The chief executive of one of the world’s largest shipmanagement companies believes the crewing crisis compounded by the pandemic has eased.
Columbia Group’s Mark O’Neil said since the pandemic personnel became more demanding but were now more interested in the quality of their employer.
“Shipping was the best performing industrial and transport sector during the pandemic,” O’Neil told Lloyd’s List in an interview. “No doubt after the pandemic there was a necessary backlash by crew about wages and conditions. Seafarers have now gained the attention they deserved.”
He added that seafarers were now much more demanding of competitive compensation packages, with employers unable to get away with paying below-market salaries.
Nevertheless, the focus simply on wages has started to change.
“I really do feel the majority of the crewing pool has seen a maturity — it’s not just about where you can get the most money anymore,” said O’Neil.
He said the quality of employer was now a priority for many seafarers.
“Seafarers are asking does the employer have my best interests at heart? Even if they pay a few dollars more will the shipowner look after me in good times and bad?” said O’Neil.
He admitted there was a concerning spike in wages following the pandemic, as seafarers held the upper hand during a shortage of crew. However, wage increase demands have eased of late.
“Most shipowners have had to follow the surge in compensation but companies have now paused. It’s now less about the money but how seafarers are treated. Everybody has had to make themselves a better employer,” said O’Neil.
Columbia Group provides full shipmanagement services, via its Columbia Shipmanagement subsidiary, for 320 ships and crew management for a further 130 vessels, and employs 21,000 seafarers.
The company recently implemented changes within its seafarer human resources department to align it to its shore-based HR processes and systems.
“Seafarers want to be treated the same as shore staff and expect a career path that leads from the sea to shore positions,” said O’Neil.
To maintain personnel, careers must be properly managed to allow, for example, a rating to become a master and later have a career ashore with the same company. O’Neil said CSM aimed to foster being part of a “family”.
“When I do a video for crew to communicate important developments we emphasise a family ethos. If anybody is in trouble we aim to help out. I think if seafarers feel they get that buy-in they will not leave you for $10 dollars a week more,” said O’Neil.
He highlighted CSM’s investment in mental health assistance for seafarers and their families, and trauma counselling. As the company employs Ukrainian seafarers, CSM provided such services for those personally affected by the Ukraine crisis.
“Seafarer assistance has become more sophisticated and crew have become more discerning. CSM has had to work harder as it’s not enough to just have a family ethos,” said O’Neil.
He cited the roll out of e-learning programmes for seafarers, partnerships with catering companies to improve meals on board and tailor them for multinational crews.
O’Neil also highlighted a more sophisticated approach to onboard fitness.
“Gyms on board ships have to be fitted with the latest equipment. Gone are the days when just an old exercise bike would do.”
Onboard wi-fi, without restrictions, is also becoming a requirement of more discerning seafarers.
“Most seafarers won’t step on board the ship unless there is unlimited wi-fi on board,” O’Neil said.
Columbia Group’s shipowning division, Schoeller Holdings, recently introduced newbuildings which have been fitted with dedicated berths for cadets.
O’Neil warned, however, that sourcing the best people remained the biggest challenge for the shipping industry.
“People are the answer to so many questions,” he said.
“If we continue to get that right the industry can take on more or less anything. Shipping has to keep up with the pace of change, keep up with the bright young things, and continue to roll with the punches that are coming its way.”
