Indian shipping officers may be riding the gravy train. Salaries of senior officers have doubled to $10,000 per month in the last one year as the industry faces severe shortage of officers, but the good times may not last for ever with large-scale influx of Chinese seamen.
The shortage of skilled personnel worldwide is expected to touch 45,000 in another five years, says a senior official of Indian National Shipowners' Association. Indian officers have been in great demand as they have better English-speaking skills and are technically more competent than their Chinese and Filipino counterparts.
But, Indians may have gone overboard in demanding high salaries and dictating terms on the duration of contract, type of vessels, etc, the INSA official said.
As a result, many international shipowners have started recruiting other nationals despite their poorer language and technical skills.
A senior Chinese seafarer will settle for $3,500 per month against $8,000 demanded by his Indian counterpart.
A senior official from the Hong Kong-based Wallem Maritime Training Centre, which manages over 135 vessels, said China is recruiting over 800 cadets a year at junior level and the number is going to double next year. He said the Indian seafarers were lagging behind on the credibility front.
"The Chinese are picking up in all spheres. They are improving their technical standards as well as their English. Now we have a vessel which is fully managed by Chinese personnel and we have already set up a training centre in China," he said.
A leading shipping analyst cautioned that Indian officers may not be able to be overprice themselves for longer period with more Chinese recruits taking place.
Besides, a slump in the ocean freight rates will also rebound forcing the Indian officers to get off the high horse. INSA Secretary General SS Kulkarni said, "Employing Indian officer is a tough proposition for domestic shipowners as they are demanding higher wages. The tax structure is only making the problem worse."
According to Great Eastern Shipping Company Ltd Executive Chairman K M Sheth, the shortage of marine officers has been acute especially in the first four categories including Master, Chief Engineer, Chief Officers and Second Engineers. The current shortage in these four categories alone is around 600 officers.
"This situation is expected to further aggravate with rising domestic tonnage, a non conducive taxation regime with regard to seafarers taxation and shallow certificate spectrum resulting in restricted recognition of certificates of competencies by the state administration," Sheth said.
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