It’s the combination of a general shortage of competent seafarers & deep-pocket Ship owners, says the study

Padmesh Prabhune

According to a recent survey by crewing specialist Danica, salaries for seafarers have increased by 10%-15%, since 2021. The results indicate that the market for crew employment is shifting in favour of seafarers, especially in senior officer ranks, where salaries have increased across nationalities by 10% to 15% since 2021.

Salary increases of 10% result from high demand for specific ranks, like fitters, cooks, and bosuns. Due to a severe shortage, wages for Ukrainian fitters have increased by up to 30%.

Also, senior officers on dry cargo ships have had exceptionally rapid wage increases. However while the wage gap is narrowing between Filipino and Eastern European officers, senior seafarers especially Indian officers on dry cargo ships are currently paid 10% more than their Eastern European colleagues.

The survey on the other hand suggests; abundant job offers give seafarers the freedom to choose carefully.

The survey indicates that salary increases are the main factor influencing seafarers to switch shipping companies perhaps with a shorter term on-board period contract.

Some 35% of crew who changed employer recently did so for a higher salary, although 26% moved for a more suitable joining time. And 98% or respondents said they check vacancies while home on leave.

The CEO of Danica Crewing Specialists, Henrik Jensen, notes that there is a pay spiral similar to what was seen before the financial crisis and attributes it to a lack of qualified seafarers and better financial circumstances for ship owners.

Jensen said, “The root cause for these wage increases is the combination of a general shortage of very competent seafarers and a better financial situation for most vessel owners which is making employers more generous with remuneration.”

“And, with a surplus of job offers, seafarers can afford to be picky,” he added.

The survey also indicates a rise in shorter period on-board contracts. Compared to the last Danica survey (2021) the number of seafarers with a contract period of 5-7 months has dropped and the group with a contract period of 3-5 months has increased.

However according to experts, in 2024, the upward salary trends might encounter obstacles as bulkers and container owners might have to make financial cuts due to shipping rate challenges. Jensen speculates that salary increases for seafarers may level out in the upcoming year.

The industry’s transition to alternative fuels may impact future salary dynamics, as also the need for seafarers skilled in operating vessels equipped with fuel-saving devices.

Marex Media