THE ROLE OF UKRAINE THE ROLE OF UKRAINE

IN WORLD TRADE FLEET OFFICER SUPPLYIN WORLD TRADE FLEET OFFICER SUPPLY

Prof. Dr. Mykhaylo V. Miyusov Rector of Odessa National Maritime Academy, Odessa, Ukraine

The International Forum on Seafarer’s Education, Training and Crewing 24-25th April 2013

Odessa, Ukraine

Growth of seaborne shipments worldwide in Growth of seaborne shipments worldwide in 2010-20112010-2011

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Around 80 per cent of global trade by volume and over 70 per cent by value is carried by sea and is handled by ports worldwide. In tandem with developments in the world economy and global merchandise trade, international seaborne shipments continued to grow in 2011, although at a slower rate than in 2010. Fuelled by strong growth in container and dry bulk trades, world seaborne trade grew by 4 per cent in 2011, taking the total volume of goods loaded worldwide to 8.7 billion tons. World container port capacity increased by an estimated 5.9 per cent to 572.8 million 20-feet equivalent units (TEUs) in 2011, its highest level ever. This increase was less than the 14.5 per cent increase of 2010 that sharply rebounded from the slump of 2009.

Table 1. Development in international seaborne trade, selected Table 1. Development in international seaborne trade, selected years years

(Millions of tons loaded)(Millions of tons loaded)

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Year Oil and gas Main bulks* Other dry cargo Total(all cargoes)

1970 1 440 448 717 2 605

1980 1 871 608 1 225 3 704

1990 1 755 988 1 265 4 008

2000 2 163 1 295 2 526 5 984

2005 2 422 1 709 2 978 7 109

2006 2 698 1 814 3 188 7 700

2007 2 747 1 953 3 334 8 034

2008 2 742 2 065 3 422 8 229

2009 2 642 2 085 3 131 7 858

2010 2 772 2 335 3 302 8 409

2011 2 796 2 477 3 475 8 748

* Iron ore, grain, coal, bauxite/alumina and phosphate.

World Marine FleetWorld Marine Fleet

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+2%

+20%

World Marine Fleet World Marine Fleet

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World Marine Fleet World Marine Fleet

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Practically half of the world tonnage (49.7 per cent) is owned by shipping companies from just four countries – Greece, Japan, Germany and China. The year 2011 saw a further increase in the use of open registries. Among the tonnage delivered in 2011, an estimated 83 per cent was registered abroad, and an estimated 71.5 per cent of the world tonnage is now registered under a foreign flag. Among the top 30 flags of registration, three serve exclusively for foreign-owned tonnage, notably Liberia, the Marshall Islands, and Antigua and Barbuda. The flags of Panama, Malta, the Bahamas and the Isle of Man are also used by a small number of national shipowners, although the majority of users of these flags are foreign.

One of the motivations for shipowners to use a foreign flag is an opportunity of foreign seafarers’ recruitment. It is especially attractive for the companies situated in the countries with high pay rates. That is why foreign flags are often called convenient.

OfficersOfficers

According to the latter the total amount of officers of seagoing vessels in 2010 was estimated as 532000, which is 32 per cent more than in 1990, and 14 per cent more than in 2005. And the shortage is 29800 (5.6 per cent). According to the forecast the number of officers must increase up to 607000 people in 2014 (14 per cent more compared with 2010). Shortage is anticipated to halve till 14300 (2.4 per cent). Over the period since 1990 the countries of Eastern Europe have shown the biggest relative growth in the number of officers. 7

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Table 2. The number of Ukrainian Seafarers on the World Labour Market according to years

(according to Drewry Publishing information )

Year Position

1995 2000 2005 2010

Officers 14000 14000 28908 35400

Ratings 24000 23000 36119 40000

According to the information since 1995 to 2010 the number of Ukrainian officers has become 2.5 times as big on the world labour market.

Table 3. Average Pay Rates in 2005 and 2010 on the International Table 3. Average Pay Rates in 2005 and 2010 on the International Labour Market at the Tanker Fleet for Masters from different Labour Market at the Tanker Fleet for Masters from different

countries in US Dollarscountries in US Dollars(according to Drewry Publishing information)(according to Drewry Publishing information)

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Country-Supplier of Crew 2005 2010 India 7500 13500China 4100 10500

Ukraine 5750 13750Philippines 5500 11250

Croatia 8200 15750

Table 4. Number of Seafarers on the International Labour Market in Table 4. Number of Seafarers on the International Labour Market in 2010 2010

(according to Drewry Publishing information)(according to Drewry Publishing information) Country-Supplier of Crew Officers Ratings Total

Philippines 66000 80000 146000China 51800 104200 156000Ukraine 35400 40000 75400India 31200 56000 87200Russia 22700 34500 57200… … … …Total in the world 532400 758400 1290800

Table 5. Number of Seafarers on the International Labour Table 5. Number of Seafarers on the International Labour Market in 2010 Market in 2010

(according to BIMCO/ISF information )(according to BIMCO/ISF information )

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Pos. Country-Supplier of Crew Officers Ratings Total

1 Philippines 57688 23492 81188

2 China 51511 90296 141807

3 India 46497 16176 62673

4 Turkey 36734 51009 87743

5 Ukraine 27172 11000 38172

6 Russia 25000 40000 65000

7 USA 21810 16644 38454

8 Japan 21297 7308 28605

9 Romania 18575 5768 24343

10 Poland 17923 4746 22669

… … … …

Total in the world 624062 692542 1316604

In BIMCO/ISF report indices differ significantly from the data given in the work, especially as for ratings.

Index of countries' population involvement in the relevant global

market

Table 6. Information about the Number of Valid Certificates of Competency of Officers of Seagoing

Vessels in Ukraine

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 Officer's Rank

 

Number of Certificates issued

Deep-Sea Master 8531Deep-Sea Navigator 8800

Navigator 18172Total Masters and Navigators 35503

Chief Engineer 8825Second Engineer 9933Third Engineer 17887Total Engineers 36645

First Electrical Engineer 2632Second Electrical Engineer 1651Third Electrical Engineer 3281Total Electrical Engineers 7564

Total Engineers and Electrical Engineers

44209

Total Officers 79712

Table 7. Information about the Number of Valid Certificates of Ratings on Seagoing Vessels issued in

Ukraine  Certificate of Ratings

Number of Certificates issued

Seaman 69075Motorman 37599Electrician 4304

Total Certificates of Ratings 110978

Researches and Researches and InvestigationsInvestigations

Although Eastern Europe has been assuming even greater importance due to increase of the number of officers over the recent years, countries of Organization for Economic Co-operation and Development (OECD) remain an important source for officers.

Recent research [3] confirms the former tendencies: shift in the balance of number of seafarers from OECD countries to the Far East, Southeastern Asia and Eastern Europe; increase in general demand for seafarers with a particular problem for some groups of specialists and types of vessels; “aging” of senior officers from OECD countries and personnel shortage for their substitution; necessity of increase in training and recruitment of seafarers as well as reduction of their outflow.

The investigations held by JITI and Nippon Foundation showed that due to tendencies of development of the world trade and shipbuilding, additional necessity in seafarers in comparison with 2010 would be 3.5 per cent in 2015 (23 thousand ratings and 15.8 thousand officers), and 7.2 per cent in 2020 (46.9 thousand ratings and 32.2 thousand officers). The research considers only ships of more than 2000 gross tonnage in order to analyze only international shipping and there has been adopted an assumption that the number of vessels will annually be increasing by 0.7 per cent till 2010. These two facts do not allow comparing these data with the results of the research.

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These recommendations can be generalized as the following:to form a national policy in the sphere of shipping due to the development of world economy and expected demand of seafarers on world labour market and inform the society about it;to contribute to maintenance of prestige, importance and seafarers job appeal and shipping industry among young people since their childhood and primary school;to improve Shipping image in the society, avoid unjustified dissemination of negative information, for instance about accidents, piracy and spread positive information about labour and rest conditions and social programs for seafarers;to facilitate cadets' obtaining on-board training by financing training vessels and expanding cadet programs;to contribute to development of material basis of maritime universities (academies, institutes) by supplying them with modern laboratory and training equipment;to contribute to recruitment of teaching staff of maritime universities (academies, institutes) and personnel with sufficient sea service;to ensure favorable labour and rest conditions for seafarers (pay rate, intensity of work, period of contract/voyage, food quality, possibility of sports activities, insurance against accidents policy, health insurance of a crewman and his family members, etc.);to facilitate wider recruitment of women on sea-going vessels.

Recommendations to concerned parties for supplying necessary number of seafarers “of

high quality”

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Diagram shows that the increase in the number of Ukrainian marine officers on world labour market began in 2000 and made up 153 per cent (2.5 times as big) over the last 10 years. It should be noted that the total number of officers in the world has increased only by 34 per

centwithin a period from 1995 till 2010.

The number of Ukrainian Seafarers The number of Ukrainian Seafarers on the World Labour Market on the World Labour Market

according to yearsaccording to years

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Odessa National Maritime Academy (ONMA) which comprises Azov Maritime Institute (in Mariupol), Izmail Faculty, Seafaring College of Technical Fleet and Maritime College after A.I. Marinesko in Odessa;

Kherson State Maritime Academy (KSMA), which comprises Maritime College; Kyiv State Academy of Water Transport named after Hetman Petro

Konashevych-Sagaidachnyi (KSAWT), which comprises branches in Izmail, Nikolaiev, Sevastopol;

Sevastopol National Technical University (SevNTU), Faculty of Marine Technologies and Navigation;

Odessa Maritime College of Fishing Industry (OMC FI); Nakhimov Naval Academy (NNA), Sevastopol, Navigation and Ship Power

Faculty; Kerch State Maritime Technological University (KSMTU); Admiral Makarov National University of Shipbuilding (NUS), Nikolaiev, The

Mechanical Engineering Institute (Marine Engineering Specialty only); Ukraine Maritime Institute (UMI), Sevastopol; Odessa National Maritime University (ONMU), Marine Engineering Faculty

(Marine Engineering Speciality only); Kherson Maritime College of Fishing Industry (KMC FI).

Ukrainian higher maritime educational institutions (and their

branches)

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Table 8. Number of Students and Graduates of Maritime Educational Institutions in Ukraine who obtained Diplomas of

Higher Education in 2012 enabling them to obtain the Certificate of Competency for Officers

Pos.Name of

Academic Institution

Graduation according to Educational Levels Total

Graduates  

Total Student

sJunior

Specialist

Bachelor of

Sciences

Specialist

Master of

Sciences

1 ONMA 674 1539 647 88 29481098

7 2 KSMA 418 491 250 21 1180 45413 KSMAWT 98 300 186 13 597 26074 SevNTU - 457 261 31 749 19315 OMC FI 375 - - - 375 23266 KSMTU - 276 149 - 425 11067 NNA - 229 174 - 403 11888 KMC FI 345 - - - 345 14739 UMI - 192 21 - 213 848

10 ONMU - 62 38 - 100 64011 NUS - - 118 - 118 123

Total in Ukraine 1910 3546 1844 153 745327770

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Table 9. Number of Graduates of Maritime Educational Institutions in Ukraine having obtained a Diploma of Higher Education

enabling them to obtain the Certificate of Competency for an Officer on Seagoing Vessels in 2003-2012

PosName of Academic Institution

General Number of issued Diplomas of Higher Education in Seagoing Specialties according to years

Total

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1 ONMA 1320 1305 1824 1779 2250 2261 2434 2448 2809 29482137

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2 KSMA 631 827 706 999 905 842 1070 878 1083 1180 9121

3 KSMAWT 208 424 51 639 690 988 1099 970 973 597 6639

4 SevNTU 356 382 402 492 556 599 700 697 742 749 5675

5 OMC FI 318 384 471 457 505 468 469 507 505 375 4459

6 KSMTU 209 184 194 216 233 217 192 307 410 425 2587

7 NNA - - 45 72 156 216 305 348 409 403 1954

8 KMC FI - 90 112 131 140 119 117 130 113 345 1297

9 UMI 49 42 59 73 123 83 130 177 182 100 1018

10 ONMU 11 12 11 10 7 11 28 74 127 118 409

11 NUS - - - - - - - 26 104 213 343

 Total in Ukraine

 3102

 3650

 3875

 4868

 5565

 5804

 6544

 6562

 7457

 7453

 5488

0

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The system of ship's crew training in Ukraine preserves and develops the best traditions of maritime higher education in the USSR:competitive selection of university entrants having complete secondary education;the term of training of a specialist with complete higher education is 5.5 years;facilitating sea-going service on board vessels for at least 8-12 months during studies (depending on the specialty);good basic and general technical training;a high level of the training facilities (laboratory, simulation basis, training fleet)a high potential of academic teaching staff (academic degrees and titles, diplomas and certificates, which enable them to hold officer positions on vessels);consolidation of cadets’ academic and research work, development of creative skills;arrangement of cadets’ education and campus life under conditions that are similar to ship’s (daily routine, discipline, uniform, self-service, duty service);meeting the requirements of international conventions; the system of life-long postgraduate education of marine officers for keeping a high level of competency, mastery of new technique and new methods of operation.

Maritime education in Ukraine

THE SCHEMEof obtaining the Certificates of

Competencywithout limitations

THE SCHEMEof Education in Ukraine

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ONMA – Odesa National Maritime Academy, KSMA – Kiev State Maritime Academy, ONMU – Odesa National Maritime University, SCAC – State Competency Assessment Commission, OOW – Officer in charge of a Watch, COC – Certificate of Competency, TRB – Training Record Book.

ONMA activityONMA activity

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ONMAONMAQuality Management System CertifiedQuality Management System Certifiedbyby RussianRussian and Ukrainian Registers and Ukrainian Registers

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ONMA and IAMUONMA and IAMUONMA and NIONMA and NI

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ONMA andONMA andIMarESTIMarEST

ONMAONMA and IMOand IMO

Teachers and scientists of the Academy actively participate in the following IMO meetings:

Sub-Committee on Standards of Training and Watchkeeping (STW);

Sub-Committee on Radiocommunications and Search and Rescue (COMSAR);

Maritime Safety Committee (MSC); Sub-Committee on Safety of Navigation (NAV); Legal Committee; Council.

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Manning Business in Manning Business in UkraineUkraine

Ukraine is a democratic state, which ratified the Universal Declaration of Human Rights and the European Social Charter. The Constitution of Ukraine gives citizens extensive rights to choose the place of their employment abroad freely, including foreign shipping companies. According to the data of the Ministry of Social Policy of Ukraine of 11.03.2012 in Ukraine 771 business entities are licensed to mediation in employment abroad, including 259 ones in Odessa region. A considerable part of them located in port cities (Odessa, Sevastopol, Izmail, Kherson, Nikolaev, Mariupol, Kerch) directly deal with seafarer's employment. It should be noted that on 2.06.2011 Ukraine had 1106 companies and entrepreneurs with the relevant licenses, thus the number of them decreased by 30 per cent within 18 months. After coming into force of the International Maritime Labour Convention 2006, which considerably toughens the requirements for maritime crew agencies, the number of them is expected to plummet in Ukraine. Most of leading shipping and management companies have already had their representative offices (recruiting agencies, crewing companies) in Ukraine, especially in Odessa. Many foreign companies with long-term programs for Ukrainian seafarers on board their vessels invest significant funds into personnel training with the help of their own “cadets programs”, sponsoring maritime training institutions, creating their own training centers. In the framework of cadets programs together with training institutions they select cadets in compliance with the company's requirements (knowledge of English, professional training, necessary certificates), organize planning and control over complying with on-board training programs. Companies cover all expenses connected with on-board training.

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The most active companieson the Ukrainian market

V.Ships MSC Bernard Schulte

Shipmanagement Ltd. Peter Döehle Schiffahrts – KG Marlow Navigation Blue Star Holding Claus-Peter Offen Oskar Wehr KG GmbH Alpha Shipmanagement GmbH &

Co. KG Danaos Shipping Co. Ltd Epsilon Hellas Anthony Veder Rederijzaken B.V. Royal Boskalis Westminster B.V.

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Global Crewmanagement MOL Ship Management Co BW Gas ASA OSM Crew Management AS Wilhelmsen Ship Management Stolt-Nielsen Transportation Group BV Maersk Ship Management (A.P. Møller

A/S) CMA CGM Group ASP Ship Management Group Anglo-Eastern Ship Management Columbia Ship Management Zodiac Maritime Agencies Ltd., etc.

Recognition of UkraineRecognition of Ukraine

Today Ukraine is in “the White List” of International Maritime Organization among countries, in which requirements of STCW Convention and Code are adhered to full extent. As of March 2012 Memoranda on Recognition of Ukrainian Seafarer’s Certificates were signed with 53 member-states of International Maritime Organization in compliance with Regulation I/10 of STCW Convention. Besides, the system of training and certification of seafarers in Ukraine has been approved by the European Commission on the ground of regular inspections carried out by the European Maritime Safety Agency (EMSA) for compliance with the requirements of the Directive of the European Parliament and of the European Union Council.

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ConclusionConclusion

Ukraine as a maritime state has potential for further increasing of

the amount of maritime specialists' training and good prospects for

successful competition on the world labour market under the conditions of increasing demand for qualified maritime professionals in global

maritime shipping.28

Thank you !Thank you !

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