LESSON 1

APPRECIATE SHIPPING CAREER AS A MARITIME PROFESSION (ASCM

Time Allotment: 4 Hours

PERFORMANCE STANDARD

You shall be able to understand the shipping career as a maritime profession

LEARNING COMPETENCIES

At the end of the lesson, you will have been able to:

1. Discuss prospects in a shipping career

1.1 Discuss other job opportunities in the merchant marine profession

a. Shipbuilding and repair
b. Ship operations and management
c. Port operations and management
d. Ship surveying and inspection
e. Offshore industry
f. Maritime education and training
g. Philippine Navy
h. Philippine Coast Guard
1.2 Discuss the BIMCO / ICS Manpower Report 2015
a. Baltic and International Maritime Council (BIMCO)
b. The Philippines as the leading supplier of seafarers
1.3 Explain the benefits of a shipping career
a. High wages
b. Tax exemption
c. Expense free (travel, accommodation, and food)
d. Meet people of different cultures
e. Learn different languages

TECHNICAL VOCABULARY

charter – is a legal document that formally establishes a corporate entity.

reserve for use or contract of lease. (Kenton 2019)

salvage– to rescue or save especially from wreckage or ruin. (Merriam webster 2020)

seafarer – A person who regularly travels by sea; a sailor, a sailor or a mariner. (lexico.com, UK
dictionary 2020)

ratings – member of the crew, other than the master and the officers

tonnage – shipping considered in terms of total carrying capacity

 baccalaureate – Baccalaureate comes from the Latin word "baccalarius," meaning "bachelor." Soa
baccalaureate degree means the university degree known as a bachelor's degree. This degree is an
award that signifies a certain level of educational achievement through a university or college
program. A student may attain a bachelor's degree in many subjects at colleges and universities
around the world. (Jennifer Brozak 2019)
dry cargo vessels – used to carry solid dry goods such as metal ores, coal, steel products,
forest products, etc.

remittance – money (salary) sent by overseas workers to the Philippines

WHAT DO YOU NEED TO KNOW?

I. Job Opportunities in the Merchant Marine Profession

Filipinos have been trading since the time of our early ancestors. Goods have been traded with other
countries even before the invention of steam engines. Just as Ferdinand Magellan sailed the seas and landed
in the Philippines in search of spices, modern-day shipping still uses the sea as primary means of
transporting goods. Shipping significantly contributes to the economic development of nations around the
world through seaborne import and export.

According to the International Chamber Shipping, the international shipping industry carries
around 90% of world trade. This means that the phone you are using or the shoes you are wearing wear
most probably shipped by sea. The prospects for the industry’s growth continue to be strong. With over
68,000 merchant ships trading internationally, this industry remains to be a reliable and sustainable source
of employment.

Shipping does not only mean the transfer of goods of people to and from places. Among the
different aspects of shipping include business management, construction, design, and even public service.
Different opportunities in the merchant marine profession could meet both your wants and the needs of the
market. These include the following:

A. Shipbuilding and Repair

New ships have to be built to meet the growing demand for international trade. This makes shipping
an attractive industry for developing nations especially in the Asia-Pacific region where nations are well-
positioned to supply large vessels. The Philippines is the fourth largest shipbuilder, next to Korea, China,
and Japan. The construction of ships and other floating objects is done in specialized facilities known as a
shipyard. Building ships requires a huge number of manpower with special skills, such as welding and
operating heavy machinery.

Every ship has too regularly gone for dry docking for major repairs and necessary maintenance
works. These ships have to go inside a special docking facility where they can position the ships on blocks
and pump the water out. Workers can then do maintenance and repairs that cannot be done while the ships
are afloat and in service.

B. Ship Operations and Management

 Operating ships is done not only by the seafarer onboard but also with the support of a shore-based
management team. The management team provides them with support and technical supervision throughout
the charter of the vessel on behalf of the shipowner. The management company may also offer other services
like inspection before purchase, supervision during building, crew management, provision of stores and
parts, and other operational requirements. These are carried out by designated personnel in the various
department within the ship management company such as sales, engineering, finance, administration, and
marine affairs departments.

While shipboard crew members make sure the ship reaches its destination safely and efficiently with
the cargo intact, the ship managers ensure that the ship will continuously have customers by managing its
business aspects. The list below shows the business management structure of a typical ship management
company.

• Shipbuilding
• Crew management, manning
• The operation, chartering, cargo handling
• Marine skills such as navigation, stowage, etc.
• Maintenance and repair, drydocking, inspection
• Hull and machinery insurance, cargo insurance
• Accounting and settlements
• Provision of lubricating oils and fuel oils
• Purchase and supply of material

C. Port Operation and Management

Many Asia Pacific nations have fast-developing ports and improving infrastructure providing a
gateway to ships from all over the world. Port operations are necessary to enable marine trade between
these nations. Operators have to ensure smooth port operations and avoid congestion in the harbor by
following sets of policies, reforms, and regulations that influence the infrastructure and operations of port
facilities including shipping services.

The amount of time a ship spends in port has to be minimized. Port operators manage the movement
of cargo containers between cargo ships, trucks, and freight trains and optimizing the flow of goods through
the customs. Maintaining efficiency involves managing and upgrading port and facilities, communication
equipment, computer systems, and dockworkers’ union contracts. Port operators also manage safety and
port security while harbor masters regulate how vessels conduct their navigation in port.

D. Ship surveying and inspection

The standards of operating and maintaining ships are very high. Companies follow strict
international regulations and legislation and from the construction of the vessel down to the details of its
operation. To make sure that these ships follow the standards, regular detailed inspection has to be done to
determine the current condition and fitness of a commercial ship for its intended use. Marine surveys
included the structure, machinery, and equipment, ( e.g, navigational, safety, radio, etc.), and general
condition of a vessel and/ or cargo, as well as judging materials on board and their conditions. Marine
surveyors conduct inspections, surveys, or examinations of marine vessels to assess, monitor, and report
their condition and the cargo, including damages caused to both vessels and the goods carried on board.
Marine surveyors also ensure compliance with various standards or specifications by inspecting equipment
intended for new or existing vessels. They are highly qualified and technically sound and usually selected
after thorough evaluation procedures and recommendatory training considering that vessels range from
small ferries huge crude oil carries and cruise liner.

E. Offshore Industry

Human’s thirst for energy continues to grow and the demand for oil and gas grows with it. Modern
technology and techniques allow the extraction of these resources from the depths of the oceans after nearly
depleting the natural resources from the land. This results in the rising cost of oil and gas prices, holding
great promises for the industry in the coming years.

The offshore Industry is either an offshore oil and gas industry of an offshore wind energy industry.
Offshore platforms are structures used for drilling and extracting gas and oil from wells, located deep
beneath the ocean floors. Strongly built to withstand the forces of nature and designed to ensure the test of
time, these platforms can be operated at depths from 200 to 12,000 ft. they also have processing and storage
facilities, as well as accommodation for the crew.

The offshore industry has a wide range of occupations for entry-level as well as experienced
professionals. The jobs can be extremely challenging and demand long working hours in harsh conditions
but are very well compensated. Offshore occupations include different levels of employment in the fields
of oil and gas production and management. The main areas of operations include drilling, rigging,
surveying, piping, welding, diving, quality, checks, as well as health and safety and cooking.

F. Maritime Education and Training

Filipino seafarer makes up about 30 % of the world’s merchant marine fleet. Along with the thriving
shipping industry, maritime education and training also thrive with it. Maritime Industry Authority
(MARINA) recognized more than 70 maritime higher education institutions and over 100 accredited
training centers are offering approved courses in 2015. The purpose of maritime education and training is
to meet the demand and supply of manpower for the shipping industry. Aimed at establishing the
fundamentals of the seafarer's discipline and providing maritime and academic programs and vocational
training, Maritime Education and Training (MET) covers a wide spectrum of training institutions that
range from those delivering the short-time course to baccalaureate degree covers a wide spectrum of
training institutions that range from those delivering short-time courses to baccalaureate degrees and
postgraduate studies.

Maritime education and training remain to be one of the preferred shore-based employment for
vacationing seafarers. Since seafarers are not trained as proper educators, they are provided with instructors
training adopted from the International Maritime Organization (IMO) model course 6.09 strict compliance
with statutory and regulatory requirements are kept to ensure quality education and training that is at par
with international standards.

G. Philippine Navy
 A public service is also an option in a maritime career in the field of the Armed Forces of the
Philippines (AFP). The Philippine Navy is the naval warfare service with the mission: “To organize, train,
equip, maintain, develop, and deploy forces for prompt and sustained naval and maritime operations in
support of the Unified Commands in the accomplishment of the AFP mission.” The branch is empowered
to assist in the enforcement of laws and regulations about navigation, immigration, customs revenue,
quarantine, fishing, and neutrality in the territorial and contiguous waters of the Philippine Archipelago.
They are also tasked to develop, in coordination with the other major services and area commands the
doctrines, procedures, and naval equipment for joint operations, and the doctrines and procedures for
amphibious operations.

H. Philippines Coast Guard

The Philippines’ Coast Guard is mandated and responsible to perform maritime search and rescue,
maritime law enforcement, maritime safety, maritime environmental protection, and maritime security. It
is an agency under the Department of Transportation and Communication (DOTC) that conducts maritime
security operations and safeguards life and property at sea.

The Philippines Coast Guard takes pride in fulfilling their mission that states: We are a uniformed
armed service that implements and enforces all national and international maritime safety, security, and
Maritime Transportation Network objectives, national security, and economic development of the
Philippines.
II.BIMCO / ICS Manpower Report 2015

Baltic and International Maritime Council (BIMCO) is the world’s largest international shipping
association and an independent global transport organization, with a membership composed of ship owners,
managers, brokers, agents, and many other stakeholders with interests in the shipping business. BIMCO the
world’s largest private shipping organization by representing more than 2,700 of the world's shipping
companies The members embody around 450 million Deadweight tonnages (DWT) which are 60% of the
total cargo carrying capacity available. DWT is a measure of how much weight a ship could safely bear.
BIMCO headquarter building is located in Bagsvaerd, Denmark.

The main objective of BIMCO is to act on behalf of its global membership to endorse higher
standards as well as development and promotion of fair and equitable international shipping policy

BIMCO is regarded as a Non-Governmental Organization (NGO), holds observer status with many
United Nations organizations, and is in close dialogue with maritime administrations, regulatory
institutions, and other stakeholders within the EU, the USA, and Asia. The association provides one of the
most comprehensive sources of practical shipping information and a wide variety of advisory and
consulting services to its members.

BIMCO’s purpose is to make international trade easier by:

• Influencing the simplification of international trade procedures

• Enforcing best trading practices

• Developing and promoting international standards for trade documentation

 • Working towards better border regulations and the removal of international trade barriers (Baltic
and International Maritime Council (BIMCO) 2016)

International Chamber of Shipping (ICS) is the principal international trade association for merchant
shipowners and operators, representing all sectors and trades and over 80% of the world merchant fleet.
(https://www.ics-shipping.org/ 2020). It is concerned with all technical, legal, employment affairs, and
policy issues that may affect international shipping.

The Manpower Report is a comprehensive update on the global manpower situation in the shipping
industry prepared by BIMCO and ICS every five (5) years. The report aims to provide an estimate of:

• The balance between the global supply of qualified and competent seafarers available for service
on ships trading internationally, and the industry’s demand for seafarers to operate the world
merchant fleet;

• Details about the composition of the supply of seafarers that operates the world merchant fleet,
including their nationalities, rank/role, age profiles and gender; and

• The anticipated future growth of the world merchant fleet over the next ten years and its possible
impacts on the global manpower situation

A. Methodology

The 2015 report follows the methodology utilized for previous BIMCO and ICS reports, however,
some changes have been effected to take into account feedback from the 2010 report and to ensure that it
remains a comprehensive source of information on maritime manpower. Views and opinions from a wider
range of stakeholders have been solicited and the number of ship types covered has been expanded to offer
specific information for different sectors

B. Estimated Supply of Seafarers

The global supply of seafarers in 2015 is estimated at 1,647,500 seafarers, of which 774,000 are
officers and 873,500 are ratings.

The global supply of seafarers has increased over the past five years, with both numbers of qualified
officers and ratings available to the international trading world merchant fleet continuing to increase. The
number of officers was reported to have increased by 34% between 2005 and 2010 and is now estimated to
have increased by 24% in the past five years. The following figure provides a summary of how the estimated
global supply of seafarers has increased since 2005.

Summary of the estimated global supply of seafarers 2005-2015

*Note: The estimates for 2015 are not directly comparable to the previous report due to changes in
approaches to data collection and definitions used in the scope of the report. Source: Country Questionnaire,
2015, and Manpower Reports from 2005 and 2010.

Based on the estimates of national contributions to the current global supply of seafarers, the five
countries with the largest numbers of seafarers in 2015 are shown below.

Estimated five largest seafarer supply countries

The top five countries indicated by companies were China, the Philippines, and the Russian
Federation, followed by Ukraine and then India. This closely resembles the countries estimated to supply
the largest number of seafarers, except for Indonesia.

Estimated demand for seafarers

The world merchant fleet for the purposes of the 2015 report was defined as 68,723 ships. The
largest category was general cargo ships with 31% of the total ships by number, followed by bulk carriers
with 16% and offshore supply vessels with 10%. The 2015 report has included information on the tanker
industry and various types of offshore vessels to obtain an indication of the demand for seafarers by these
sectors.

The global demand for seafarers in 2015 is estimated at 1,545,000 seafarers, with the industry
requiring approximately 790,500 officers and 754,500 ratings.
 The estimated demand for officers has increased by around 24.1% since 2010, while the demand
for ratings has increased by around 1.0%. The estimated demand for officers and ratings in 2015 compared
to the estimates of demand reported in previous reports is shown below.

Estimated global demand for seafarers 2005-2015

MANPOWER REPORT 2015

Whereas the estimated demand for officers and ratings increased between 2005 and 2010 by 33.8%
and 27.5% respectively, the trend of the demand for officers has continued whilst only a small increase in
demand for ratings has appeared since 2010.

Estimated supply and demand situation in 2015 The estimates prepared for the 2015 report indicate
that the current global supply of seafarers is around 1,647,500 seafarers, of which approximately 774,000
are officers and 873,500 are ratings, and that the current global demand for seafarers is around 1,545,000
seafarers, with the industry requiring approximately 790,500 officers and 754,500 ratings.

The current supply-demand situation is a shortage of 16,500 officers and a surplus of 119,000
ratings, with an overall surplus of 102,500 seafarers.

Current estimated global supply and demand of seafarers

Recruitment and Training of Seafarers

Recruitment and training levels are estimated to have increased over the past five years and wastage
rates appear to have reduced below those identified in previous reports. The 2015 report provides
information on turnover and wastage rates by rank and role, as well as for select seafarer supply countries.
Whilst the estimated wastage and turnover rates are considered to be generally positive, the current
contribution of recruitment and training is not sufficient to reduce the current shortage of officers or keep
pace with the forecast demand for officers in the future.

Estimated future supply and demand for seafarers A basic forecast for the future supply-demand
balance is calculated based on the information and data obtained for the 2015 report. The report also
presents nine other possible future scenarios (some demand-side and some supply-side) that may affect the
future maritime manpower situation, specifically the global supply and demand for officers. The basic
forecast is that the global supply of officers will increase steadily, but be outpaced by increasing demand
for officers.

Basic forecast for the future supply-demand balance for officers

 The 2015 report indicates that the forecast growth in the world merchant fleet over the next ten
years, and its anticipated demand for seafarers, will likely continue the trend of an overall shortage in the
supply of officers. This is despite improved recruitment and training levels and reductions in officer wastage
rates over the past five years. The current maritime manpower situation and future outlook indicate that the
industry and relevant stakeholders should not expect there to be an abundant supply of qualified and
competent seafarers in the future without concerted efforts and measures to address key manpower issues.
It is crucial to promote careers at sea, enhance maritime education and training worldwide, address the
retention of seafarers, and to continue monitoring the global supply and demand for seafarers regularly.

The following points are relevant to the Philippines:

 1. China has overtaken the Philippines as the overall top supplier of seafarers. China is now ranked
as the number one supplier of officers while the Philippines is the top source for ratings.

2. The world currently has a deficit of 16,500 for officers which might increase to 92,000 by 2020
and 147,500 by 2025. As of 2015, there is an oversupply of 119,000 for ratings.

3. The supply-demand forecast indicates the steady supply of officers will be unable to outpace the
increase in the global demand for officers.

4. There is a more significant shortage of Engineer Officer – Management level and officers for
specialized ships such as LPG, LNG carriers, and chemical tankers.

III. The Benefits in a Shipping Career

After acquiring a baccalaureate’s degree, a graduate must pass a licensure examination to become
a merchant marine officer or engineer. Once all the relevant certifications and documentation have been
completed, you can already join a ship as a third officer or engineer. A career in maritime offers many
benefits such as high wages, tax exemption, Expense-free (travel, accommodation, and food), Meet people
of different cultures, and learn different languages and among others.

A. High Wages

People would, of course, want to know if the job they seek would compensate enough for their
needs and the needs of those they need to provide for. In the Philippines, most entry-level jobs would offer
the minimum wage as mandated by the Philippine government. Considering that seafaring is international
in nature, it offers a salary range following the minimum recommendations of the International Labor
Organization. Wage calculation is based on a formula that takes into consideration changes in the cost of
living and exchange rates against the US dollars ( USD ).

Philippines trade union’s Collective Bargaining Agreement (CBA) on Article 12 shows in detail
how these are calculated. The table below is an excerpt from the CBA on the minimum wage scale effective
in 2017. International seagoing seafarers are employer, at the end of each calendar month. The table on the
next page shows the average market wages of Filipino seafarers employed onboard dry cargo vessels as
2015. (JSU Sailor Welfare 2017)

TABLE 1. CBA monthly minimum wage scale

Table 2. Filipino officer’s average market wage in USD ( for dry cargo vessels )Engineer
Rank Average Market Wage in USD
Minimum Maximum
Master/Chief Engineer 7801 8808
Chief Officer/1st Engineer 6486 6990
2nd Officer/2nd Engineer 3560 3984
3rd Officer/3rd Engineer 3051 3426

B. Tax Exemption

Despite not being physically present in the Philippines, Filipinos working abroad do not lose their
basic rights as citizens. Overseas Filipino Workers (OFW) still have the right to vote, the right to be
protected by the State, and the right to freely come and go to the Philippines. These are paying taxes to the
Philippine government.

However, the law states that OFW’S are exempted from income tax. As specified in the BIR’s
Revenue Memorandum no. 1-2011, the wage or income of an OFW arising out of his or her overseas
employment is exempted from income tax. Since seafarers are officially recognized as an OFW as registered
with POAE and possessing a valid overseas employment certificate (OEC), they are also exempted from
paying income tax.

Republic Act 8042 also mandates that all migrant workers shall continue to be exempted from
travel tax and airport fees upon showing an OEC. Although, all travel expenses are covered by the employer.
The remittances of all OFWs are also exempted from documentary tax provided that an OEC is presented.
This would include those sent through the banking system, credited to an account in the Philippines, and
withdrawn through an automatic teller machine (ATM). (Arellano law foundation 2011)

C. Expense Free

“See the world for free.” This is a famous line used to advertise the seafaring career. Another
privilege being enjoyed by seafarers is being able to travel to different countries with all expenses paid by
the employer. this means free airfare, food, accommodation, and for some generous companies, sometimes
including allowance. A seafarer joins a ship on a port where the vessel is at that particular time. The
employer must make sure that the seafarer is well taken care of from the time he or she has left the
Philippines until he or she has boarded the vessel and vice versa. This means the same mandate applies
when the seafarer is disembarking or is going home shipboard employment.

CBA imposes that an employer shall make that sure that the cost of the following be covered until the
seafarer reach the final agreed destination:

• Payment of basic wage

• The cost of accommodation and food
• Reasonable personal travel and subsistence costs
• Transport of the seafarer’s personal effects up to the agreed with the company.

D. Meeting People

Traveling the world and working overseas expose seafarers to many different nationalities and
their cultures. Working with people with different cultures, the crew members must be aware and sensitive
of these differences to increase a harmonious working relationship shows the diversity of nationalities
serving in the shipping industry with Philippines, India, and China being the top three. European countries
also has recently been supplying large numbers of seafarer specially coming from the eastern side. Ukraine,
Latvia, Greece, and others are among the major labor supplying countries in the industry.

Putting together people of different races and culture can create a difficult situation if not handles
well. This would include things as simple as food, clothing, gestures, and even religion. You must always
consider that what might be good or common for one person may be bad or unusual to another. This makes
learning different cultures interesting and exciting.

E. Learning languages

Jose Rizal was reportedly able to speak 20 different languages. Unfortunately, you will not get to
learn 20 different languages for being a seafarer unless you would really want to and learn for yourself. The
multinational culture of shipping gives an opportunity to be exposed to many different kinds of people, with
different cultural backgrounds, characters, and languages. This diverse cultural environment often time
create communication barrier that become a challenge in the working conditions on board. To be able to
bridge the communication gap between different nationalities operating the ship, the standard Maritime
communication Phrases (SMCP) was developed, rather than learning the language of other crew members.
Most Filipinos learn foreign languages easily even with standard communication phrases.

Exposure and practice make it possible to learn many things. It is like sending a Tagalog to
somewhere in the Visayas. Eventually, that person will learn to understand and even speak the local
language after being exposed to it for some time. But then again, this all depends on a person’s willingness
and interest to learn.

References:
Odal, T. O., & Capiral, D. T. (2017). Introduction to maritime career. Quezon City: The Phoenix publishing
House Inc.
Arellano law foundation. 2011. “Revenue Regulation No. 1 - The Lawphil Project.”
https://lawphil.net/administ/bir/rr/rr_1_2011.html (July 8, 2020).

Baltic and International Maritime Council (BIMCO). 2016. “Baltic and International Maritime Council
(BIMCO).” UKEssays.com. https://www.ukessays.com/essays/marketing/baltic-and-
international-maritime-council-bimco.php (January 25, 2020).

https://www.ics-shipping.org/. 2020. “ICS | International Chamber of Shipping.” https://www.ics-

shipping.org/ (January 21, 2020).

Jennifer Brozak. 2019. “What Is a Baccalaureate Degree?” The Classroom | Empowering Students in
Their College Journey. https://www.theclassroom.com/baccalaureate-degree-4603623.html
(May 16, 2020).

JSU Sailor Welfare. 2017. “J SU 2015-2017 | Sailor | Welfare| Free 30-Day Trial.” Scribd.
https://www.scribd.com/document/345368645/JSU-2015-2017 (May 17, 2020).

merriam webster. 2020. “Definition of SALVAGE.” https://www.merriam-

webster.com/dictionary/salvage (May 6, 2020).

Kenton, Will. 2019. “Charter.” Investopedia. https://www.investopedia.com/terms/c/charter.asp (May

6, 2020).

lexico.com, UK dictionary. 2020. “Seafarer | Meaning of Seafarer by Lexico.” A person who regularly
travels by sea; a sailor. https://www.lexico.com/definition/seafarer (May 6, 2020).