cited

“simplicity of design” as an important factor as it makes it easier for them

to build.

Future developments

From the options of major developments identified during research, the

collective opinion of respondents indicates that the future development of

ships will not be based on size, as both builders and owners put larger

ships as a low priority. The great majority thought that more efficient

engines and decreased maintenance will lead future developments.

2.8 Main areas of future change

Other areas of change estimated for the next decade will be for legal, risk control,

economic and efficiency reasons and, in many cases, they will affect existing

ships or ship’s systems, and estimated to include:

Legal

The major alterations to ships and the way they operate will be imposed

by changes in the international law. Both environmental, through

MARPOL, and safety law, through SOLAS.

Economic

Economic factors related to the regional use of ships, e.g. EC’s short sea

trader initiative, and increasing the viability of national flags, through tax,

will have a local effect, however the overall influence on OECD (or global)

ship numbers and technology will be negligible.

Risk Management

The management of risk through adequate controls in all aspects of the

ship’s operation is vital and owners or management have ensured that

environmental considerations have had a high priority over the last forty

years, certainly since the "Torrey Canyon" sank in 1967. The benefits of

paying attention to environmental issues have been highlighted even more

so since the Exxon Valdez grounded in 1989.

The possible catastrophic consequences to owners’ and managements’

business and reputation that ignore it have been well illustrated.

IT Developments

The constant growth of IT and communications are guaranteed, although

it is hard to estimate the amount of operating ships that have access to a

computer at present and impossible to estimate how many will be using

them in the future, what is certain is that more ships will be presented with

computers to make things “easier” for them to operate. If done correctly,

the introduction of computerization should provide data that is of vast use,

especially in safety operations where incidents and accidents can be

analyzed to identify trends and prevent similar events occurring, and in

commercial operations e.g. Electronic Data Interchange (EDI), and could

provide a way forward in e-commerce to enhance shipping’s trading,

logistics and transport procedures.

Control

Many current ship operators, owners or managers have also taken an IT

route to provide better management; they have ships producing daily data

that records almost every facet of shipboard operations, navigation,

maintenance and cargo.

3. Chapter Three: Impact of Globalization on International

Maritime Transport Activity

3.0 IntroductionShipping has been an important human activity throughout history, particularly

where prosperity depended primarily on international and interregional trade. In

fact, transportation has been called one of the four cornerstones of globalization,

along with communications, international standardization, and trade liberalization

[Kumar and Hoffmann, 2002]7. Due to a number of technological, economic, and

socio-cultural forces, only the rare country can keep itself fully isolated from the

economic activities of other countries. Indeed, many countries have seen

astonishing economic growth in the recent past due to their willingness to open

their borders and markets to foreign investment and trade. This increased flow of

knowledge, resources, goods, and services among our world's nations is called

“globalization”, formally defined as “the development of an increasingly integrated

global economy marked especially by free trade, free flow of capital, and the

tapping of cheaper foreign labor markets.” (Merriam-Webster, www.merriam-

webster.com/dictionary/globalization, accessed 2008).

3.1 Maritime Shipping and Goods Movement

Global goods movement is a significant element in the global freight

transportation system that includes ocean and coastal routes, inland waterways,

railways, roads, and air freight. In some cases, the freight transportation network

connects locations by multiple modal routes, carrying out as modal substitutes

(see Figure 1a). A primary example is containerized short-sea shipping, where

the shipper or logistics provider has some degree of choice how to move freight

between locations. However, international maritime transportation is more

commonly a complement to other modes of transportation (see Figure 1b). This

is particularly true for intercontinental containerized cargoes and for liquid and

7 14.Kumar, S and Hoffmann, J. 2002: Globalization, the maritime Nexus. In: Grammenos, C.Th. (ed.). Handbook of Maritime Economics and Business. LLP: London.

dry bulk cargoes, such as oil and grain. Here, international shipping connects

roads, railways, and inland waterways through ocean and coastal routes.

Figure 1. Ocean shipping as (A) a substitute and (B) as a complement for other freight modes

Source: First published in the IMO Study of Greenhouse Gases from Ships (Skjølsvik et al., 2000).

Mode choice (especially for containerized cargo movement) involves balancing tradeoffs

to facilitate trade among global corporations and nations.

3.2 The Global Economic Role of Maritime Shipping

Marine transportation is an integral, if sometimes less publicly visible, part of the

global economy. The marine transportation system is a network of specialized

vessels, the ports they visit, and transportation infrastructure from factories to

terminals to distribution centers to markets. Maritime transportation is a

necessary complement to and occasional substitute for other modes of freight

transportation. For many commodities and trade routes, there is no direct

substitute for waterborne commerce. (Air transportation has replaced most ocean

liner passenger transportation and transports significant cargo value, but carries

only a small volume fraction of the highest value and lightest cargoes; while a

significant mode in trade value, aircraft moves much less global freight by

volume, and at significant energy per unit shipped.) On other routes, such as

some coastwise or short-sea shipping or within inland river systems, marine

transportation may provide a substitute for roads and rail, depending upon cost,

time, and infrastructure constraints. Other important marine transportation

activities include passenger transportation (ferries and cruise ships), national

defense (Naval vessels), fishing and resource extraction, and navigational

services (vessel-assist tugs, harbor maintenance vessels, etc.).

Globalization is motivated by the recognition that resources and goods are not

always in the same location with the populations that desire them and so global

transportation services are needed (and economically justified if consumer

demand is great enough). For example, until the 1950s, most crude oil was

refined at the source and transported to markets in a number of small tankers

[sized between 12,000 and 30,000 deadweight tonnage (dwt)]. However,

economies of scale soon dictated that oil companies would be better off if they

shipped larger amounts of crude from distant locations to refineries located

closer to product markets.

Similarly, rather than palletize grains, minerals, and other commodities, dry bulk

cargo ships were designed to deliver cargoes in raw or semi-raw condition from

where they were found or grown to processing facilities (e.g., mills and bakeries)

closer to final market. Along with containerization and advances in cargo

handling and shipboard technology, these measures reduced crew sizes and

longshore labor requirements which also reduced the per-unit cost of ocean

cargo transport.

Lastly, globalization identified labor markets overseas that encouraged transport

of semi-raw materials and intermediate products where manufacturing costs

were lower. With low-cost petroleum energy for vessel propulsion, facilitated by

vessel economies of scale, the per-unit costs of semi-finished and retail products

were minimized by multi-continent supply chains. Today it is common for

agriculture products to be harvested on one continent, shipped to another for

intermediate processing, transported to a third continent for final assembly, and

then delivered to market. For example, cotton grown in North America may be

sent to African fabric mills, and then to Asian apparel factories before being

returned to North America for sale in retail stores. Orange juice, wine, and other

products have also found markets on continents where seasonal or climatic

limitations require an offshore source, or entered into competition with domestic

production at higher labor costs.

3.3 Maritime Transformations Responding to Globalization

The first modern energy conversion in marine transportation was the shift from

sail to combustion. Two primary motivators for energy technology innovation –

greater performance at lower cost – caused this conversion. Figure 2 and Figure

3 illustrate how this shift was completed during the first half of the 20th Century,

using data from Lloyds Register Merchant Shipping Return for various years.

Essentially, newer and larger ships adopted combustion technologies as part of

an economy of scale. These technologies enabled trade routes to emerge

regardless of the latitudes without consistent winds (referred to as the doldrums),

supporting both international industrialization and modern political superpower

expansion. As shown in these figures, the conversion of fleet tonnage to the

preferred technology was achieved much more rapidly than the phase out

Figure 2 Gross maritime shipping tonnages by vessel technology, 1900 – 2000 - OECD

Figure 3 Number of ships by vessel technology, 1900 – 2000 - OECD

Figure 2 and Figure 3 also show the conversion from steam to motor power. In

1948 steam ships accounted for 68% of the ships in the fleet and 79% of the fleet

tonnage, while motor ships accounted for 29% of ships and only 20% of the

tonnage; sail still powered 4% of vessels but only 1% of registered ship tonnage.

By 1959, motor ships accounted for 52% of vessels and 39% of registered

tonnage in the fleet, and in 1963 motor ships represented 69% of vessels and

49% of registered tonnage. By 1970, motor ships dominated the fleet both in

terms of ships and cargo tonnage, with 85% and 64%, respectively.

After the fuel conversion was implemented, the next big shift was to more fuel-

efficient marine diesel engines through gains in thermal efficiency in converting

energy potential of the fuel into mechanical work. Engine efficiencies increased

from 35% to 40% in 1975 to more than 50% percent today [Corbett, 2004]. This

and other technological advancements allowed maritime shipping to meet the

transportation demands driven by a growing globalized economy. Figure 4 shows

the increases in gross tonnage in the worldwide fleet since 1948 by vessel flag.

Globally, gross tonnage has increased rapidly, even though vessel flags have

largely transitioned from OECD nations to others.

Figure 4 Gross tonnage by vessel flag, 1948 – 2006

3.4 Energy and Environmental Impacts of Maritime Shipping

The expansion of goods movement to meet the needs of a globalized world does

not come free. In particular, there are a number of energy and environmental

impacts associated with the movement of goods. For example, the energy use

and emissions associated with transporting freight can be significant.

3.5 Environmental Impacts of maritime activity

Environmental impacts from ocean shipping are several, and they can be summarized in

different contexts. The environmental impacts of ocean shipping will be categorized as

either episodic or routine. These designations help to explain why some aspects of ocean

shipping, such as stack emissions, are so challenging to address. Example environmental

impacts under this taxonomy are listed in Table 1. Some pollution related to ocean

shipping is not directly from the ships, but from efforts to serve the ocean shipping sector

through port infrastructure maintenance and fleet modernization.

Episodic environmental events Routine environmental eventsVessel-based

Oil spills Engine air emissionsOcean dumping Invasive species introductions (ballast

water/hull fouling)Sewage discharges Hull coating toxics releasesOily wastewater Underwater noiseVessel collisionsShip-strikes with marine life

Port-basedDredging Stormwater runoffPort expansion Vessel wake erosionShip construction, breaking Cargo-handling air emissions

Table 1: Overview of types of ocean shipping pollution Source OECD

3.5.1 Taxonomy of Environmental Impacts

Episodic pollution discharges are among those best understood by the commercial industry and

policy makers, as evidenced by the international conventions and national regulations addressing

them. The dominant mitigation approach is to prohibit pollution episodes from occurring (as in

ocean dumping), to design systems that are safer (as in double-hulls to prevent oil spills or traffic

separation schemes to avoid collisions), to confine activities that produce untreated discharges to

safer times or locations (e.g., environmental windows for dredging), to require onboard treatment

before discharge (e.g., oily water separators), and/or to provide segregated holding and transfer to

reception facilities at port (as in sewage handling). 44. Routine pollution releases are different

than episodic discharges because they represent activities necessary for the safe operation of the

vessel, whether at sea or in port. Regulation of routine releases has lagged policy action to

address episodic discharges, partly because these impacts were not as well understood in the past,

and partly because operational behavior must change and/or new technology is required.

3.5.2 Air Pollution from Maritime Shipping

Many efforts are now underway to reduce air pollution from ships, which have

been shown to cause significant human health problems [Corbett and

Winebrake, 2007; Corbett et al., 2007]. A number of emissions control

technologies and operational strategies are in use or currently being evaluated,

especially for pollutants such as NOx (Nitrogen oxides). These emissions

controls have been categorized as either pre-combustion, in-engine, or post-

combustion controls [Corbett and Fischbeck, 2002]. A list of technologies for

selected pollutant reductions are shown in Table 2. It should be noted that many

of these technologies require increased energy demand, and therefore increases

in CO2 emissions. This suggests that technology alone may not solve

environmental issues, and that alternative energy sources or more sustainable

freight logistics or operations may play a role.

Stage Control technology Target Pollutant Pre-combustion Fuel water emulsification NOx

Humid air motor NOx Combustion air saturation system NOx

In-engine Aftercooler upgrades NOx Engine derating NOx Injection timing delay NOx Engine efficiency improvements NOx, SOx, PM, CO2

Post-engine Selective catalytic reduction NOx Seawater scrubbing SOx Diesel particulate filters PM Diesel oxidation catalysts PM

Vessel designs Hull form CO2, energy ratio pollutants Propeller CO2, energy ratio pollutants

Table 2: List of example air pollution control technologies for maritime shipping

Source OECD

3.5.5 Invasive Species

Another important environmental problem due to globalization is the introduction of

invasive species [Bright, 1999]8. Research consistently identifies shipping (hull fouling,

solid and water ballast) as a major invasion pathway since the 1500s when global

maritime trade established routine intercontinental waterborne routes. [Ricciardi, 2006;

Ruiz et al., 2000a; Ruiz et al., 2000b; Wonham and Carlton, 2005]. Native species can be

transported by ships many thousands of miles and then released into non-native waters.

These “non-native species” sometimes have the capacity to become “invasive”, i.e., they

can reproduce rapidly and tip sensitive species balance that often exists in a given

ecosystem.

8 Bright, Christopher. “Invasive Species: Pathogens of Globalization.” Foreign Policy 116 (1999):

4. Chapter Four: Developing an Effective Maritime Education and

Training System

4.0 Introduction

The Training should cover the application of training in the wider shipping

industry. It provides general information on the present provision of training and

where the future lies, with regard to:

the legal and voluntary provisions for seafarer training

a broad discussion on the training that is available for office

personnel

the results of industrial views on training from owners, builders,

employers, seafarers, and

observations on the future development of seafarer training

Training in shipping is carried out in most countries of the world and 70% of all

maritime training organizations are situated in OECD countries. Amongst all the

national diversity of thirty countries there is little conformity in the general training

of people and, similarly, each country has developed its own specifics for a

maritime education system.

4.1 Maritime Education

Maritime education can be roughly divided into four main areas, safety, technical,

commercial and everything else, although these areas do overlap extensively

and must be considered individually:

Safety

Safety training relates to the crew, ship security, cargo and environment

and is covered by the IMO: STCW, SOLAS and MARPOL Conventions

and requirements. It will also include Certification for personnel in Watch-

keeping Competences, fire-fighting, Oil Tanker Safety and Dangerous

Cargoes that can be obtained by attending courses and passing

assessments. Training for all the above mentioned is also compulsory

onboard the ship through demonstrations, drills and exercises that cover

the safety equipment carried, e.g. life jackets, fire extinguishers etc, and

the processes and procedures for emergencies onboard, e.g. collision,

pollution etc. Participation of onboard training must be logged.

Technical

Technical training is closely related to safety but not mandatory, apart

from broad interpretations of the requirements of the ISM Code, which

relate to ship familiarization and understanding the Safety Management

System (SMS). It covers the highly sophisticated equipment.

Commercial

Training covers the business related activities of the ship and its

operation, the procedures and processes for complying with the

contractual requirements of the operation,

Other areas of training include management training

Topics of these other areas will include all the areas of finance and

budgets, personnel or human resources, marketing, public relations,

administration, training provision and secretarial skills.

4.2 Training

It is understood that there is a wide diversity of training subject areas expected to

be provided to seafarers, but there is, also, a wide diversity in the methods of

training, routes and media for delivering the education and training identified.

The Training should covers the application of training in the wider shipping

industry. It provides general information on the present provision of training and

where the future lies, with regard to:

the legal and voluntary provisions for seafarer training

a broad discussion on the training that is available for office personnel

the results of industrial views on training from owners, builders,

employers, seafarers, and

observations on the future development of seafarer training

4.2.1 Safety Training

The major influence on the safe operation of the ship is the International Maritime

Organization (IMO), the UN body that regulates the safety aspects of ships and

shipping, including people, operations, cargo and the environment. The prime

authority on training is the International Convention on Standards of Training,

Certification and Watch-keeping for Seafarers (STCW) 1995 that came into full

force on 1st February 2002. The legislation lays down the fundamental training

requirements for all people at sea who can affect the safety of the ship, its crew

and the environment. Each role onboard is classified as one degree of the

followings:

"Management level" - the level of responsibility associated with serving

as master, chief mate, chief engineer Officer or second engineer Officer

on board a seagoing ship;

"Operational level" - the level of responsibility associated with serving as

Officer in charge of a navigational or engineering watch or as designated

duty engineer for periodically unmanned machinery spaces or as radio

operator on board a seagoing ship, to maintain direct control over the

performance of all functions within the designated area of responsibility in

accordance with proper procedures and under the direction of an

individual serving in the management level for that area of responsibility;

"Support level" - the level of responsibility associated with performing

assigned tasks, duties or responsibilities on board a seagoing ship under

the direction of an individual serving in the operational or management

level.

4.2.2Technical Training

The ships either built or will be build in the future carry complex and technically

demanding equipment and systems. They also carry more manual and automatic

equipment, systems, procedures and processes, than ever before. The

international rules and regulations that need to be understood and complied with

are also being increased regularly. One area of ship design and technology that

continues apace is IT (see Technical Review). Computers get more complex and

programs get more encompassing. Computer training is almost non-existent in

offices and at sea, thus Officers, especially senior Officers, spend a large

proportion of the daily routine typing data into the terminal that will link the ship to

the “ship management” server”. “One point of entry” is he catchword for any

computerized management system, and the “one point” is normally the ship

logging ROB (oil remaining on board), day’s run, maintenance carried out, money

spent and all the other items that make up the operational finances of ship

management. That means that the person entering the data is one of the highest

paid members of the crew and the least trained in typing skills.

4.2.3 Commercial Training

There are no internationally recognized standards of marine commercial training

or qualifications. Many organizations run training seminars and workshops in a

multitude of subjects from ISM Code to safe handling of cargo; however, most

are not to a recognized standard. In addition there are recognized bodies such as

the Nautical Institute and the Institute of Chartered Shipbrokers that have well-

developed distance learning programs and college courses, syllabus and

qualifications, which are recognized in the international shipping industry. They

also have branches and examinations centers in many parts of the world.

4.2.4 Other Training

This sector of training covers everything else. It can be covered generically by

management studies and will allow good junior Officers to become better seniors.

In addition, this area covers what to say in a contingency, how is the master or chief

engineer to react if a mass of microphones are thrust at them as a consequence of an

incident. Do people learn marketing and public relation skills naturally? Finally, crews

are expected to interface with any number of cultures with whom they have no

similarities in food, ethics or language and the only common factor is they all work on

the same ship. In amongst this polyglot crew, the senior Officers of the ship are expected

to provide help and instruction, and keep the job going. Culture today plays a vital part in

the safety of the ship.

4.3 Training Options

International seafarer training should be reviewed with the intention of making it

more responsive to the ship's actual needs regarding technical, commercial,

personnel and management aspects of the ship's operation; the training courses

could be one of the followings:

Structured Course

The structured system of nautical training has always provided the most

common method of training for seafarers. With classes, a very strict

syllabus and, normally, much “homework” of previous examinations the

student often see it as a “crammer course” to get through the statutory

examinations and thus resume their career at sea. It is a difficult way of

providing education and development to participants. There are few, if

any, other careers where a person is still required to sit an examination

and, on passing, wait for a period of time before sitting the next part which

often goes over many aspects of the previous course, STCW 95

provisions.

Short course, Seminar and Workshops

Many regulatory qualifications can only be obtained through attendance at

a short course, e.g. Oil Tanker Safety, these 2 – 5 day course would

provide specific information and knowledge in the most economical period.

Often residential, that allows discussion to proceed after class hours, and

of smaller size, that allows everyone to participate, the courses can be run

easily in most locations.

Distance Learning

Many of the post certificates of competence and institute tuition is carried

out through distance learning. The commitment of a student to this type of

has to be of the highest order. Without commitment the student does not

complete the course at a financial loss to himself / herself and a sense of

failure with the course provider. Often distance learning is intermingled

with short sharp burst of seminar work at a convenient location.

Computer Based Training (CBT)

Many organizations are turning to CBT to provide a discrete individual

training tool. In a situation where a mass audience of more than one are

impossible CBT comes into its own by allowing each person. The

individual’s efforts and results are computer scored, identified and

recorded. The student knows how they are doing and can be made to

redo certain items that were below par. The final results are transmitted to

the master and office’s training function for appraisal. Subjects for this

type of training cover a wide area and there are many professional

companies that can produce bespoke / tailor made courses.

Mentoring

Possibly; the most effective ways of transferring practical knowledge and

skills, for seafarers, is to provide a one-to-one instructor that the student

can call upon for assistance and help.

Whether it is splicing a wire, taking a sight, or stripping a piece of

machinery, the learner will get a far better and safer feel for the process if

they see somebody do it well and then carries it out themselves.

Practical skills can only be perfected by practice.

The Availability And Training Of Seafarers – Page 65

5. Chapter Five: The Global Seafarers’ Labor Market

5.0 Introduction

It is argued in this submission that many and perhaps even most of the problems

relating to the world’s seafaring labor force have their origins in the twin process

of flagging out and deregulation which began in the later 1970s, gathered

momentum in the 1980s and, continued through into the 1990s, albeit at a

diminishing pace. After a discussion of regulatory systems in general and

maritime regulation in particular, the causes and consequences of deregulation

are then explored in some detail and with a focus on the development of a global

labor market for seafarers and its implications for training, education, certification

and employment conditions. On these issues there is some emphasis on the

need to develop optimally efficient crews.

5.1 Regulation and Deregulation

The term "regulation" as used here is borrowed from political science and has a

particular meaning. It refers to networks of institutions and organizations which,

through a common interest in some particular area of human activity, seek to

negotiate in appropriate forums and in voluntary association with the state, a

consensual system of law, rule, convention and customary practice.

Regulation’ therefore means the application of law, rule, convention and custom

as negotiated by the interested parties and as operated by organizations and

agencies commonly accepted as legitimate. This definition of regulation does of

course come close to specifying the essential conditions for a democratic society.

Without a legitimate rule of law, the possibility of negotiated settlements among

organized interested groups and the existence of rule-governed agencies

empowered to operationalize those negotiated settlements, there can be little

prospect of functioning democracy and every likelihood of disorder and

dislocation with unpredictable outcomes.

The forward-looking approach to training and education was barely launched

when it was undermined and eventually discarded by the fallout from the 1970s

crises and the ensuing search for cheap offshore solutions to seafaring labor.

The oil crises of the 1970s, the slump in world trade, a glut of ships and the

availability of offshore flags offering the symbols but none of the substance of

developed modern states, saw waves of ships moving into the unregulated space

of offshore. These one-off survival strategies provided short-term economic relief.

But the price was the dislocation of a regulatory system which had provided the

world with a labor force of steadily improving quality.

The consequences of the above mentioned economical crises had the dynamic

and transnationally influential for three main reasons:

1. the great majority of seafarers and ship-owners were citizens of the same

political entities (states or coalitions of states),

2. these entities were at comparable levels of technical, political and

administrative development; and

3. there were well-established routes for the transnational transfer of

technical, operational and socio-economic knowledge.

5.2 World Fleet

Lloyds Register Fairplay provided data for 47740 commercial vessels. Of these

vessels, 45.9% use a foreign flag. Larger and cargo vessels are more likely to

use a foreign flag than smaller and miscellaneous or passenger vessels. As a

consequence, the proportion of foreign flagged tonnage is even higher than is the

case for the number of vessels: Only 34.6% of the world’s GT use the national

flag, i.e., almost two out of three gross tonnes are registered under a foreign flag.

Big differences exist between operator countries. In terms of vessel numbers,

Japan is the most important operator country. Regarding GT, the Greek

operators control the biggest proportion of the world’s tonnage. Of the major 30

operator countries, Iran (96%) and India (88%) have the highest proportion of

nationally flagged GT, whereas operators based in Monaco (1%), Switzerland

(7%) and Belgium (9%) are least likely to use their national flag.

5.3 The Global Labor Market

The global labor market is now a reality for most of the world's seafarers except

for those working in the coastal and near-sea trades of the world's least

economically developed regions. There are, of course, still a largish number of

internationally trading, nationally-flagged ships crewed by nationals. But it is

surely a sign of the epoch that the PRC, now the only nation with a sizeable fleet

of merchant ships crewed by nationals who have been trained and certificated in

a well-regulated national system of state-funded colleges and universities, also

licenses manning agents to provide seafarers for foreign-flagged ships.

Elsewhere in the world, the national flag flown by a ship only corresponds with

the nationality of a significant proportion of the crew where employment costs are

considerably lower than those aboard internationally crewed ships. It is taken for

granted and therefore passes unremarked that in the worlds larger flag fleets -

Panama, Bahamas, Liberia, Cyprus and Malta - nationals of these flag states do

not feature in any known collections of manpower statistics. Furthermore, the

second register fleets and increasingly the first register fleets in most OECD

countries as well as those flagged in Hong Kong and Singapore, all have ships

where dwindling numbers of crew members are nationals. These well-known and

simple facts all signify enormous changes in the labor market for seafarers.

Mixed nationality crews are hardly a new phenomenon but what makes the

modern mixed nationality crew distinctive is the extent to which it is consciously

composed by crew managers’ evaluations of the level of competencies and the

probity of certification procedures on a country by country basis.

The efficiency of labor has two basic dimensions: technical competency

acquired through training, education and experience, and effort commitment

which is primarily determined by the social and economic conditions of

employment. In short, the efficiency of labor is determined by:

a) prior investment in training, education and productive experience and

b) current investment in conditions of employment.

These various aspects of labor efficiency were exactly the issues that regulatory

systems evolved to address because it was recognized that markets left to

themselves were unable to satisfactorily deliver the required efficiencies.

Fortunately for the future development of the shipping industry’s seafaring

labor market there are some indications that regulation is back on the agenda,

but before we examine these developments and discuss how they might be

further advanced, it might be useful to summarize the global labor market’s

principal contemporary characteristics:

seafarers of any nationality are potential employees

efficient transnational linkages between crew managers, manning agents

and national labor markets

no formal barriers to entry beyond certification compliance

widespread multinational crewing

stability depends upon the extent and timing of fluctuations in world trade

low and diminishing correspondence between flag of ship and crew

nationality

absence of system-wide regulation

"Optimally efficient labor" is not actually a term of common currency although it

could be reasonably taken as at least approximating to the implicit objectives of

the most advanced of the embedded maritime nations. Similar objectives may

also be inferred from those quality assurance protocols which on personnel

matters speak of aiming for excellence and developing and maximizing skills and

potentialities.

5.4 Global Regulation

Despite its initial economic attractiveness to shipowners, the resort to flags of

convenience and second registers as a means of avoiding labor market

regulation has not delivered any long term gains. Flagging out may have

provided shipowners with the opportunity to make short-term labor cost savings

but these savings could only be made once. Concurrent with the flagging out

process were substantial reductions in manning levels but here, too, there is no

longer any scope for further savings. The longer term consequence for the

shipping industry of flagging out and reduced manning levels is a manpower

crisis.

The embedded "western" maritime nations (sometimes misleadingly described

as the "traditional maritime nations"), whether large like Japan, the UK and

Norway or smaller such as Belgium, France and Australia, were all left with

considerable residues of skills and experience in seafaring and the politics and

procedures of regulation, but with greatly diminished fleets and skeletal

regulatory structures.

Comparison of Crewing Costs Under Different Regimes)Source : Lloyds Shipping Economist , Vol. 11 , No . 11, Nov. 1988(

6. Chapter Six: Two-way student movement between the VET

and higher Education

6.0 Introduction

Generally, research into student traffic between the VET (Vocational Education

and Training) and higher education sectors has focused on movement from VET,

and particularly the TAFE (Technical and Further Education) component of VET,

to higher education, i.e., unidirectional and perhaps “upwards” movement. Much

emphasis has been given to investigating articulation, credit transfer, recognition

of prior learning, general transition issues, and experiences and performance of

TAFE students transferring to universities.

Parkinson in his major national studies in the mid-1980’s, for example,

investigated a range of matters surrounding relationships between the TAFE and

higher education sectors and movement of students from TAFE to CAE’s and

universities (Parkinson (1985), Parkinson et al. (1986)).

The International Convention on Standards of Training, Certification and

Watchkeeping for Seafarers (STCW), 1978, as amended, sets the standards of

competence for seafarers internationally amongst its provisions is a requirement

for Parties to the Convention to communicate information to IMO on the

measures adopted to implement the Convention nationally. That information is

subject to scrutiny to ensure that the Convention is being given 'full and complete

effect' and, if this is so, the Party features on the "List of confirmed STCW

Parties" and "Information related to Reports of Independent Evaluation".

6.1 International Convention on Standards of Training,

Certification and Watchkeeping for Seafarers, 1978

6.1.1 Amendment Procedure

Amendments to the 1978 STCW Convention's technical Annex may be adopted

by a Conference of STCW Parties or by IMO's Maritime Safety Committee,

expanded to include all Contracting Parties, some of whom may not be members

of the Organization.

Amendments to the STCW Annex will normally enter into force one and a half

years after being communicated to all Parties unless, in the meantime, they are

rejected by one-third of the Parties or by Parties whose combined fleets

represent 50 per cent of world tonnage.

6.1.2 The 2010 amendments

The Manila amendments to the STCW Convention and Code were adopted on

25 June 2010, marking a major revision of the STCW Convention and Code. The

2010 amendments are set to enter into force on 1 January 2012 under the tacit

acceptance procedure and are aimed at bringing the Convention and Code up to

date with developments since they were initially adopted and to enable them to

address issues that are anticipated to emerge in the foreseeable future.

Amongst the amendments adopted, there are a number of important changes to

each chapter of the Convention and Code, including:

Improved measures to prevent fraudulent practices associated with

certificates of competency and strengthen the evaluation process

(monitoring of Parties' compliance with the Convention);

Revised requirements on hours of work and rest and new requirements for

the prevention of drug and alcohol abuse, as well as updated standards

relating to medical fitness standards for seafarers;

New certification requirements for able seafarers;

New requirements relating to training in modern technology such as

electronic charts and information systems (ECDIS);

New requirements for marine environment awareness training and training

in leadership and teamwork;

New training and certification requirements for electro-technical officers;

Updating of competence requirements for personnel serving on board all

types of tankers, including new requirements for personnel serving on

liquefied gas tankers;

New requirements for security training, as well as provisions to ensure that

seafarers are properly trained to cope if their ship comes under attack by

pirates;

Introduction of modern training methodology including distance learning

and web-based learning;

New training guidance for personnel serving on board ships operating in

polar waters; and

New training guidance for personnel operating Dynamic Positioning

Systems.

6.1.3 The 2006 amendments

The amendments added new minimum mandatory training and certification

requirements for persons to be designated as ship security officers (SSOs). The

amendments to the STCW Convention and to parts A and B of the STCW Code

include Requirements for the issue of certificates of proficiency for Ship Security

Officers; Specifications of minimum standards of proficiency for ship security

officers; and Guidance regarding training for Ship Security Officers.

Further amendments to part A of the STCW Code added additional training

requirements for the launching and recovery of fast rescue boats. The

amendments have been prepared in response to reports of injuries to seafarers

in numerous incidents involving the launching and recovery of fast rescue boats

in adverse weather conditions.

6.2 Ensuring compliance with the Convention

Parties to the Convention are required to provide detailed information to IMO

concerning administrative measures taken to ensure compliance with the

Convention. This represented the first time that IMO had been called upon to act

in relation to compliance and implementation - generally, implementation is down

to the flag States, while port State control also acts to ensure compliance. Under

Chapter I, regulation I/7 of the revised Convention, Parties are required to

provide detailed information to IMO concerning administrative measures taken to

ensure compliance with the Convention, education and training courses,

certification procedures and other factors relevant to implementation.

6.3 Port State control

The revised Chapter I includes enhanced procedures concerning the exercise of

port State to allow intervention in the case of deficiencies deemed to pose a

danger to persons, property or the environment (regulation I/4). This can take

place if certificates are not in order or if the ship is involved in a collision or

grounding, if there is an illegal discharge of substances (causing pollution) or if

the ship is manoeuvred in an erratic or unsafe manner, etc.

Other regulations in chapter I include:

1. Measures are introduced for watchkeeping personnel to prevent fatigue.

2. Parties are required to establish procedures for investigating acts by

persons to whom they have issued certificates that endanger safety or the

environment. Penalties and other disciplinary measures must be

prescribed and enforced where the Convention is not complied with.

3. Technical innovations, such as the use of simulators for training and

assessment purposes have been recognized. Simulators are mandatory

for training in the use of radar and automatic radar plotting aids (regulation

I/12 and section A-I/12 of the STCW Code).

4. Parties are required to ensure that training, certification and other

procedures are continuously monitored by means of a quality standards

system (regulation I/8).

5. Every master, officer and radio operator are required at intervals not

exceeding five years to meet the fitness standards and the levels of

professional competence contained in Section A-I/11 of the STCW Code.

In order to assess the need for revalidation of certificates after 1 February

2002, Parties must compare the standards of competence previously

required with those specified in the appropriate certificate in part A of the

STCW Code. If necessary, the holders of certificates may be required to

undergo training or refresher courses (regulation I/11).

6.4 The STCW Code

The regulations contained in the Convention are supported by sections in the STCW

Code. Generally speaking, the Convention contains basic requirements which are then

enlarged upon and explained in the Code.

6.4.1 Part A

This part of the Code is mandatory. The minimum standards of competence required for seagoing personnel are given in detail in a series of tables. Chapter II of the Code, for example, deals with standards regarding the master and deck department.

6.4.2 Part B

This part of the Code contains recommended guidance which is intended to help Parties

implement the Convention. The measures suggested are not mandatory and the examples

given are only intended to illustrate how certain Convention requirements may be

complied with. However, the recommendations in general represent an approach that has

been harmonized by discussions within IMO and consultation with other international

organizations.

6.5 The White List

The first so-called “White List” of countries deemed to be giving “full and complete

effect” to the revised STCW Convention (STCW 95) was published by IMO following

the 73rd session of the Organization’s Maritime Safety Committee (MSC), meeting from

27 November to 6 December 2000.

It is expected that ships flying flags of countries that are not on the White List will be

increasingly targeted by Port State Control inspectors. A Flag state Party that is on the

White List may, as a matter of policy, elect not to accept seafarers with certificates issued

by non White List countries for service on its ships. If it does accept such seafarers, they

will be required by 1 February 2002 also to have an endorsement, issued by the flag state,

to show that their certificate is recognized by the flag state.

6.5 Resolutions adopted by the 1978 Conference

The 1978 Conference which adopted the STCW Convention also adopted a number of

resolutions designed to back up the Convention itself. The resolutions, which are

recommendatory rather than mandatory, incorporate more details than some of the

Convention regulations.

6.5.1 Resolution 1

Basic principles to be observed in keeping a navigational watch. An annex contains a

recommendation on operational guidance for officers in charge of a navigational watch.

6.5.2 Resolution 2

Operational guidance for engineer officers in charge of an engineering watch. An annex

to the resolution deals with engineering watch underway and at an unsheltered anchorage.

6.5.3 Resolution 3

Principles and operational guidance for deck officers in charge of a watch in port.

Detailed recommendations are contained in an annex.

6.5.4 Resolution 4

Principles and operational guidance for engineer officers in charge of an engineering

watch in port. Recommendations are in an annex.

6.5.5 Resolution 5

Basic guidelines and operational guidance relating to safety radio watchkeeping and

maintenance for radio officers. A comprehensive annex is divided into basic guidelines

and safety radio watchkeeping and maintenance.

6.5.6 Resolution 6

Basic guidelines and operational guidance relating to safety radio watchkeeping for radio

telephone operators.

6.5.7 Resolution 7

Radio operators. Four recommendations are annexed to this resolution dealing with (i)

minimum requirements for certification of radio officers; (ii) minimum requirements to

ensure the continued proficiency and updating of knowledge for radio operators; (iii)

basic guidelines and operational guidance relating to safety radio watchkeeping and

maintenance for radio operators; and (iv) training for radio operators.

6.5.8 Resolution 8

Additional training for ratings forming part of a navigational watch. Recommends that

such ratings be trained in use and operation of appropriate bridge equipment and basic

requirements for the prevention of pollution.

6.5.9 Resolution 9

Minimum requirements for a rating nominated as the assistant to the engineer officer in

charge of the watch. Recognizes that suitable training arrangements are not widely

available. Detailed requirements are contained in an annex.

6.5.10 Resolution 10

Training and qualifications of officers and ratings of oil tankers. Refers to resolution 8

adopted by the International Conference on Tanker Safety and Pollution Prevention, 1978

(TSPP), which deals with the improvement of standards of crews on tankers.

Recommendation in annex.

6.5.11 Resolution 11

Training and qualifications of officers and ratings of chemical tankers.

6.5.12 Resolution 12

Training and qualifications of masters, officers and ratings of liquefied gas tankers.

6.5.13 Resolution 13

Training and qualifications of officers and ratings of ships carrying dangerous and

hazardous cargo other than in bulk.

6.5.14 Resolution 14

Training for radio officers. Detailed recommendations in annex.

6.5.15 Resolution 15

Training for radiotelephone operators

6.5.16 Resolution 16

Technical assistance for the training and qualifications of masters and other responsible

personnel of oil, chemical and liquefied gas tankers. Refers to requirements in several

Convention regulations and recognizes that training facilities may be limited in some

countries. Urges Governments which can provide assistance to do so.· Back to top

6.5.17 Resolution 17

Additional training for masters and chief mates of large ships and of ships with unusual

manoeuvring characteristics. Is designed to assist those moving to ships of this type from

smaller vessels, where characteristics may be quite different.

6.5.18 Resolution 18

Radar simulator training. Recommends that such training be given to all masters and deck

officers.

6.5.19 Resolution 19

Training of seafarers in personal survival techniques. A recommendation is annexed.

6.5.20 Resolution 20

Training in the use of collision avoidance aids.

6.5.21 Resolution 21

International Certificate of Competency. Invites IMO to develop a standard form and title

for this certificate.

6.5.22 Resolution 22

Human relationships. Emphasizes the importance to safety of good human relationships

between seafarers on board.

6.5.23 Resolution 23

Promotion of technical co-operation. Records appreciation of IMO's work in assisting

developing countries to establish maritime training facilities in conformity with global

standards of training and invites the organization to intensify its efforts with a view to

promoting universal acceptance and implementation of the STCW Convention.

6.6 IMO Model Courses

The program of model training courses developed out of suggestions from a

number of IMO Member Governments, following the adoption of the International

Convention on Standards of Training, Certification and Watchkeeping for

Seafarers, (STCW), 1978, as amended.

Assisted by contributions from various Governments, IMO has designed the

series of courses to help implement this Convention and, further, to facilitate

access to the knowledge and skills demanded by increasingly sophisticated

maritime technology. The course introduced for MET students should full fill the

followings:

The courses are flexible in application: maritime institutes and their

teaching staff can use them in organizing and introducing new courses or

in enhancing, updating or supplementing existing training material.

The model courses each include a course framework (detailing the scope,

objective, entry standards, and other information about the course), a

course outline (timetable), a detailed teaching syllabus (including the

learning objectives that should have been achieved when the course has

been completed by students), guidance notes for the instructor and a

summary of how students should be evaluated.

Many courses include background information for students in a

compendium. For some titles these compendia are sold separately from

the course. Model courses related to the STCW Convention were revised

and updated after the major revision of the Convention in 1995.

Consequent to the adoption of the Manila Amendments in 2010 to the

STCW Convention and Code, some of the model courses related to the

STCW Convention and Code are being revised and updated.

6.8 Maritime Training Institutions

The STCW Convention requires that training leading to the issue of a certificate

is "approved". The International Maritime Organization does not approve any

training courses or institutes. This is a privilege and responsibility of Member

Governments who are Parties to the STCW Convention.

Approval is normally given by the Maritime Administration of an STCW

Party in accordance with the Convention requirements. Amongst other things, the

Convention requires that training and assessment of seafarers are administered,

supervised and monitored in accordance with the provisions of the STCW Code;

and those responsible for training and assessment of competence of seafarers

are appropriately qualified in accordance with the provisions of the Code.

The initial approval of a maritime training program by a Maritime Administration

might include assessment of items such as those listed below in order to ensure

that the training institute or training program meet the appropriate STCW

Convention standards:

Scope and objectives of the training - e.g. to meet the requirements of

STCW regulation II/1.

Minimum entry standards - age, sea experience, other training, medical

fitness etc.

Intake limitations, student/staff ratio etc.

Staff qualifications, experience in subject, teaching skills, assessment

skills.

Facilities and equipment necessary to meet objectives.

The written programs, syllabus, timetable and course material.

Method of training: lectures, practical, videos etc and percentage of time

devoted to each.

Assessment: methods: examination, practical, continuous assessment etc.

Certification to be issued on completion to meet STCW requirements.

Maintenance of student and other records.

Security of information.

Quality standards system requirements to ensure standards are

maintained.