THE ROLE OF UKRAINE IN WORLD TRADE FLEET OFFICER SUPPLY Prof. Dr. Mykhaylo V. Miyusov

1. THE ROLE OF UKRAINE IN 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

2. Growth of seaborne shipments worldwide in 2010-2011 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.

3. Table 1. Development in international seaborne trade, selected years (Millions of tons loaded) * Iron ore, grain, coal, bauxite/alumina and phosphate.

4. World Marine Fleet +20% +2%

5. World Marine Fleet

6. World Marine Fleet 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.

7. Officers 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.

8. Table 2. The number of Ukrainian Seafarers on the World Labour Market according to years (according to Drewry Publishing information ) 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.

9. Table 3. Average Pay Rates in 2005 and 2010 on the International Labour Market at the Tanker Fleet for Masters from different countries in US Dollars(according to Drewry Publishing information) Table 4. Number of Seafarers on the International Labour Market in 2010 (according to Drewry Publishing information)

10. Table 5. Number of Seafarers on the International Labour Market in 2010 (according to BIMCO/ISF information ) In BIMCO/ISF report indices differ significantly from the data given in the work, especially as for ratings.

11. Index of countries' population involvement in the relevant global market

12. Table 6. Information about the Number of Valid Certificates of Competency of Officers of Seagoing Vessels in Ukraine Table 7. Information about the Number of Valid Certificates of Ratings on Seagoing Vessels issued in Ukraine

13. Researches and Investigations • 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.

14. Recommendations to concerned parties for supplying necessary number of seafarers “of high quality” 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.

15. The number of Ukrainian Seafarers on the World Labour Market according to years 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 cent within a period from 1995 till 2010.

16. Ukrainian higher maritime educational institutions (and their branches) 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).

17. 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

18. 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

19. Maritime education in Ukraine 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.

20. THE SCHEMEof Education in Ukraine THE SCHEMEof obtaining the Certificates of Competency without limitations 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. 20

21. ONMA activity ONMA Quality Management System Certified byRussianand Ukrainian Registers

22. ONMA and IAMU ONMA and NI

23. ONMA andIMarEST

24. ONMAand 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.

25. Manning Business in Ukraine 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.

26. The most active companieson the Ukrainian market • 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. 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.

27. Recognition 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.

28. Conclusion 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.

29. Thank you !