Shipping Industry Struggles To Recruit Skilled Seafarers Despite Pay Hikes

Seafarer retention rates have improved over the past year, with nearly 90% of shipping companies raising crew salaries in 2024, according to the latest Crew Managers’ Survey by Danica Crewing Specialists.

The survey revealed that companies were more generous with wage hikes than in 2023, except for junior ratings. Despite better retention, concerns remain over a shortage of competent seafarers, as reported by industry experts.

While fewer companies found recruitment worsening in 2024 compared to the previous year, nearly one-third (31%) still reported difficulties in hiring skilled crew members.

The survey, which gathered responses from in-house crew managers at shipowning and ship management companies, found that:

75% of senior officers received salary increases in 2024, up from 63% in 2023.

67% of junior officers saw wage hikes, compared to 59% in the previous year.

65% of senior ratings (Bosun, Fitter, Cook) benefitted from pay rises, rising from 54% in 2023.

Over 50% of other ratings received pay increases in both 2023 and 2024,

As a result, seafarer turnover has generally declined, with 41% of crew managers reporting an improvement in retention rates over the past year. This is a notable increase from 29% in the previous survey period.

At the same time, 23% of companies still experienced worsening retention rates, though this was an improvement from 36% in 2023.

While salary increases have helped stabilise the workforce, the industry still faces challenges in recruiting skilled professionals. Survey data reveal that while retention improved, many crew managers struggled to find experienced crew members capable of handling modern shipping demands.

Industry experts say that the issue is not a lack of seafarers but rather a shortage of competent ones. According to the report, some crew managers believe that the difficulty in hiring qualified personnel stems from ongoing changes in the shipping sector and evolving crewing strategies.

More shipping companies are diversifying their recruitment strategies to tackle workforce shortages.

The survey found that 57% of companies planned to recruit from additional nationalities in 2024, up from 42% in 2023. Experts say that fewer companies now rely on seafarers from a single nationality, instead opting for a broader, more global recruitment approach.

The report also says that 80% of crew managers and directors now report directly to top management, ranking at the same level as technical and financial heads.

While the retention situation has improved, managing crewing operations remains complex. Danica’s previous survey in 2023 found that crew managers were struggling more than in the past.

In 2024, 38% of respondents said their workload had remained the same, while only 4% felt their job had become easier.

Reference: ship management international