Index

1. Chapter One: Innovation in Maritime Education and Training 1.0 Introduction

The amendments to the STCW Convention agreed in 1995 came into effect in 2002 with some changes in January 2003. The provisions concerning the need for governments to submit quality standard reports to the IMO, concerning their training and certification systems, were required to be met as recently as 2004. The changes introduced in 2003 were not extensive and the changes that was expected in 2010 to address several important issues that argues remains a number of deficiencies in STCW even if all of the proposed changes are implemented. The review, the changes in 2003, reflects the trends in the need for more specialization to address the higher-level maritime operations onboard ships through a wider coverage of knowledge and skills and competency. The development of advanced navigational technologies, specialized and professional transportation technologies and pollution prevention technologies and regulations were considered important for inclusion into the seafarers' competency standards.

1.1 Maritime Education and Leadership

Shipping is a private, highly competitive service industry. The activity of the industry is divided into several categories, namely, liner service, tramp shipping, industrial service, and tanker operation, all of which operate on certain wellestablished routes. The worldwide nature of shipping and the reduction of ships crew complements require a different management system with higher individual responsibilities and this requires additional education and training before duties

can be given onboard. In a critical crewing situation, where the owners use manning agencies to find ships crews, it happens that they practice the habit of shopping around between crewing agencies. This habit contributes to less crew motivation and less community-feeling. The owners have set off this challenge and are now struggling to achieve a reasonable crew retention rate. Multicultural differences and the crews often weak knowledge of English make it necessary to add supplementary education in English to something much more than bare basic and to build a seafarers cultural awareness insight. Worldwide MET institutions are the natural identity to forward such insight. The IMO is fully aware of the situation and measures have been taken in different areas to maintain a safe, secure and environmental friendly industry.

1.2 Agreement on STCW Changes

A recent review by Ziarati (2009)1 of the paper by Yongxing (2009)2 indicated that the STW Sub-Committee has agreed to: Retain the structure and goals of the 1995 revision; Address the inconsistencies, misleading interpretations, outdated provisions, MSC instructions, Address requirements for effective communication; Provide for flexibility in terms of compliance and for required levels of training and certification and watch-keeping arrangements due to innovation in technology.

1.3 Review of STCW Convention and its codes

The review of several minor changes in 2003 reflects the trends in the need for more specialization to address the higher-level maritime operations onboard through a wider coverage of knowledge and skills and competency required as
1

Ziarati et al, Ziarati, M. SURPASS Leonardo Project 2009-2011 No: 2009-1-TR1-LEO0508652, www.c4ff.co.uk. 2 Yongxing, J., and Ruan, W., Understanding of the Impacts of the International Maritime Conventions and Rules upon Maritime Education and Training and the Strategies there of, IMLA, 2009, Ghana, 2009.

results of the changes. The development of advanced navigational technologies, specialized and professional transportation technologies and pollution prevention technologies and regulations were considered important for inclusion into the seafarers' competency standards.

1.3.1 Security training and related issues

The International Maritime Organization's (IMO), International Ship and Port Facility Security Code (ISPS) and the U.S. Maritime Port Security Act of 2002 (MTSA) require training for port and vessel security personnel. IMO is determined to achieve a design with more systematic maritime security training scheme. This was agreed with a set of three-level security training and knowledge requirements for the Ship Security Officer, for shipboard personnel having specific security related duties and for all other shipboard personnel. It is predetermined that all shipboard personnel should be subject to the basic skill training and guidance for maritime security as required by the Regulations VI/1 and VII/1 of STCW code A. All shipboard personnel having specific security related duties shall receive professional training related to the Shipboard Security Plan and that when onboard all in employment personnel experience familiarization training to develop the required security skills. The author argue that recently emerging piracy issues should be dealt with in this context in order to provide more assets for the ships crew for their own defense.

1.3.2 Simplifying navigation calculations

The competency standards relating to celestial navigation calculations has been reviewed and strengthened. The regulation B IL/1 of the code will be amended. The application of computerized celestial navigation calculation will be included in the relevant provision of code B. Use of computers and the calculators for celestial navigation calculations may give in considerable reduction for dedicated class hours which may be used for extended simulator practice.

1.3.3 Adding training requirements for VTS

This is primarily included to secure the understanding of the masters, chief officers and officer of watch on the types and the limitation of VTS, and prepare them so that they apply specific procedures for the VTS maritime safety with regard to table A-II/1, A-II/2 and A-II/l of the Convention, and 3-1 of A- VIII/2 and B-I/12 and their expected updates. This can be achieved in short courses on VTS applications designed both for VTS operators and ship officers in a simulator environment. Also including pilot trainees in these courses may provide full training for all involved in entry/departure operations.

1.3.4 Making BRM and ERM training compulsory

The courses were developed and encouraged by the shipping industry. Considering the similarities between Bridge Resource Management (BRM) and Engine-room Resource Management (ERM) principles the two courses will be transferred from section B- V III /2 to A- VIII/2 and hence made compulsory. According to Yongxing (2009)3 the new convention is expected to come into effect in the year 2012 and be applied in the next 8-10 years. It is expected that the new revision will play an important role in improving maritime safety and pollution prevention through its effective implementation world-wide. For MET institutions, Ziarati (2009) states that the revised Convention will require a revision of strategies for teaching, learning and assessment as there will not only be new content but greater and wider use of high technology navigation and hence computer simulations. The simulators will play a major role in learning and competence development and assessment. The need to develop transparent quality assurance and control as well as management becomes more urgent for reputable METs particularly considering the new and more determined role by authorities such as EMSA in externally verifying the implementation of STCW in
3

Yongxing, J., and Ruan, W., Understanding of the Impacts of the International Maritime Conventions and Rules upon Maritime Education and Training and the Strategies there of, IMLA, 2009, Ghana, 2009.

member countries by visiting MET institutions. The revision of STCW in 2010 is as significant as the changes introduced in 1995 and the implementation of the new STCW will be very challenging for MET institutions and the national administrations. The new STCW is expected to create opportunities for progressive MET institutions to take a lead and offer leadership for development and transfer of innovation world-wide.

1.4 SOLAS, MARPOL and other Maritime Conventions

Today there are many new topics and issues in maritime safety that require the attention of the IMO and maritime community worldwide such as emergence of automation, importance of reducing pollution and improving safety and security which required a careful review of the LRIT, GB3S, GISIS, FSA and initiatives promoting the assessment of risk management, E-Navigation, and port of refuge regulations. The protection of the environment has now become a topical issue and recent IMO initiatives with regards to reducing waste and pollution such as Ships Recycling, Green-House Gas Emissions from Ships (GHG), Special and Particularly Sensitive Sea Areas, Control and Management of Ship's Ballast Water and Sediments, etc. will provide ample opportunities and catalysts for MET institutions to review their provisions while at the same time incorporating the changes in STCW requirements.

1.5 Maritime education and training (MET)

It is realized that the human-performance is the dominant factor that determinates how safe merchant shipping will be. The human factor has been found to give a very high percentage of accidents at sea, it means that generally about 80 percent of all accidents are caused by the human factor (Jense, 2006, p. 100)4. The 80 percent relates to direct mistakes caused by an
4

Jense, Gran (2006). Den skra oskerheten om sjfart, risk och skerhet [The uncertain Certainty about Shipping, Risk and Safety]. School of Technology and Design, Research report, 29. Vxj: Vxj University. [In Swedish].

operating human. In matter of fact; it could be 100 percent because humans are also creating the conditions for operators to accomplish their duties. In order to effectively minimize such accidents, as known today, the answer is to be found in education and good shipping management. Another factor, to assure better accident statistics, is to do something about the ship/shore element of operations; the ship/port interface (SPI).

1.6 Leadership education for MET students

Though not always clearly spelled out, world wide MET education is supposed to ensure that the students not only have intellectual rigor, but as well have obtained leadership abilities and feelings of commitment. This comprises to have an inner capacity to touch people through their work produce good leaders with a good character and heart (Bala, 2007, p. 10). Leadership is defined as: the process of influencing others to understand and agree about what needs to be done and how it can be done, and the process of facilitating individual and collective efforts to accomplish the shared objectives (Yukl, 2005, p. 8). It signifies that leadership is a subject that is linked to several subject-areas like psychology, pedagogy and sociology. Leadership is also much linked to management. Management is a subject matter that has a key influence in almost all WMU course-subjects.

1.7 Carss Transformational Leadership Critical Skills Model

Carss designed Transformational leadership Critical Skills Pyramid to propose several hypotheses about the skills of transformational leadership. In order for leaders to maximize their transformational leadership levels they must first develop their lower level skills. Many of the upper level skills rely on the foundational lower level skills; therefore, these skills are the most important to develop. In order to use versatility, consultation, and problem management skills leaders need to be able to effectively communicate with followers. The bottom four skill sets must first be mastered before a leader can work on their versatility skills. It is

hypothesized that once a leader masters a lower level skill, they will progress up to the next critical skill set. Therefore, upon testing of this measurement tool it is expected that individuals will receive higher scores on the lower level critical skill sets. In future research, these hypotheses will be further validated. As shown in figure 2.

Figure 2: Carss Transformational Leadership Critical Skills Model A professor in class is considered to be a leader. Leadership of the 21st century normally includes characters like: Intelligence, persuasion, ability to inspire, knowledge, experience and an apprehension of humans (Drakenberg, 1997) 5. Modern developing leaders (contrary to conventional leaders that are demanding, rewarding and controlling) have been identified by Larsson (2006) and are characterized to have thoughtful and caring aspirations, inspires and have a genuine motivation13.

1.7.1 Practices and commitments to improve leadership skills Recent research by Anderson, Gisborne, & Holliday (2006), suggests specific qualities which transformational leaders require to build strong relationships with
5

Postgraduate Studies For Classroom Teachers, COMPARATIVE STUDY, Margareth

Drakenberg, Juhani Hytnen

followers, which are: understanding, caring, respecting, genuineness, and specificity. The quality of understanding entails that leaders understand personal and organizational needs, problems, goals, and dreams. The Practices and commitments to improve leadership skills in the workplace were identified by Bradley W. Carss, 2010 6 as: 11. Challenge the process 1a. Search for Opportunities 2b. Experiment and take risks 22. Inspire a shared vision 1a. Envision the future 2b. Enlist others 33. Enable others to act 1a. Foster collaboration 2b. Strengthen others 44. Model the way to the desired objectives 1a. Set the example 2b. Plan small wins 55. Encourage the heart of everyone involved 1a. Recognize individual contribution 2b. Celebrate accomplishments

1.7.2 The Outcomes of Transformational Leadership Several studies have found that by displaying the positive behaviors of transformational leadership, work teams experience higher levels of performance (Avolio & Yammarino, 2002; Bass & Avolio, 1994; Bass, 1985; Dionne, Yammarino, Atwater & Spangler, 2004; House, 1988; Howell & Avolio, 1993; Kirkpatrick & Locke, 1996; Smith, 1982). In a study completed by Smith (1982), he analyzed the level of performance within 30 transformational leaders and 30
6

The Measurement of Transformational Leadership Skills in the Workplace,

Bradley W. Carss, 2010

non-transformational leaders in a wide variety of organizations. In Smiths findings, he validated that the transformational leaders teams had higher levels of performance and self-assurance compared to the non-transformational leaders teams. Smith concluded that transformational leaders achieved these higher levels of performance and self-assurance because of their self-efficacy beliefs. According to Avolio & Yammarino (2002), transformational leadership has a greater impact on follower performance than other styles of leadership. From this study, we can see that transformational leadership behaviors are the optimal choice for the leaders of todays global marketplace, as shown in the figure 1.

Figure 1: Impact of high levels of transformational leadership on followers

1.7.3 Self-Management Skills The skills of self-management are the critical building blocks to help leaders begin to realize their personal strengths and areas of opportunity. In order to improve as a leader, they must first understand what areas need improvement. Gaining a better sense of ones self has a positive correlation to transformational leadership (Anderson, Gisborne & Holliday, 2006; Kouzes & Posner, 1999; Kouzes & Posner, 2002).

1.7.4 Interpersonal Communication Skills Interpersonal communication skills are foundational skills. These skills are vitally important to any leader. The ineffective use or lack of use of these skills can result in undermined leadership credibility and decreased influence on followers. The effective use of interpersonal communication skills will improve the effectiveness of the vision, mission, values and goals that leaders are trying to inspire followers to embrace. These skills can also develop harmonious relationships within the team which will create higher levels of team cohesion which is proven to have a positive effect on performance (Anderson, Gisborne & Holliday, 2006; Avolio & Yammerino, 2002; Kouzes & Posner, 1999; Kouzes & Posner, 2002).

1.7.5 Problem Management (Coaching, Counseling and Mentoring) Skills Coaching, counseling and mentoring followers is a process that is instrumental in managing and planning actions to deal with specific problems. For almost all teams and organizations, problems always arise along the way. Transformational leaders use these skills to effectively overcome problems; thus, strategically guiding their organizations through difficult times and towards success. Effectively managing problems has a positive effect on the innovation process and the development of teams; therefore, increasing the performance of teams and organizations (Anderson, Gisborne & Holliday, 2006; Gumusluoglu & Ilsev, 2009).

1.7.6 Consultation Skills The skills of consultation allow an organization to continuously improve and adapt to changes in the business marketplace. These skills are used to assess the needs and problems of teams and organizations so they can develop and improve processes. According to research completed by Kouzes & Posner (1999), the effective use of these skills will result in large increases in performance within teams and organizations.

1.7.7 Versatility Skills The skills of versatility require a leader to shift between specific roles, leadership styles, and skills in order to deal with certain situations. According to Anderson, Gisborne & Holliday (2006), this skill set is the most difficult to develop but can have the greatest impact on the success of a transformational leader and his/her team and organizations performance.

2. Chapter Two: Availability and Training of Seafarers 2.0 Introduction

This chapter is concerned with the overall review of the attempts to set the scene for the outcomes which will be found in the following parts; the Technical Review, the People Review and the Training Review. The aim is to reference all those features which, to a greater or lesser extent, may impact on the Terms of Reference, under the broad heading "The Availability and Training of Seafarers Future Impact". Within this chapter the following areas are addressed: Background and methodology The Organization for Economic Co-operation and Development The historical perspective of the industry The influencing groups The constraints to the study

(OECD)

2.1 The Influencing Groups

Relative to the shipping industry at larger scale, the key groups of bodies / organizations are believed to be:

Ship Owners / Operators

As has been the case, traditionally, ship owners remain the largest group involved with the industry and, as regards OECD countries, Japan is the largest, followed by Greece, United States and Norway. Ship Managers Hence the ship management sector is currently estimated to control 25% of the world fleet, this being up from 20% in 1990. It is expected to reach 33% by 2010. (Lloyds List 27th September 2001). This group may be contracted by an owner or a bank to carry out traditional shipping functions, ranging through manning, management, commercial, etc. Ship managers, whilst global in their coverage of services, tend to be concentrated in the following areas: - North West Europe - eg Norway, UK (including Isle of Man) (OECD countries) - Mediterranean - prominent in Greece and Cyprus (some OECD countries) - Hong Kong and Singapore - Middle East - particularly Dubai - Other pockets such as Australia, United States and small numbers (embracing OECD countries) Manning Agents Manning agents are the group associated with the supply of marine personnel and are based in the country of recruitment from which the seafarer is drawn. Increasingly, they are based in the Far East and India and, more recently, Eastern Europe. Ship Builders / Equipment Manufacturers By far the largest percentage (around 70%) of ship builders and equipment manufacturers are located within OECD countries, together with associated research bodies.

International Regulatory Bodies

These will include the International Maritime Organization (IMO), International Labor Organization (ILO), Port State Control, etc. Other International Bodies These will include classification societies, the Baltic and International Maritime Council (BIMCO), the International Shipping Federation (ISF), the International Chamber of Shipping (ICS), the Organization for Economic Co-operation and Development (OECD), etc. Shore Training Institutions These will include Maritime Colleges in many OECD countries and also wider bodies, such as the World Maritime University. Shore Marine Bodies Such as relevant ship owners' organizations, lawyers, harbor authorities, P&I Clubs, consulting firms and others. Seafarers Finally, the seafarers themselves, in some cases at a distance, are the seafaring unions, with the international body being the International Transport Workers' Federation (ITF).

2.2 The Technical Review

The Technical Review covers the present state of world and OECD country shipping and its future development. Throughout this section, the Report concentrates on the actual number of ships, rather than the normal measurement of fleet sizes, Gross Tonnage (GT) or deadweight tonnage (dwt). Comparisons will be provided to ensure continuity with referenced figures or diagrams.

2.2.1 Ships
Ships carry 95% of all world trade. That was estimated to be as large as a 300,000dwt ULCC carrying crude oil from the Gulf to Japan or as small as the inter-island ferry carrying some passengers and live sheep. Each and every ship

must be operated, navigated and maintained effectively, efficiently and in a risk managed environment. Without ships, and people to crew, manage and provide the myriad of ancillary services, national and international trade would cease to exist. The coastal countries provide the traditional core of international Ship-owners and seafaring nations and, in todays world, their participation and influence in the shipping industry and in the ownership and management of ships could be seen as unbalanced. The heritage of successful ship management means that they control and employ a large percentage of ships, crews and personnel who operate in the wider shipping industry. To identify what the needs and the figures will be in the next ten to fifteen years it is necessary to have a detailed picture of the state of contemporary shipping and shipping industry.

2.2.2 World Fleet

It is almost impossible to actually quantify the size of World Merchant Fleet, for any given time, as the number of ships, and their ownership, fluctuate on a daily basis. However, presently there are approximately 87,500 ships over 100GT (Lloyds Register) and these ships have a total of 560 million GT. Included in the World Fleet numbers are 37,000 miscellaneous ships, such as inshore tugs, dredgers, and larger fishing vessels, that make up 5.2% of the world total GT i.e. individually they are of a small size. Though these small ships need Officers and Ratings, their requirements have been excluded from this Report. The ships that are identified in the Report have Lloyds Register defined Categories, and include all cargo and passenger carrying ships, and specialist offshore ships. The World Fleet total for these ships is 50,256 with a capacity of 538 million GT (or 792 million dwt).

Source: OECD & Lloyds Register 2000

2.2.3 Ship Design and Technology "The Future Ship is fast, efficient and economic. It is fitted with latest available equipment. It has to be suitable for the intended service, but simultaneously flexible enough for other complimentary service. It must be very safe and environmental friendly. It must be able to operate with minimum crew. It should be a pleasant workplace and home for the crew. If it is a passenger vessel, all possible entertainment facilities should be available. In addition, the future ship should also be nice looking in order not to upset anyone aesthetically. (NAVIGATOR 6/2001). There are approximately 14,000 companies around the world that are involved with the construction of ships, their engines and marine equipment and 75% of these companies are situated in OECD countries. These companies have had a huge influence on the past design and technology of ships and shipping, and will continue to have an effect on their future. In addition, the commercial shipping organizations, both operators and users, have been at the forefront of innovation and design. This has resulted in change and, over the past decades, ships and the management of them have become more technically, commercially and socially sophisticated and, in certain trades, incredibly complicated. The ships carry more various and specialist cargoes, ships such as car carriers, wood product carriers, tankers are designed to load and unload at single point moorings and a multitude of specially fitted out ships. They are in operation now and, along with the rest of

the merchant fleet, they operate under a far greater amount of legislation and controlled management and often with smaller crews than in the past. Present day ships are being built to carry complex and technically demanding equipment, and indeed ships that have traded for many years can and are being retrofitted with similar types of systems and equipment, from computer control engines and cargo systems to GMDSS, e-charts and Automatic Identification System (AIS). In addition, ships appear to have more equipment, both manual and automatic, systems and processes and they need Officers and Ratings that have a high degree of different and diverse competences than those expected in the past.

2.3 Present Design of Ships

To appreciate the possible future changes in design and technology of ships it is important to understand the current and recent past situation in shipbuilding. Eeven though, as already indicated, there is a variety of ship types from the very large to the very small, they all have fundamental characteristics of navigation, propulsion, safety and cargo handling systems and ships being built in 2002 are fundamentally the same as those that have been being built over the past decade. Included here are some broad examples of ships built in recent years. The variations of ship design would include (not limited to) the followings: Design Propulsion and auxiliaries Cargo System Automation, Control and Electronics

Such changes would require different MET to graduate officers capable to operate such ship.

2.4 Future Development

The future development of ships, their management and operations is open to a wide range of assumption from the nothing will change to the distant dreams of

one man crews, shore based automation and High Speed Craft that can sail at 50 knots through all kinds of weather, on all kinds of seas and carry economic amounts of cargo. The truth will lie closer to the former than the distant dreams and the reality of costs and risk management ordains that the changes that occur in shipping will continue to be gradual and incessant. However, according to the forecasts, demand for new ships will keep rising in the next few years. Current worldwide shipbuilding capacities will cover this demand. Shipyards will increase their capacities by 15.5% to 26.7m GT and up according to the demands of the market. New ships will bring in innovative designs and ideas for operators to contend with. In addition, there are fundamental changes that will take place and that will affect the future of the crews, managers and the ancillary organizations related to ships.

2.5 Trade Patterns

The need for different ship types is varying strongly over time. Old workhorses of the general cargo ship design are gradually leaving the scene to new types entering the same trades and special designs are developed to serve new trades for special commodity types, wood products, car/vehicle carriers, heavy lift etc. The containerization of general cargo trades is one of the most prominent features. Providing round the world voyages to major centres and having feeder services to take the boxes to more convenient ports. Reefer vessels have suffered strongly from the competition from refrigerated containers. However, several reefer trades in bananas, other fruits, fish or meet do not fit in easily with the large around-the-world container services and are continuing to trade with specialist ships.

2.6. Legal
The importance of legislation cannot be ignored and quick overviews of the present scene are: Management Systems the implementation of the International Safety Management (ISM) Code in August 2002 identifies the

responsibility of the operator in the management of all ships over 500GT. The long-term effects on shipping through the possible pressure from associated organizations i.e. banks, insurers, P&I and classification societies could lead to a reduction in the number of ship operators though not a reduction in the number of ships. Hours of working - In 1997 the minimum rest requirements entered into force as part of STCW 95, and in the future these will be augmented by the additional ILO requirements contained in the ILO Convention on Seafarers' Hours of Work and the Manning of Ships (ILO No. 180), which is expected to come into force within a short period of time. The new legislation on minimum rest requirements will probably present an operational challenge to some shipping companies seeking to ensure that they are in compliance, especially those ships that operate on the Minimum Safe Manning numbers, with some confusion on what the actual regime, hours of rest and work will apply. MARPOL Annex I Oil: Since 6 July 1993 Regulation 13F requires all new tankers of 5,000 dwt and above to be fitted with double hulls separated by a space of up to 2 metres (on tankers below 5,000 dwt the space must be at least 0.76m). Double-hull tankers offer greater protection of the environment from pollution in certain types of accident. (September 2002) for accelerating the phase-out of single-hull oil tankers will see most single-hull oil tankers eliminated by 2015 or earlier. MARPOL Annex VI Air: Will set limits on sulphur oxide and nitrogen oxide emissions from ship exhausts and prohibit deliberate emissions of ozone depleting substances. Many ship operators are already installing the equipment in anticipation of its final ratification. Environmental Control of water ballast for non-indigenous life and discouraging the introduction of foreign organisms to any ecosystem and the avoidance of toxic paints (GloBalst). With the International Convention on the Prohibition to Use Paints Containing Tributylitin (TBT), (approved in October 2001), the use of paints containing the antifoulant

TBT that, at even very low concentrations, is toxic to fish and other aquatic life is prohibited as of 1st Jan 2003 and by 1st Jan 2008 must be removed from hulls or sealed to prevent them from harming the marine environment. Security The IMO Conference on Maritime Security (December 2002), introduced the International Ship and Port Facilities Security Code (ISPS) - these new regulations will enhance ship and port security and avert shipping from becoming a target of international terrorism, the aim is to reduce risks to passengers, crews and port personnel on board ships and in port areas and to the vessels and their cargoes. Seafarer Conditions At the 29th session of the International Labor Organization's (ILO) Joint Maritime Commission (Jan 2001) a major agreement was announced, known as the Geneva Accord - this is designed to improve safety and working conditions in the maritime industry by formalizing a joint convention containing and updating all the most important existing ILO rules. It also agreed to update the ILO minimum wage for seafarers from $435 to $450 with effect from 1 January 2002 and to $465 (January 2003).

2.7 Ships and the Future An Industry View

With the new technology that is available on the market, it is important to understand if each side of the shipping industry, builder/manufacturer and owner, has the same views as to its future development. During the preparation of this Report questionnaires were to different categories of stake holders within the wider industry and the results received back, for the future needs and developments of ships and their equipment, provides an indication of the collective views. Builder For developing a new design or product, the overwhelming majority of ship builders and equipment manufacturers identified reliability as the most important aspect. Efficiency, simplicity of design and needs of the client were all

major views that provided the second category of importance. Only a small minority, however, considered the human factor in both crewing numbers and their training as important. With regard to major developments over the next 5 - 10 years, the ship builders and equipment manufacturers identified that decreased maintenance and increased reliability would play a major part, although main engines efficiency was a strong contender as well. The importance of IT did not rate very high with this group nor did the idea that ships will develop in size. In general, there was a feeling that ships getting larger were not probable. Owner The owners who responded identified efficiency and reliability as the major factors of purchase of the ship or equipment, followed by the needs of the client, this obviously recognises the fact that they will be selling a service with the ship and it must meet the quality definitions of needs and expectations of the customer. Again the personnel factors of the ship were not considered as significantly important. With regard to major developments in shipping, the owner respondents identified engine efficiency as the highest factor, and decreased maintenance and IT coming in second place. Again, they do not see larger vessels playing a significant role in shipping. A case study developed during the research is included. Buying or building The strategic building or purchase of a ship and its equipment is an enormous investment on the part of the owner/operator and the builder/manufacturer. The consequences of either party making the wrong decision are incalculable. The risks associated to the financial, commercial, social, safety, environmental and reputation aspects of building or buying incorrectly could have a catastrophic effect on the buyer or builders operation and future. Therefore, it is not surprising that both owners and builders thought the most important considerations in the sale of a ship or marine equipment

was reliability and efficiency of the design was the first choice, with the needs of the client as the next. It is also not surprising that builders cited simplicity of design as an important factor as it makes it easier for them to build. Future developments From the options of major developments identified during research, the collective opinion of respondents indicates that the future development of ships will not be based on size, as both builders and owners put larger ships as a low priority. The great majority thought that more efficient engines and decreased maintenance will lead future developments.

2.8 Main areas of future change

Other areas of change estimated for the next decade will be for legal, risk control, economic and efficiency reasons and, in many cases, they will affect existing ships or ships systems, and estimated to include: Legal The major alterations to ships and the way they operate will be imposed by changes in the international law. Both environmental, through MARPOL, and safety law, through SOLAS. Economic Economic factors related to the regional use of ships, e.g. ECs short sea trader initiative, and increasing the viability of national flags, through tax, will have a local effect, however the overall influence on OECD (or global) ship numbers and technology will be negligible. Risk Management The management of risk through adequate controls in all aspects of the ships operation is vital and owners or management have ensured that environmental considerations have had a high priority over the last forty years, certainly since the "Torrey Canyon" sank in 1967. The benefits of paying attention to environmental issues have been highlighted even more so since the Exxon Valdez grounded in 1989.

The possible catastrophic consequences to owners and managements business and reputation that ignore it have been well illustrated. IT Developments The constant growth of IT and communications are guaranteed, although it is hard to estimate the amount of operating ships that have access to a computer at present and impossible to estimate how many will be using them in the future, what is certain is that more ships will be presented with computers to make things easier for them to operate. If done correctly, the introduction of computerization should provide data that is of vast use, especially in safety operations where incidents and accidents can be analyzed to identify trends and prevent similar events occurring, and in commercial operations e.g. Electronic Data Interchange (EDI), and could provide a way forward in e-commerce to enhance shippings trading, logistics and transport procedures. Control Many current ship operators, owners or managers have also taken an IT route to provide better management; they have ships producing daily data that records almost every facet of shipboard operations, navigation, maintenance and cargo.

3. Chapter Three: Impact of Globalization on International Maritime Transport Activity 3.0 Introduction
Shipping has been an important human activity throughout history, particularly where prosperity depended primarily on international and interregional trade. In fact, transportation has been called one of the four cornerstones of globalization, along with communications, international standardization, and trade liberalization [Kumar and Hoffmann, 2002]7. Due to a number of technological, economic, and socio-cultural forces, only the rare country can keep itself fully isolated from the economic activities of other countries. Indeed, many countries have seen astonishing economic growth in the recent past due to their willingness to open their borders and markets to foreign investment and trade. This increased flow of knowledge, resources, goods, and services among our world's nations is called globalization, formally defined as the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets. (Merriam-Webster, www.merriamwebster.com/dictionary/globalization, accessed 2008).

3.1 Maritime Shipping and Goods Movement

Global goods movement is a significant element in the global freight transportation system that includes ocean and coastal routes, inland waterways, railways, roads, and air freight. In some cases, the freight transportation network connects locations by multiple modal routes, carrying out as modal substitutes (see Figure 1a). A primary example is containerized short-sea shipping, where the shipper or logistics provider has some degree of choice how to move freight between locations. However, international maritime transportation is more commonly a complement to other modes of transportation (see Figure 1b). This is particularly true for intercontinental containerized cargoes and for liquid and 14.Kumar, S and Hoffmann, J. 2002: Globalization, the maritime Nexus. In: Grammenos, C.Th. (ed.). Handbook of Maritime Economics and Business. LLP: London.
7

dry bulk cargoes, such as oil and grain. Here, international shipping connects roads, railways, and inland waterways through ocean and coastal routes.

Figure 1. Ocean shipping as (A) a substitute and (B) as a complement for other freight modes Source: First published in the IMO Study of Greenhouse Gases from Ships (Skjlsvik et al., 2000). Mode choice (especially for containerized cargo movement) involves balancing tradeoffs to facilitate trade among global corporations and nations.

3.2 The Global Economic Role of Maritime Shipping

Marine transportation is an integral, if sometimes less publicly visible, part of the global economy. The marine transportation system is a network of specialized vessels, the ports they visit, and transportation infrastructure from factories to terminals to distribution centers to markets. Maritime transportation is a necessary complement to and occasional substitute for other modes of freight transportation. For many commodities and trade routes, there is no direct substitute for waterborne commerce. (Air transportation has replaced most ocean liner passenger transportation and transports significant cargo value, but carries only a small volume fraction of the highest value and lightest cargoes; while a significant mode in trade value, aircraft moves much less global freight by volume, and at significant energy per unit shipped.) On other routes, such as some coastwise or short-sea shipping or within inland river systems, marine

transportation may provide a substitute for roads and rail, depending upon cost, time, and infrastructure constraints. Other important marine transportation activities include passenger transportation (ferries and cruise ships), national defense (Naval vessels), fishing and resource extraction, and navigational services (vessel-assist tugs, harbor maintenance vessels, etc.). Globalization is motivated by the recognition that resources and goods are not always in the same location with the populations that desire them and so global transportation services are needed (and economically justified if consumer demand is great enough). For example, until the 1950s, most crude oil was refined at the source and transported to markets in a number of small tankers [sized between 12,000 and 30,000 deadweight tonnage (dwt)]. However, economies of scale soon dictated that oil companies would be better off if they shipped larger amounts of crude from distant locations to refineries located closer to product markets. Similarly, rather than palletize grains, minerals, and other commodities, dry bulk cargo ships were designed to deliver cargoes in raw or semi-raw condition from where they were found or grown to processing facilities (e.g., mills and bakeries) closer to final market. Along with containerization and advances in cargo handling and shipboard technology, these measures reduced crew sizes and longshore labor requirements which also reduced the per-unit cost of ocean cargo transport. Lastly, globalization identified labor markets overseas that encouraged transport of semi-raw materials and intermediate products where manufacturing costs were lower. With low-cost petroleum energy for vessel propulsion, facilitated by vessel economies of scale, the per-unit costs of semi-finished and retail products were minimized by multi-continent supply chains. Today it is common for agriculture products to be harvested on one continent, shipped to another for intermediate processing, transported to a third continent for final assembly, and then delivered to market. For example, cotton grown in North America may be sent to African fabric mills, and then to Asian apparel factories before being returned to North America for sale in retail stores. Orange juice, wine, and other

products have also found markets on continents where seasonal or climatic limitations require an offshore source, or entered into competition with domestic production at higher labor costs.

3.3 Maritime Transformations Responding to Globalization

The first modern energy conversion in marine transportation was the shift from sail to combustion. Two primary motivators for energy technology innovation greater performance at lower cost caused this conversion. Figure 2 and Figure 3 illustrate how this shift was completed during the first half of the 20th Century, using data from Lloyds Register Merchant Shipping Return for various years. Essentially, newer and larger ships adopted combustion technologies as part of an economy of scale. These technologies enabled trade routes to emerge regardless of the latitudes without consistent winds (referred to as the doldrums), supporting both international industrialization and modern political superpower expansion. As shown in these figures, the conversion of fleet tonnage to the preferred technology was achieved much more rapidly than the phase out

Figure 2 Gross maritime shipping tonnages by vessel technology, 1900 2000 OECD

Figure 3 Number of ships by vessel technology, 1900 2000 - OECD Figure 2 and Figure 3 also show the conversion from steam to motor power. In 1948 steam ships accounted for 68% of the ships in the fleet and 79% of the fleet tonnage, while motor ships accounted for 29% of ships and only 20% of the tonnage; sail still powered 4% of vessels but only 1% of registered ship tonnage. By 1959, motor ships accounted for 52% of vessels and 39% of registered tonnage in the fleet, and in 1963 motor ships represented 69% of vessels and 49% of registered tonnage. By 1970, motor ships dominated the fleet both in terms of ships and cargo tonnage, with 85% and 64%, respectively. After the fuel conversion was implemented, the next big shift was to more fuelefficient marine diesel engines through gains in thermal efficiency in converting energy potential of the fuel into mechanical work. Engine efficiencies increased from 35% to 40% in 1975 to more than 50% percent today [Corbett, 2004]. This and other technological advancements allowed maritime shipping to meet the transportation demands driven by a growing globalized economy. Figure 4 shows the increases in gross tonnage in the worldwide fleet since 1948 by vessel flag.

Globally, gross tonnage has increased rapidly, even though vessel flags have largely transitioned from OECD nations to others.

Figure 4 Gross tonnage by vessel flag, 1948 2006

3.4 Energy and Environmental Impacts of Maritime Shipping The expansion of goods movement to meet the needs of a globalized world does not come free. In particular, there are a number of energy and environmental impacts associated with the movement of goods. For example, the energy use and emissions associated with transporting freight can be significant.

3.5 Environmental Impacts of maritime activity Environmental impacts from ocean shipping are several, and they can be summarized in different contexts. The environmental impacts of ocean shipping will be categorized as either episodic or routine. These designations help to explain why some aspects of ocean shipping, such as stack emissions, are so challenging to address. Example environmental impacts under this taxonomy are listed in Table 1. Some pollution related to ocean shipping is not directly from the ships, but from efforts to serve the ocean shipping sector through port infrastructure maintenance and fleet modernization. Episodic environmental events Routine environmental events Vessel-based Oil spills Engine air emissions Ocean dumping Invasive species introductions (ballast water/hull fouling) Sewage discharges Hull coating toxics releases Oily wastewater Underwater noise Vessel collisions Ship-strikes with marine life Port-based Dredging Stormwater runoff Port expansion Vessel wake erosion Ship construction, breaking Cargo-handling air emissions Table 1: Overview of types of ocean shipping pollution Source OECD 3.5.1 Taxonomy of Environmental Impacts
Episodic pollution discharges are among those best understood by the commercial industry and policy makers, as evidenced by the international conventions and national regulations addressing them. The dominant mitigation approach is to prohibit pollution episodes from occurring (as in ocean dumping), to design systems that are safer (as in double-hulls to prevent oil spills or traffic separation schemes to avoid collisions), to confine activities that produce untreated discharges to safer times or locations (e.g., environmental windows for dredging), to require onboard treatment before discharge (e.g., oily water separators), and/or to provide segregated holding and transfer to reception facilities at port (as in sewage handling). 44. Routine pollution releases are different than episodic discharges because they represent activities necessary for the safe operation of the vessel, whether at sea or in port. Regulation of routine releases has lagged policy action to

address episodic discharges, partly because these impacts were not as well understood in the past, and partly because operational behavior must change and/or new technology is required.

3.5.2 Air Pollution from Maritime Shipping Many efforts are now underway to reduce air pollution from ships, which have been shown to cause significant human health problems [Corbett and Winebrake, 2007; Corbett et al., 2007]. A number of emissions control technologies and operational strategies are in use or currently being evaluated, especially for pollutants such as NOx (Nitrogen oxides). These emissions controls have been categorized as either pre-combustion, in-engine, or postcombustion controls [Corbett and Fischbeck, 2002]. A list of technologies for selected pollutant reductions are shown in Table 2. It should be noted that many of these technologies require increased energy demand, and therefore increases in CO2 emissions. This suggests that technology alone may not solve environmental issues, and that alternative energy sources or more sustainable freight logistics or operations may play a role. Target Pollutant Control technology Stage NOx Fuel water emulsification Pre-combustion NOx Humid air motor NOx Combustion air saturation system NOx Aftercooler upgrades In-engine NOx Engine derating NOx Injection timing delay NOx, SOx, PM, CO2 Engine efficiency improvements NOx Selective catalytic reduction Post-engine SOx Seawater scrubbing PM Diesel particulate filters PM Diesel oxidation catalysts CO2, energy ratio pollutants Hull form Vessel designs CO2, energy ratio pollutants Propeller
Table 2: List of example air pollution control technologies for maritime shipping

Source OECD

3.5.5 Invasive Species Another important environmental problem due to globalization is the introduction of invasive species [Bright, 1999]8. Research consistently identifies shipping (hull fouling, solid and water ballast) as a major invasion pathway since the 1500s when global maritime trade established routine intercontinental waterborne routes. [Ricciardi, 2006; Ruiz et al., 2000a; Ruiz et al., 2000b; Wonham and Carlton, 2005]. Native species can be transported by ships many thousands of miles and then released into non-native waters. These nonnative species sometimes have the capacity to become invasive, i.e., they can reproduce rapidly and tip sensitive species balance that often exists in a given ecosystem.

Bright, Christopher. Invasive Species: Pathogens of Globalization. Foreign Policy 116 (1999):
8

4. Chapter Four: Developing an Effective Maritime Education and Training System 4.0 Introduction
The Training should cover the application of training in the wider shipping industry. It provides general information on the present provision of training and where the future lies, with regard to: the legal and voluntary provisions for seafarer training a broad discussion on the training that is available for office the results of industrial views on training from owners, observations on the future development of seafarer training

personnel builders, employers, seafarers, and Training in shipping is carried out in most countries of the world and 70% of all maritime training organizations are situated in OECD countries. Amongst all the national diversity of thirty countries there is little conformity in the general training of people and, similarly, each country has developed its own specifics for a maritime education system.

4.1 Maritime Education

Maritime education can be roughly divided into four main areas, safety, technical, commercial and everything else, although these areas do overlap extensively and must be considered individually: Safety Safety training relates to the crew, ship security, cargo and environment and is covered by the IMO: STCW, SOLAS and MARPOL Conventions and requirements. It will also include Certification for personnel in Watchkeeping Competences, fire-fighting, Oil Tanker Safety and Dangerous

Cargoes that can be obtained by attending courses and passing assessments. Training for all the above mentioned is also compulsory onboard the ship through demonstrations, drills and exercises that cover the safety equipment carried, e.g. life jackets, fire extinguishers etc, and the processes and procedures for emergencies onboard, e.g. collision, pollution etc. Participation of onboard training must be logged. Technical Technical training is closely related to safety but not mandatory, apart from broad interpretations of the requirements of the ISM Code, which relate to ship familiarization and understanding the Safety Management System (SMS). It covers the highly sophisticated equipment. Commercial Training covers the business related activities of the ship and its operation, the procedures and processes for complying with the contractual requirements of the operation, Other areas of training include management training Topics of these other areas will include all the areas of finance and budgets, personnel or human resources, marketing, public relations, administration, training provision and secretarial skills.

4.2 Training
It is understood that there is a wide diversity of training subject areas expected to be provided to seafarers, but there is, also, a wide diversity in the methods of training, routes and media for delivering the education and training identified. The Training should covers the application of training in the wider shipping industry. It provides general information on the present provision of training and where the future lies, with regard to: the legal and voluntary provisions for seafarer training a broad discussion on the training that is available for office

personnel

the results of industrial views on training from owners, builders, observations on the future development of seafarer training

employers, seafarers, and

4.2.1 Safety Training The major influence on the safe operation of the ship is the International Maritime Organization (IMO), the UN body that regulates the safety aspects of ships and shipping, including people, operations, cargo and the environment. The prime authority on training is the International Convention on Standards of Training, Certification and Watch-keeping for Seafarers (STCW) 1995 that came into full force on 1st February 2002. The legislation lays down the fundamental training requirements for all people at sea who can affect the safety of the ship, its crew and the environment. Each role onboard is classified as one degree of the followings: "Management level" - the level of responsibility associated with serving as master, chief mate, chief engineer Officer or second engineer Officer on board a seagoing ship; "Operational level" - the level of responsibility associated with serving as Officer in charge of a navigational or engineering watch or as designated duty engineer for periodically unmanned machinery spaces or as radio operator on board a seagoing ship, to maintain direct control over the performance of all functions within the designated area of responsibility in accordance with proper procedures and under the direction of an individual serving in the management level for that area of responsibility; "Support level" - the level of responsibility associated with performing assigned tasks, duties or responsibilities on board a seagoing ship under the direction of an individual serving in the operational or management level.

4.2.2Technical Training The ships either built or will be build in the future carry complex and technically demanding equipment and systems. They also carry more manual and automatic equipment, systems, procedures and processes, than ever before. The international rules and regulations that need to be understood and complied with are also being increased regularly. One area of ship design and technology that continues apace is IT (see Technical Review). Computers get more complex and programs get more encompassing. Computer training is almost non-existent in offices and at sea, thus Officers, especially senior Officers, spend a large proportion of the daily routine typing data into the terminal that will link the ship to the ship management server. One point of entry is he catchword for any computerized management system, and the one point is normally the ship logging ROB (oil remaining on board), days run, maintenance carried out, money spent and all the other items that make up the operational finances of ship management. That means that the person entering the data is one of the highest paid members of the crew and the least trained in typing skills. 4.2.3 Commercial Training There are no internationally recognized standards of marine commercial training or qualifications. Many organizations run training seminars and workshops in a multitude of subjects from ISM Code to safe handling of cargo; however, most are not to a recognized standard. In addition there are recognized bodies such as the Nautical Institute and the Institute of Chartered Shipbrokers that have welldeveloped distance learning programs and college courses, syllabus and qualifications, which are recognized in the international shipping industry. They also have branches and examinations centers in many parts of the world. 4.2.4 Other Training This sector of training covers everything else. It can be covered generically by management studies and will allow good junior Officers to become better seniors. In addition, this area covers what to say in a contingency, how is the master or chief engineer to react if a mass of microphones are thrust at them as a consequence of an

incident. Do people learn marketing and public relation skills naturally? Finally, crews are expected to interface with any number of cultures with whom they have no similarities in food, ethics or language and the only common factor is they all work on the same ship. In amongst this polyglot crew, the senior Officers of the ship are expected to provide help and instruction, and keep the job going. Culture today plays a vital part in the safety of the ship.

4.3 Training Options

International seafarer training should be reviewed with the intention of making it more responsive to the ship's actual needs regarding technical, commercial, personnel and management aspects of the ship's operation; the training courses could be one of the followings: Structured Course The structured system of nautical training has always provided the most common method of training for seafarers. With classes, a very strict syllabus and, normally, much homework of previous examinations the student often see it as a crammer course to get through the statutory examinations and thus resume their career at sea. It is a difficult way of providing education and development to participants. There are few, if any, other careers where a person is still required to sit an examination and, on passing, wait for a period of time before sitting the next part which often goes over many aspects of the previous course, STCW 95 provisions. Short course, Seminar and Workshops Many regulatory qualifications can only be obtained through attendance at a short course, e.g. Oil Tanker Safety, these 2 5 day course would provide specific information and knowledge in the most economical period. Often residential, that allows discussion to proceed after class hours, and of smaller size, that allows everyone to participate, the courses can be run easily in most locations. Distance Learning

Many of the post certificates of competence and institute tuition is carried out through distance learning. The commitment of a student to this type of has to be of the highest order. Without commitment the student does not complete the course at a financial loss to himself / herself and a sense of failure with the course provider. Often distance learning is intermingled with short sharp burst of seminar work at a convenient location. Computer Based Training (CBT) Many organizations are turning to CBT to provide a discrete individual training tool. In a situation where a mass audience of more than one are impossible CBT comes into its own by allowing each person. The individuals efforts and results are computer scored, identified and recorded. The student knows how they are doing and can be made to redo certain items that were below par. The final results are transmitted to the master and offices training function for appraisal. Subjects for this type of training cover a wide area and there are many professional companies that can produce bespoke / tailor made courses. Mentoring Possibly; the most effective ways of transferring practical knowledge and skills, for seafarers, is to provide a one-to-one instructor that the student can call upon for assistance and help. Whether it is splicing a wire, taking a sight, or stripping a piece of machinery, the learner will get a far better and safer feel for the process if they see somebody do it well and then carries it out themselves. Practical skills can only be perfected by practice.

The Availability And Training Of Seafarers Page 65

5. Chapter Five: The Global Seafarers Labor Market 5.0 Introduction

It is argued in this submission that many and perhaps even most of the problems relating to the worlds seafaring labor force have their origins in the twin process of flagging out and deregulation which began in the later 1970s, gathered momentum in the 1980s and, continued through into the 1990s, albeit at a diminishing pace. After a discussion of regulatory systems in general and maritime regulation in particular, the causes and consequences of deregulation are then explored in some detail and with a focus on the development of a global labor market for seafarers and its implications for training, education, certification and employment conditions. On these issues there is some emphasis on the need to develop optimally efficient crews.

5.1 Regulation and Deregulation

The term "regulation" as used here is borrowed from political science and has a particular meaning. It refers to networks of institutions and organizations which, through a common interest in some particular area of human activity, seek to negotiate in appropriate forums and in voluntary association with the state, a consensual system of law, rule, convention and customary practice. Regulation therefore means the application of law, rule, convention and custom as negotiated by the interested parties and as operated by organizations and agencies commonly accepted as legitimate. This definition of regulation does of course come close to specifying the essential conditions for a democratic society. Without a legitimate rule of law, the possibility of negotiated settlements among organized interested groups and the existence of rule-governed agencies empowered to operationalize those negotiated settlements, there can be little prospect of functioning democracy and every likelihood of disorder and dislocation with unpredictable outcomes.

The forward-looking approach to training and education was barely launched when it was undermined and eventually discarded by the fallout from the 1970s crises and the ensuing search for cheap offshore solutions to seafaring labor. The oil crises of the 1970s, the slump in world trade, a glut of ships and the availability of offshore flags offering the symbols but none of the substance of developed modern states, saw waves of ships moving into the unregulated space of offshore. These one-off survival strategies provided short-term economic relief. But the price was the dislocation of a regulatory system which had provided the world with a labor force of steadily improving quality. The consequences of the above mentioned economical crises had the dynamic and transnationally influential for three main reasons: 1. 2. 3. the great majority of seafarers and ship-owners were citizens of the these entities were at comparable levels of technical, political and there were well-established routes for the transnational transfer of same political entities (states or coalitions of states), administrative development; and technical, operational and socio-economic knowledge.

5.2 World Fleet

Lloyds Register Fairplay provided data for 47740 commercial vessels. Of these vessels, 45.9% use a foreign flag. Larger and cargo vessels are more likely to use a foreign flag than smaller and miscellaneous or passenger vessels. As a consequence, the proportion of foreign flagged tonnage is even higher than is the case for the number of vessels: Only 34.6% of the worlds GT use the national flag, i.e., almost two out of three gross tonnes are registered under a foreign flag. Big differences exist between operator countries. In terms of vessel numbers, Japan is the most important operator country. Regarding GT, the Greek operators control the biggest proportion of the worlds tonnage. Of the major 30 operator countries, Iran (96%) and India (88%) have the highest proportion of

nationally flagged GT, whereas operators based in Monaco (1%), Switzerland (7%) and Belgium (9%) are least likely to use their national flag.

5.3 The Global Labor Market

The global labor market is now a reality for most of the world's seafarers except for those working in the coastal and near-sea trades of the world's least economically developed regions. There are, of course, still a largish number of internationally trading, nationally-flagged ships crewed by nationals. But it is surely a sign of the epoch that the PRC, now the only nation with a sizeable fleet of merchant ships crewed by nationals who have been trained and certificated in a well-regulated national system of state-funded colleges and universities, also licenses manning agents to provide seafarers for foreign-flagged ships. Elsewhere in the world, the national flag flown by a ship only corresponds with the nationality of a significant proportion of the crew where employment costs are considerably lower than those aboard internationally crewed ships. It is taken for granted and therefore passes unremarked that in the worlds larger flag fleets Panama, Bahamas, Liberia, Cyprus and Malta - nationals of these flag states do not feature in any known collections of manpower statistics. Furthermore, the second register fleets and increasingly the first register fleets in most OECD countries as well as those flagged in Hong Kong and Singapore, all have ships where dwindling numbers of crew members are nationals. These well-known and simple facts all signify enormous changes in the labor market for seafarers. Mixed nationality crews are hardly a new phenomenon but what makes the modern mixed nationality crew distinctive is the extent to which it is consciously composed by crew managers evaluations of the level of competencies and the probity of certification procedures on a country by country basis.

The efficiency of labor has two basic dimensions: technical competency acquired through training, education and experience, and effort commitment

which is primarily determined by the social and economic conditions of employment. In short, the efficiency of labor is determined by: a) prior investment in training, education and productive experience and b) current investment in conditions of employment. These various aspects of labor efficiency were exactly the issues that regulatory systems evolved to address because it was recognized that markets left to themselves were unable to satisfactorily deliver the required efficiencies. Fortunately for the future development of the shipping industrys seafaring labor market there are some indications that regulation is back on the agenda,
but before we examine these developments and discuss how they might be further advanced, it might be useful to summarize the global labor markets principal contemporary characteristics: trade low and diminishing correspondence between flag of ship and crew absence of system-wide regulation nationality seafarers of any nationality are potential employees efficient transnational linkages between crew managers, manning no formal barriers to entry beyond certification compliance widespread multinational crewing stability depends upon the extent and timing of fluctuations in world

agents and national labor markets

"Optimally efficient labor" is not actually a term of common currency although it could be reasonably taken as at least approximating to the implicit objectives of the most advanced of the embedded maritime nations. Similar objectives may also be inferred from those quality assurance protocols which on personnel matters speak of aiming for excellence and developing and maximizing skills and potentialities.

5.4 Global Regulation

Despite its initial economic attractiveness to shipowners, the resort to flags of convenience and second registers as a means of avoiding labor market regulation has not delivered any long term gains. Flagging out may have provided shipowners with the opportunity to make short-term labor cost savings but these savings could only be made once. Concurrent with the flagging out process were substantial reductions in manning levels but here, too, there is no longer any scope for further savings. The longer term consequence for the shipping industry of flagging out and reduced manning levels is a manpower crisis.

The embedded "western" maritime nations (sometimes misleadingly described as the "traditional maritime nations"), whether large like Japan, the UK and Norway or smaller such as Belgium, France and Australia, were all left with considerable residues of skills and experience in seafaring and the politics and

procedures of regulation, but with greatly diminished fleets and skeletal regulatory structures.

Comparison of Crewing Costs Under Different Regimes (Source : Lloyds Shipping Economist , Vol. 11 , No . 11, Nov. 1988)

6. Chapter Six: Two-way student movement between the VET and higher Education 6.0 Introduction
Generally, research into student traffic between the VET (Vocational Education and Training) and higher education sectors has focused on movement from VET, and particularly the TAFE (Technical and Further Education) component of VET, to higher education, i.e., unidirectional and perhaps upwards movement. Much emphasis has been given to investigating articulation, credit transfer, recognition of prior learning, general transition issues, and experiences and performance of TAFE students transferring to universities. Parkinson in his major national studies in the mid-1980s, for example, investigated a range of matters surrounding relationships between the TAFE and

higher education sectors and movement of students from TAFE to CAEs and universities (Parkinson (1985), Parkinson et al. (1986)). The International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), 1978, as amended, sets the standards of competence for seafarers internationally amongst its provisions is a requirement for Parties to the Convention to communicate information to IMO on the measures adopted to implement the Convention nationally. That information is subject to scrutiny to ensure that the Convention is being given 'full and complete effect' and, if this is so, the Party features on the "List of confirmed STCW Parties" and "Information related to Reports of Independent Evaluation".

6.1 International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978
6.1.1 Amendment Procedure Amendments to the 1978 STCW Convention's technical Annex may be adopted by a Conference of STCW Parties or by IMO's Maritime Safety Committee, expanded to include all Contracting Parties, some of whom may not be members of the Organization. Amendments to the STCW Annex will normally enter into force one and a half years after being communicated to all Parties unless, in the meantime, they are rejected by one-third of the Parties or by Parties whose combined fleets represent 50 per cent of world tonnage. 6.1.2 The 2010 amendments The Manila amendments to the STCW Convention and Code were adopted on 25 June 2010, marking a major revision of the STCW Convention and Code. The 2010 amendments are set to enter into force on 1 January 2012 under the tacit acceptance procedure and are aimed at bringing the Convention and Code up to date with developments since they were initially adopted and to enable them to address issues that are anticipated to emerge in the foreseeable future.

Amongst the amendments adopted, there are a number of important changes to each chapter of the Convention and Code, including:

Improved measures to prevent fraudulent practices associated with

certificates of competency and strengthen the evaluation process (monitoring of Parties' compliance with the Convention);

Revised requirements on hours of work and rest and new

requirements for the prevention of drug and alcohol abuse, as well as updated standards relating to medical fitness standards for seafarers;

New certification requirements for able seafarers; New requirements relating to training in modern technology such as New requirements for marine environment awareness training and New training and certification requirements for electro-technical Updating of competence requirements for personnel serving on

electronic charts and information systems (ECDIS);

training in leadership and teamwork;

officers;

board all types of tankers, including new requirements for personnel serving on liquefied gas tankers;

New requirements for security training, as well as provisions to

ensure that seafarers are properly trained to cope if their ship comes under attack by pirates;

Introduction of modern training methodology including distance New training guidance for personnel serving on board ships New training guidance for personnel operating Dynamic Positioning

learning and web-based learning;

operating in polar waters; and

Systems.

6.1.3 The 2006 amendments The amendments added new minimum mandatory training and certification requirements for persons to be designated as ship security officers (SSOs). The amendments to the STCW Convention and to parts A and B of the STCW Code include Requirements for the issue of certificates of proficiency for Ship Security Officers; Specifications of minimum standards of proficiency for ship security officers; and Guidance regarding training for Ship Security Officers. Further amendments to part A of the STCW Code added additional training requirements for the launching and recovery of fast rescue boats. The amendments have been prepared in response to reports of injuries to seafarers in numerous incidents involving the launching and recovery of fast rescue boats in adverse weather conditions.

6.2 Ensuring compliance with the Convention Parties to the Convention are required to provide detailed information to IMO concerning administrative measures taken to ensure compliance with the Convention. This represented the first time that IMO had been called upon to act in relation to compliance and implementation - generally, implementation is down to the flag States, while port State control also acts to ensure compliance. Under Chapter I, regulation I/7 of the revised Convention, Parties are required to provide detailed information to IMO concerning administrative measures taken to ensure compliance with the Convention, education and training courses, certification procedures and other factors relevant to implementation.

6.3 Port State control The revised Chapter I includes enhanced procedures concerning the exercise of port State to allow intervention in the case of deficiencies deemed to pose a danger to persons, property or the environment (regulation I/4). This can take place if certificates are not in order or if the ship is involved in a collision or

grounding, if there is an illegal discharge of substances (causing pollution) or if the ship is manoeuvred in an erratic or unsafe manner, etc. Other regulations in chapter I include: 1. Measures are introduced for watchkeeping personnel to prevent fatigue. 2. Parties are required to establish procedures for investigating acts

by persons to whom they have issued certificates that endanger safety or the environment. Penalties and other disciplinary measures must be prescribed and enforced where the Convention is not complied with. 3. Technical innovations, such as the use of simulators for training and assessment purposes have been recognized. Simulators are mandatory for training in the use of radar and automatic radar plotting aids (regulation I/12 and section A-I/12 of the STCW Code). 4. Parties are required to ensure that training, certification and other procedures are continuously monitored by means of a quality standards system (regulation I/8). 5. Every master, officer and radio operator are required at intervals not exceeding five years to meet the fitness standards and the levels of professional competence contained in Section A-I/11 of the STCW Code. In order to assess the need for revalidation of certificates after 1 February 2002, Parties must compare the standards of competence previously required with those specified in the appropriate certificate in part A of the STCW Code. If necessary, the holders of certificates may be required to undergo training or refresher courses (regulation I/11).

6.4 The STCW Code The regulations contained in the Convention are supported by sections in the STCW Code. Generally speaking, the Convention contains basic requirements which are then enlarged upon and explained in the Code.

6.4.1 Part A This part of the Code is mandatory. The minimum standards of competence required for seagoing personnel are given in detail in a series of tables. Chapter II of the Code, for example, deals with standards regarding the master and deck department.

6.4.2 Part B This part of the Code contains recommended guidance which is intended to help Parties implement the Convention. The measures suggested are not mandatory and the examples given are only intended to illustrate how certain Convention requirements may be complied with. However, the recommendations in general represent an approach that has been harmonized by discussions within IMO and consultation with other international organizations.

6.5 The White List

The first so-called White List of countries deemed to be giving full and complete effect to the revised STCW Convention (STCW 95) was published by IMO following the 73rd session of the Organizations Maritime Safety Committee (MSC), meeting from 27 November to 6 December 2000. It is expected that ships flying flags of countries that are not on the White List will be increasingly targeted by Port State Control inspectors. A Flag state Party that is on the White List may, as a matter of policy, elect not to accept seafarers with certificates issued by non White List countries for service on its ships. If it does accept such seafarers, they will be required by 1 February 2002 also to have an endorsement, issued by the flag state, to show that their certificate is recognized by the flag state.

6.5 Resolutions adopted by the 1978 Conference The 1978 Conference which adopted the STCW Convention also adopted a number of resolutions designed to back up the Convention itself. The resolutions, which are

recommendatory rather than mandatory, incorporate more details than some of the Convention regulations.

6.5.1 Resolution 1 Basic principles to be observed in keeping a navigational watch. An annex contains a recommendation on operational guidance for officers in charge of a navigational watch. 6.5.2 Resolution 2 Operational guidance for engineer officers in charge of an engineering watch. An annex to the resolution deals with engineering watch underway and at an unsheltered anchorage. 6.5.3 Resolution 3 Principles and operational guidance for deck officers in charge of a watch in port. Detailed recommendations are contained in an annex. 6.5.4 Resolution 4 Principles and operational guidance for engineer officers in charge of an engineering watch in port. Recommendations are in an annex. 6.5.5 Resolution 5 Basic guidelines and operational guidance relating to safety radio watchkeeping and maintenance for radio officers. A comprehensive annex is divided into basic guidelines and safety radio watchkeeping and maintenance. 6.5.6 Resolution 6 Basic guidelines and operational guidance relating to safety radio watchkeeping for radio telephone operators. 6.5.7 Resolution 7 Radio operators. Four recommendations are annexed to this resolution dealing with (i) minimum requirements for certification of radio officers; (ii) minimum requirements to ensure the continued proficiency and updating of knowledge for radio operators; (iii) basic

guidelines and operational guidance relating to safety radio watchkeeping and maintenance for radio operators; and (iv) training for radio operators. 6.5.8 Resolution 8 Additional training for ratings forming part of a navigational watch. Recommends that such ratings be trained in use and operation of appropriate bridge equipment and basic requirements for the prevention of pollution. 6.5.9 Resolution 9 Minimum requirements for a rating nominated as the assistant to the engineer officer in charge of the watch. Recognizes that suitable training arrangements are not widely available. Detailed requirements are contained in an annex. 6.5.10 Resolution 10 Training and qualifications of officers and ratings of oil tankers. Refers to resolution 8 adopted by the International Conference on Tanker Safety and Pollution Prevention, 1978 (TSPP), which deals with the improvement of standards of crews on tankers. Recommendation in annex. 6.5.11 Resolution 11 Training and qualifications of officers and ratings of chemical tankers. 6.5.12 Resolution 12 Training and qualifications of masters, officers and ratings of liquefied gas tankers. 6.5.13 Resolution 13 Training and qualifications of officers and ratings of ships carrying dangerous and hazardous cargo other than in bulk. 6.5.14 Resolution 14 Training for radio officers. Detailed recommendations in annex.

6.5.15 Resolution 15 Training for radiotelephone operators 6.5.16 Resolution 16 Technical assistance for the training and qualifications of masters and other responsible personnel of oil, chemical and liquefied gas tankers. Refers to requirements in several Convention regulations and recognizes that training facilities may be limited in some countries. Urges Governments which can provide assistance to do so. Back to top 6.5.17 Resolution 17 Additional training for masters and chief mates of large ships and of ships with unusual manoeuvring characteristics. Is designed to assist those moving to ships of this type from smaller vessels, where characteristics may be quite different. 6.5.18 Resolution 18 Radar simulator training. Recommends that such training be given to all masters and deck officers. 6.5.19 Resolution 19 Training of seafarers in personal survival techniques. A recommendation is annexed. 6.5.20 Resolution 20 Training in the use of collision avoidance aids. 6.5.21 Resolution 21 International Certificate of Competency. Invites IMO to develop a standard form and title for this certificate. 6.5.22 Resolution 22 Human relationships. Emphasizes the importance to safety of good human relationships between seafarers on board.

6.5.23 Resolution 23 Promotion of technical co-operation. Records appreciation of IMO's work in assisting developing countries to establish maritime training facilities in conformity with global standards of training and invites the organization to intensify its efforts with a view to promoting universal acceptance and implementation of the STCW Convention. 6.6 IMO Model Courses The program of model training courses developed out of suggestions from a number of IMO Member Governments, following the adoption of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, (STCW), 1978, as amended. Assisted by contributions from various Governments, IMO has designed the series of courses to help implement this Convention and, further, to facilitate access to the knowledge and skills demanded by increasingly sophisticated maritime technology. The course introduced for MET students should full fill the followings: The courses are flexible in application: maritime institutes and their teaching staff can use them in organizing and introducing new courses or in enhancing, updating or supplementing existing training material. The model courses each include a course framework (detailing the scope, objective, entry standards, and other information about the course), a course outline (timetable), a detailed teaching syllabus (including the learning objectives that should have been achieved when the course has been completed by students), guidance notes for the instructor and a summary of how students should be evaluated. Many courses include background information for students in a compendium. For some titles these compendia are sold separately from the course. Model courses related to the STCW Convention were revised and updated after the major revision of the Convention in 1995.

Consequent to the adoption of the Manila Amendments in 2010 to

the STCW Convention and Code, some of the model courses related to the STCW Convention and Code are being revised and updated.

6.8 Maritime Training Institutions The STCW Convention requires that training leading to the issue of a certificate is "approved". The International Maritime Organization does not approve any training courses or institutes. This is a privilege and responsibility of Member Governments who are Parties to the STCW Convention. Approval is normally given by the Maritime Administration of an STCW Party in accordance with the Convention requirements. Amongst other things, the Convention requires that training and assessment of seafarers are administered, supervised and monitored in accordance with the provisions of the STCW Code; and those responsible for training and assessment of competence of seafarers are appropriately qualified in accordance with the provisions of the Code. The initial approval of a maritime training program by a Maritime Administration might include assessment of items such as those listed below in order to ensure that the training institute or training program meet the appropriate STCW Convention standards: Scope and objectives of the training - e.g. to meet the requirements Minimum entry standards - age, sea experience, other training, Intake limitations, student/staff ratio etc. Staff qualifications, experience in subject, teaching skills, Facilities and equipment necessary to meet objectives. The written programs, syllabus, timetable and course material. of STCW regulation II/1. medical fitness etc.

assessment skills.

Method of training: lectures, practical, videos etc and percentage of Assessment: methods: examination, practical, continuous Certification to be issued on completion to meet STCW Maintenance of student and other records. Security of information. Quality standards system requirements to ensure standards are

time devoted to each. assessment etc. requirements.

maintained.