CHALLENGES IN MARITIME TRANSPORTATION SEAFARERS & MANAGEMENT PERSPECTIVE

1. CHALLENGES IN MARITIME TRANSPORTATIONSEAFARERS & MANAGEMENT PERSPECTIVE BY K. SHANKAR, EXECUTIVE DIRECTOR, WEST ASIA MARITIME LIMITED, CHENNAI FOR I.Mar.E., VISHAKAPATNAM BRANCH ON 05TH MAY, 2007

2. CHALLENGES FACED BY • INDUSTRY / REGULATORY BODIES. • SEAFARERS. • MANNING AGENTS • MANAGEMENT / SHIP MANAGERS. CAN IMarE DO ANYTHING ABOUT IT?

3. WHAT IS THE PRESENT TREND ? • NEW TECHNOLOGIES INTRODUCED. • MANAGEMENT EFFICIENCY HAS IMPROVED. • CUSTOMER SERVICE NOW A PERVASIVE FOCUS. • COST REDUCTION AS MANAGEMENT STRATEGY. • PERENNIAL MISMATCH BETWEEN SEARFARER SUPPLY & DEMAND. • CONCERN OVER QUALITY OF SEAFARER. • FRAGMENTED INDUSTRY /WEAK GOVERNANCE STRUCTURE. • CORECTIVE ACTION BY DGS GETS CHALLENGED. • MARKET BOOM ENSURES BELOW PAR TOO GET JOBS.

4. CREWING CONUNDRUM • SHORTAGE OF QUALITY /WELL TRAINED CREW / ESCALATING WAGES/ POACHING – PERRENIAL. • CUT THROAT MARKET – HARDER TO RETAIN STAFF. • PEOPLE ARE FREE AGENTS-MONEY THROWN FOR MANNING NEEDS. • MANAGAERS IN LURCH-MAKE DO WITH LOW QUALITY STAFF. • TOUGHER REGULATIONS –PREMATURE PROMOTION -INCREASE IN ACCIDENTS- COMPANY LOYALTY?? • HOW TO SOLVE THE CRISIS?? • DO EVERYTHING IN POWER – TO SHOW THAT YOU VALUE THE SEAFARER. • STRINGENT REGULATORY CONTROLS- HOW??

5. SEAFARERS EMPLOYMENT CURRENT PRACTICES • PROMOTES INSECURITY,POOR MOTIVATION AMONG SEAFARERS. • HIGH TURN OVER & LACK OF FOCUS ON JOB. • SUPPLY FOCUS IS ON DEMAND – NOT ON QUALITY. • LACK OF EXISTANCE OF RESPONSIBILITY / ACCOUNTABILITY. • NO OBJECTIVE TOWARDS CONTRIBUTION. • NEGETAIVE PERCEPTION OF PROFESSION. • MOTIVATED WORKFORCE NON-EXISTANT- DO THEY MEET CUSTOMERS’ EXPECTATIONS? • DEAL ON CUSTOMER-VENDOR MODE – WHERE IS THE QUALITY? • MARKET BOOM – BELOW PAR TOO GETS A JOB.

6. WHAT ARE THE CHALLENGES ? • RELIANCE ON MANNING AGENT FOR SUPPLY OF CREW. • LACUNA IN THE DISCHARGE OF HIS RESPONSIBILITY. • LOOSE REGULATORY FRAMEWORK. • POOR INDUSTRY GOVERNANCE. • FRAUDULENT CERTIFICATES & ABUSIVE PRACTICES. • SUB-STANDARD CREW PERFORMANCE. • WEIGHTAGE TOWARDS PAPER QUALIFICATIONS. • AIMLESS CORRECTIVE ACTIONS BY DGS CHALLENGED BY METs. • DG’S DIKTATS THROUGH AMENDEMNTS – ARE WE GETTING ANYWHERE? • CAN WE BE TOLERANT ANY MORE?

7. SHIPMANAGER/MANNING AGENT RELATIONSHIP-DRASTIC CHANGE • FROM TRANSACTIONAL TO GOVERNANCE STRUCTURE. • CONTRIBUTE TOWARDS POSITIVE EFFORTS FOR CREW RETENTION/CAREER SATISFACTION. • ALIGN SEAFARER ASPIRATION WITH EMPLOYER. • INCLUSION OF SEAFARER IN THE PLANNING PROCESS OF EMPLOYER. • CLARITY IN CONTRACT/PRE-CONTRACTUAL/RE-EMPLYMENT/PROMOTION BENEFITS TO CREW. • SUPPORT TO CREW FAMILY IN HIS ABSENCE. • STRATEGIC & INTELLIGENCE INFORMATION ON FACTORS INFLUENCING SEAFARERS MARKET. • GOOD WORKING ENVIRONMENT/REMUNERATION & CAREER GROWTH FOR PERFORMANCE.

8. IS CURRENT SYSTEM FLAWED ?? • ADMINISTRATION – MINIMUM REGULATORY STANDARDS – MERE FACILITATOR?? • SEAFARER QUALITY DEPENDENT ON MANNING AGENT- HIS SUCCESS A MEASURE OF MOTIVATION & LOYALTY. • LACK OF SUCCESSFUL COLLABORATION – MANNING AGENT & SHIP OPERATOR. • INDUSTRY SILENT SPECTATOR TO FLAWED SYSTEM. • “SEAFARER ORIENTATION & DEVELOPMENT” NEED TO BE THE FUTURE NATIONAL SHIPPING POLICY. • ONLY PROFESSIONAL LONGEVITY CAN STRIKE BALANCE BETWEEN SUPPLY & DEMAND. • INVESTMENT IN TRAINING – NEED FOR CREW DEVELOPMENT. • SHORT SIGHTED APPROACH IN TACKLING HR ISSUES. • LACK OF FOCUS IN HUMAN CAPITAL COMPROMISED FOR “SHORT TERM PROFITS”. • WORK CULTURE /PSYCHOLOGICAL STRESS LEAD TO LACK OF MOTIVATION TO PURSUE SEA CAREER.

9. ROLE OF MANNING AGENT • MARKET TREND –FINDING JOB NOT ACONSTRAINT. • SHIPMANAGER HAS TO SELECT A PROPER AGENT. • SUCCESS OF ABOVE IS MOTIVATION MEASURE. • MORE FOCUS REQUIRED ON RETENTION OF STAFF. • TIGHTER CONTROL OVER AGENT & GOVERNANCE WITH COLLABORATIVE PLANNING. • INVESTMENT IN CREW TRAINING IS HIS JOB. • POACHING BY FLY BY NIGHT OPERATORS TO BE PROHIBITED BY LAW. • FOCUS ON “HUMAN CAPITAL” & ITS VALUE LOST. • LONG TERM GAIN SACRIFICED FOR PROFITS. • A TRIPARTITE AGREEMENT WITH OWNER / MANAGER. • DO EVERYTHING – TO LET SEAFARER KNOW – YOU VALUE THEM.

10. BENCHMARKING OF SHIPMANAGERS • TODAYMARKET DEMAND QUALITY PERFORMANCE. • SELF REGULATION BY MANAGERS SHOW RESULTS. • HEALTHY TREND FOR PERFORMANCE CULTURE. • INTRO OF “KEY PERFORMANCE INDICATORS”. • INTER MANAGERS’ INITIATIVE FOR COMMON SET OF KEY PERFORMANCE INDICATORS. • CONTRIBUTION OF NORWEGIAN RESEARCH COUNCIL. • KNOWLEDGE – HOW TO MEASURE SHIP/MANAGER PERFORMANCE & AWARD A RATING. • BENCHMARKING OF SHIPMANAGER WILL BENCHMARK CREW COMPETENCE AS WELL. • NO ROOM FOR “CHEATERS”/EVASION OF RULES.

11. QUALITY OF SHIP PERFORMANCE • IT REFLECTS ON QUALITY OF SEAFARER. • SEAFARER MOTIVATION IS THE CHALLEMGE. • HENCE FOR SHIPMANAGER- GROOMIMG,TRAINING AND RETAINING THE SEAFARER IS VITAL. • CONFIDENT & COMPETENT EMPLOYEES ENSURE OPERAIONAL EXCELLENCE. • HENCE COMPETENCE BUILDING THROUGH ENHANCED TRAINING MODULES. • COMPETENCE MANAGEMENT SYSTEN DEFINES MINIMUM STANDARDS FOR A COMPANY. • ENHANCED TRNG NOT SOLN FOR COMPETENCE. • BUSINESS STRATEGY NEED TO CONNECT WITH COMPETNECE & TRAINING MODULES. • WHAT GETS MEASURED CAN BE MANAGED.

12. HOW TO ACHIEVE COMPETENCE STANDARDS? • HAVE YOU HEARD OFTMSADEVELOPED BY OCIMF? • EFFECTIVE MGMNT NEEDS GOOD MEASUREMENT. • COMPANY’S WORTH CAN BE MEASURED BY THIS. • PROFESSIONAL BODY CERTIFY THESE STANDARDS. • STAFF ON BOARD AND ASHORE HAVE BOTH BENEFITED THROUGH AUDITING PROCESS. • CERTIFICATION CALLS FOR MOTIVATION FROM SHIPOWNERS. • SHIPBOARD AUDIT MEASURES ACTUAL COMPETENCE AND NOT JUST DOCUMENTATION. • TMSA BUILDS ON ISM – NEED TO DEVELOP TOOLS TO DEMONSTRATE COMPETENCY. • TMSA CERTIFICATION ENSURES RECOGNITION.

13. MEASURE OF COMPETENCE MANAGEMENT Business Goals • Safety: We shall have zero accidents • Customer: We shall have zero complaints from vetting inspectors Financial People Etc • What plans for competence building/crewing will help us achieve these goals? • E.g.: We will focus on coaching top officers, and crew endurance management and operational risk management Business Goals Action Plan Action Plan Action Plan How to get there? Focus areas? • 30% less lost time incidents then industry average • Percentage of crew undergone training in operational risk management KPI - 1 KPI - 2 KPI - 3 KPI - 1 KPI - 2 KPI - 3 KPI - 1 KPI - 2 KPI - 3 KPIs • What company specific competence requirements are critical to achieve our business goals? (to create success and avoid failure) Risk Assessment Competence requirements Critical Competences got Risk

14. ARE YOU A LEADER IN YOUR FIELD ?? • CAN LEADERSHIP BE LEARNED ?- CAN IT HAVE AN EFFECT ON SUCCESS? LET US LOOK AT SIX ATTRIBUTES TO SUCCESSFUL LEADERSHIP: • LATERAL THINKING: TRY DIFF. PERCEPTIONS /CONCEPTS / MUTIPLE POSSIBILITIES TO APPROACH A PROBLEM TO HANDLE IT SUCCESFULLY. • EMPOWERMENT:DEVELOP SUBORDINATES TO BE LEADERS. SUCCESFUL LEADERS ARE ABLE TO MOTIVATE,ENERGISE AND EMPOWER OTHERS. • ACTIVE OPTIMISM: OPTIMISTIC PERSON THINKS POSITIVE. POSITIVE THINKING TRANSLATES INTO EFFECTIVE ACTION. • DETERMINATION TO IMPROVE: SELF EVALUATION HAS TO BE A PROCESS TO IMPROVE - IMPROVEMENT REAPS RESULTS. • ENCOURAGEMENT OF DELEGATION: MOTIVATE & ACCOMPLISH TASKS THROUGH OTHERS. THIS MOTIVATES SUBORDINATES TO ACHIEVE THEIR POTENTIAL. • REAL POTENTIAL:BE INSPIRED BY REAL POTENTIAL & STRATEGIES FOR COMPANY’S FUTURE & ACHIEVE THIS VISION.

15. BENCHMARK OF A GOOD SHIP MANAGER • IS BASED ON SHIP STAFF COMPETENCY, PROFESSIONALISM,HR SKILLS & VALUE ADDITON TO COMPANY. • THE NEED TO HAVE “A SENSE OF BELONGING”. • TREAT THE “SEAFARER” AS AN ASSET TO A SHIPPING COMPANY- THE SHIPPING BUSINESS REVOLVES AROUND HIM. • HE NEEDS TO BE LOOKED AFTER, TRAINED, GROOMED WITH GREAT CARE – RESULTS WILL FOLLOW. • HAVE A TRIPARTITE AGREEMENT WITH THE MANNING AGENT & MET – DEFINE MANNING STRATEGY & TRAINING PROGRAMS.

16. TO MEMBERS OF I.MAR.E VISHAKAPATNAM BRANCH &GUESTS A BIG THANK YOU