Can the Philippines' seafaring sector survive?

Can the Philippines' seafaring sector survive?
October 11, 2022 https://www.manilatimes.net/2022/10/11/tmt-anniversary/can-the-philippin...

The challenges and threats have come at a time when there is strong demand for Filipino seafarers amid a weakening pandemic, the gradual revival of the global cruise industry, and the supply crisis caused by Russia's invasion of Ukraine.

THE Philippines' multibillion-dollar manning industry is in a more precarious situation today than at any time in the past. Not even almost failing to make it to the International Maritime Organization (IMO) White List some 20 years ago comes close to the situation the sector faces now.

Worse, the employability of Filipino seafarers faces serious challenges and threats that can be said to be self-inflicted. The situation is unfortunate as the sector — specifically in terms of deployment — is struggling to return to pre-pandemic footing.

The challenges and threats have come at a time when there is strong demand for Filipino seafarers amid a weakening pandemic, the gradual revival of the global cruise industry, and the supply crisis caused by Russia's invasion of Ukraine.

Overseas deployment of seafarers has increased after it was halted at the height of the pandemic but is yet to return to pre-2020 levels. Data from the Department of Migrant Workers (DMW) show that from 507,730 sea-based workers deployed in 2019, this dropped to 217,233 in 2020 before rising to 345,517 in 2021. In the first half of 2022, 135,954 sea-based workers were deployed but this figure does not include some cruise ship workers, the DMW said.

However, encouraging, the gradual recovery in deployment could be short-lived if the serious challenges and threats confronting the manning sector are not sufficiently addressed.

The first comes from the rampant "ambulance-chasing," which was not as pronounced as before, that followed when industry leaders succeeded in pushing for the Philippines' inclusion in the IMO White List.

While the practice has been declared illegal, unscrupulous lawyers looking to take cuts of death and accident payouts to seafarers' families have driven foreign employers from the country to other seafarer-supplying nations where ambulance-chasing is virtually absent.

Another threat comes from the European Commission (EC), which has told the Maritime Industry Authority (Marina) that "there are a number of serious deficiencies in the Republic of the Philippines' STCW system." STCW stands for Standards of Training, Certification and Watchkeeping.

Following an assessment, the EC found nine major shortcomings and 23 observations in the country's implementation of the STCW Convention for Seafarers 1978 based on a final audit by the European Maritime Safety Agency (EMSA) in February and March 2020.

Many of the shortcomings and observations have persisted since the EMSA started checking on the country's compliance with the STCW Convention in 2006.

Henrik Hololei, director-general of the Directorate-General for Mobility and Transport, told the Marina last year that should the EC find "that these deficiencies have not been rectified, the European Commission could withdraw the EU-wide recognition of the Republic of the Philippines' certificates."

If the Committee on Safe Seas includes a review of an action plan submitted by the Philippines in its agenda, a final verdict could be issued in November.

Derecognition means that Filipino marine officers on European-flagged ships will only remain employed for the duration of their contracts or until their certificates of competency expire. Some 40,000 to 50,000 Filipino officers could be barred from working on ships flying the flags of European Union members. It will also severely impact Philippine-registered ships entering European ports.

Seeking to allay the EC's fears, Marina has said that its 10-year Maritime Industry Development Plan (MIDP) includes long-term initiatives and measures to ensure full Philippine compliance with the international convention. The agency also pointed to its Strategic Voyage Plan 2028 that details certain MIDP deliverables.

Another commitment given to the EC is the expansion of Marina's organizational structure. Additional regional offices are proposed to be created and more workers will be hired.

In 2021, Marina submitted to the Department of Budget and Management a proposed organizational structure and staffing pattern based on recommendations made by the Development Academy of the Philippines. This, however, has been overtaken by a rightsizing program implemented by the new government.

The third threat, lastly, came after Marina tapped technical experts to independently evaluate the Philippines' compliance with the STCW Convention in order to remain on the IMO White List. As a party to the convention, the country has to submit a compliance report based on the independent evaluation (IE).

A Marina source said the Maritime Safety Committee would be issuing a list of compliant countries in July next year.

Conducted in March and April, the IE was more thorough than the EMSA audit. It included visits to the Marina, Commission on Higher Education, Department of Health, three maritime schools, two training centers, and two assessment centers.

For Marina alone, the IE identified 11 nonconformities. The results more or less validated the EC conclusion.

The independent evaluators will be back this month to check if Marina has made the necessary changes. Many hope that these are rectified in time, otherwise the country risks being removed from the IMO White List.

The manning business that the private sector has painstakingly built in more than 50 years, as well as the jobs of hundreds of thousands of Filipino seafarers, are on the line.

TMT Maritime