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Industry Analysis: Philippines Maritime Manning Industry
Industry Analysis: Philippines Maritime Manning Industry
Industry Analysis: Philippines Maritime Manning Industry
Submitted by:
Baby Nina Alfonso
Lorraine Aquino
Kristel Lynn Garcia
Jeffrey Julian
Jeanelyn Lulu
Estrella Que
Sherwin Rafael
Amy Sablaon
December 2016
Maritime transport is the most efficient and cost effective method of transportation either
domestically or internationally. Around 80% of global trade by volume and over 70% by value is
carried by sea, as per the UNCTAD estimate. Because of the high percentage of domestic and
international commerce, travel and tourism are by air and sea, the aviation and maritime
transportation has become increasingly critical to growth and competitiveness. The maritime
industry is a vital component in attaining growth to the Philippines socio-economic growth.
Per the NTPP study estimate, in 2006, the predominant mode of transport is by road carrying
about 1.71 billion passengers (93.14 %) and 25.9 million tons of freight (58 %), with water
transport at 1.22 % and 42 %, respectively. In 2012, domestic shipping posted 74 million tons of
cargoes and 50 million passengers. Seafarers remittances US$4.8 billion also contributed to
the Philippine economy.
90% of the volume of the trade in the Philippines is carried at sea. There are around 30%
compromised Filipino seafarers of the ships manned by Seafarers worldwide. 400,000 Filipino
seafarers deployed annually with a ratio of 1 out of 5 seamen in the world are Filipino. From
1996, there were 250,000 Filipino seafarers. Wiith the growth rate of 84% after 17 years, last
2013 total of 400,000 Filipino seafarers.
The International Maritime Organization (IMO) Is the United Nations specialized agency with
responsibility for the safety and security of shipping and the prevention of marine pollution by
ships.
The International Maritime Organization (IMO), known as the Inter-Governmental Maritime
Consultative Organization (IMCO) until 1982 was established in Geneva in 1948 and came into
force ten years later, meeting for the first time in 1959.
Headquartered in London, United Kingdom, the IMO is a specialised agency of the United
Nations with 171 Member States and three Associate Members.[3] The IMO's primary purpose
is to develop and maintain a comprehensive regulatory framework for shipping and its remit
today includes safety, environmental concerns, legal matters, technical co-operation, maritime
security and the efficiency of shipping. IMO is governed by an Assembly of members and is
financially administered by a Council of members elected from the Assembly. The work of IMO
is conducted through five committees and these are supported by technical subcommittees.
Member organisations of the UN organizational family may observe the proceedings of the IMO.
Observer status is granted to qualified non-governmental organisations.
IMO is supported by a permanent secretariat of employees who are representative of its
members. The secretariat is composed of a Secretary-General who is periodically elected by
the Assembly, and various divisions such as those for marine safety, environmental protection,
and a conference section.
IMO is the source of approximately 60 legal instruments that guide the regulatory development
of its member states to improve safety at sea, facilitate trade among seafaring states and
protect the maritime environment. The most well-known is the International Convention for the
Safety of Life at Sea (SOLAS), as well as International Convention on Oil Pollution
Preparedness, Response and Co-operation (OPRC). Others include the International Oil
Pollution Compensation Funds. It also functions as a depository of yet to be ratified treaties,
such as the International Convention on Liability and Compensation for Damage in Connection
with the Carriage of Hazardous and Noxious Substances by Sea, 1996 (HNS Convention) and
Nairobi International Convention of Removal of Wrecks (2007).
IMO regularly enacts regulations, which are broadly enforced by national and local maritime
authorities in member countries, such as the International Regulations for Preventing Collisions
at Sea (COLREG). The IMO has also enacted a Port State Control (PSC) authority, allowing
domestic maritime authorities such as coast guards to inspect foreign-flag ships calling at ports
of the many port states. Memoranda of Understanding (protocols) were signed by some
countries unifying Port State Control procedures among the signatories.
On the other hand, the International Labor Organization was created in 1919 to drive social
equity and add to the arrangement of general and enduring peace through the advancement of
social and financial prosperity of the seafarers by respectable expectations for everyday
comforts, appropriate states of work and pay, and satisfactory business openings.
The principle exercises of the ILO are:
1. Formulation of a universal plan to enhance working and living conditions, upgrade
business openings, and advance seafarers' rights;
2. Creation of universal work benchmarks for national powers to apply in putting this
convention to activity
3. Implementation of a program of universal specialized collaboration
4. Use of training education, research and publishing activities to help advance all these
efforts.
International Labor Organization convention concerning the recruitment and placement of
seafarers
Article 2 of the ILO empowers the member state to enact a national policy for the operation of a
free public recruitment and placement service to meet the needs of the seafarers and ship
owners, however, this can be worked but the Government of private associations. The
Economic Variables
The creation of an international market for the maritime labor paved the way to the rise of the
Philippine maritime manning industry. The industry is directly affected by the economic status of
the country where the ship-owners and vessel companies reside. The economic situation forced
some of the ship operating companies to adopt cost-cutting measures by crewing their ships
with national from low wage, developing nations, while others reduced the number of their shore
side personnel. In addition automation on board ships and other advanced technologies in ship
design aimed at labor savings were used. Unfortunately, unions in all the affected countries had
no option than to cooperate with the shipping companies to preserve some jobs.
Technological Variables
Recent record shows that Philippines is the largest supplier of seafarers in the world. (Marina,
2014). The country has about 475,000 registered seamen, out of which 200,000 are employed
in foreign ships. The rest are either with the domestic fleet of are awaiting employment
So as to meet the required principles of STCW 95 tradition, the nation has established
measures to enhance the oceanic organization and arrangement of preparing and accreditation.
This incorporate the conclusion of substandard schools and training centers, while existing ones
are upgraded with modern facilities and equipment and the curriculum created in accordance
with the SCTW 95 norms.
The capacity of Filipinos to speak good English language, their fondness for the ocean, their
capacity to function excellently with different nationalities show a high level of loyalty to their
employers places them at advantage over other nationalities.
To improve the competitiveness of Filipino seafarers, the Government through the local crewing
industry has now revised the standard seafarers contract to discourage the filing of tort claims
overseas. In addition, the crewing industry is funding government project of establishing an
integrated e-documentation system, as well as one-stop documentation centers to reduce
bureaucratic red tape and irregularities.
Task Environment
The development of the Philippine Maritime Industry ties up to national economic growth in
terms of investment opportunities, employment/job creation, industrial development, increased
government revenues, among others, as well as the enhanced role and image of the Philippines
in the international maritime community.
Growth in the maritime industry links up to the increasing demand in manpower. There are 408
valid POEA licensed recruitment Maritime Manning companies in the Philippines as of 2014.
Industry services
Maritime Manning Industry typically offers certified and experienced personnel to number of
companies operating to vessels, ship owner, or charter; whether nautical, technical, hotel and
catering management services. Company gives training and education to aspiring employees.
Aside from recruitment, Maritime Manning Industry also offers high-quality management and
corporate solutions, new building management and ship management.
Competitive Environment
Stakeholder
Major Players
1. Magsaysay MOL Maritime, Inc
Established in the Philippines in 1948. Initially providing Filipino seafarers to just 57 vessels in
June 1997, Magsaysay MOL today deploys more than 4,000 seafarers to 176 MOL vessels,
serving the crew management needs of its 10 MOL Principals located in Japan, Hongkong,
Singapore, Oman and Netherlands.
The company aims to man 200 vessels and target to build a solid pool of more than 5,000
seafarers.
2. CF Sharp Crew Management, Inc.
The C.F. SHARP GROUP was established in 1937. In the 1960s, Don Antonio V. Rocha bought
out the interests of Mr. Chester F. Sharp and the Company became a 100% Filipino owned
corporation. A decade later Don Antonio retired and turned over the day to day management of
the Group to his sons.
Today, the C.F. SHARP GROUP has expanded from its original business of Liner and
Husbanding Agencies, to being a leader in the fields of Crewing, Travel, Freight Forwarding,
Brokerage, Air Cargo, Airline GSA, Land-based Recruiting and Training.
Maritime Manning Agency provide additional skills training aside from the mandated training by
Marina. This is to ensure competitive advantage and to meet the client's expectations and
standard procedures. Specialized training such as Deck Courses, Dynamic Positioning, Engine
Room Training, Soft Skills, CBT Training and others.
Partnership
Academy providers of highly technical graduates such as culinary school, front office, maritime
services, etc. create partnership with maritime manning agencies. This strategy would give both
parties to attract the right people to the right job by academy providers teaching technical skills
to the possible employees of the maritime agency.
SWOT Analysis
Strengths:
The Philippines as a quality and strong sovereign flag of choice; global request for Filipino
maritime personnel.
The new nations for recruitment has over years spent much effort also to educate and certify
higher officers. Officers are now recruited to international ships both from Eastern Europe, India
and the Philippines.
Tradition of quality personnel; well-educated and experienced officers
Sustained development of globally-competitive maritime manpower
Weaknesses:
Limited cooperation between crewing agencies and ship operators makes it difficult to plan for
long term employment and career development for the individual seafarer.
Today seafarers are experiencing some difficulties in their line of work. There is no possibility for
any kind of career planning and implementation of long term contracts. For the time being most
of the seafarers are not employed on long term base. The timeline of the employment contract
and career development is normally a part of the contract only for key personnel like top officers
and not for ratings that have ambitions to build a seafarer career.
Opportunities:
Please note: Let us keep all the references that we have and data from 1996 to 2013 only.
Also we need to finish the draft document within this week so we can ask sherwin to
double check.
References
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