Strongest seafarer wage increase: China

Strongest seafarer wage increase: China
Drewry 05/06/2024 https://www.hellenicshippingnews.com/strongest-seafarer-wage-increase-ch...

China has seen the strongest increase in seafarer wages across the main seafaring countries in international shipping in recent years, according to the latest Manning Annual Review and Forecast report published by global shipping consultancy Drewry.

China is a large and, more importantly, growing supply source of seafarers. It maintains its position as the second-largest supplier of seafarers to international merchant shipping, accounting for around 11% of the total sea-based workforce. The supply of officers is growing and although domestic flagged vessels are the biggest employer, officers are increasingly found in international employment on all vessel types. For candidates considering a career at sea in ratings ranks, the employment market within mainland China remains strong. Combined with growth of the Chinese economy, there is a robust demand for skilled labour, which competes directly with the option of work at sea. This has led to higher-than-usual pay increases for ratings where employers have to compete not just with other options at sea but also the on-shore demand.

The strong wage growth rate is clearly visible in the dry sector (see chart), where Chinese growth rate has exceeded 5%. However, wage increases can be significantly different between sectors and seafarer ranks, and between nationalities. A detailed analysis of these is available in our report.