Overcoming Uncertainties in the Maritime Sector

4th September 2024

Logistics BusinessOvercoming Uncertainties in the Maritime Sector

The marine industry is vital to the UK’s economy, contributing £116bn in total turnover in 2019. However, recent events such as Brexit and the conflict in Ukraine, along with rising environmental concerns, predominant skills shortage, and industry changes, have led to disruption in trade flows and a significant contraction in the last few years.

According to QBE’s new report, the marine industry experienced a decline of 8.5% in 2024, the most severe since 2016, excluding the 2020 Covid-19 pandemic.

Danny Peachey, Manager, Great Yarmouth at HTL Group commented: “Despite the recent challenges faced by the maritime industry, the report indicates a promising outlook with the decline reducing to 0.4% in 2024 and a projected marginal growth of 0.8% in 2025. To achieve this, it’s important to embrace the changes the sector demands, a natural consequence of its evolution. Addressing the STEM skills shortage and attracting young talent, as well as changing perceptions around technology and digitisation, will ensure not only the return to normal growth but also the flourishing of the industry.”

An ageing maritime workforce

In order to enter the maritime industry, a certain set of skills is required, especially in more demanding fields where marine engineering and technological knowledge are key. Currently, the mean age of a maritime professional is 44.8 years, according to the Maritime Skills Commission 2023 report. Moreover, people aged under 30 comprise only 14% of the workforce, while those over the age of 50 account for nearly 40%.

The disproportion indicates an upcoming gap in the workforce due to retirement and lack of available manpower, highlighting the urgency of cultivating a new generation of talent. Putting succession plans in place with a focus on transferring knowledge and skills is crucial for maintaining the industry workforce.

In the maritime industry, it’s common to attain new skills through onsite traineeships with an experienced worker. However, the lack of sufficient workforce often means that experts in the field lack the time to mentor juniors and cadets on the job.

Furthermore, limited skill development opportunities are also haltering the advancement of the maritime workforce. Seafarers are generally required to obtain several job-related certificates in addition to their main CoC (Certificate of Competence). Nevertheless, there is a lack of institutional support due to cost-cutting measures, which place upskilling in the hands and resources of marine workers themselves, posing yet another deterrent for young people wanting to enter the workforce.

Attracting young talent

The issue of attracting new talent to the maritime sector starts with certain perceptions and lack of visibility of the sector. Low diversity, poor conditions in certain occupations, and the lack of career progression are slowing the talent pipeline.

Even those who live near coastal areas choose to pursue other careers. A recent poll by Maritime UK revealed that nearly half of the 18-24-years old respondents living close to the coast were planning to move away due to lack of jobs cited as the main reason. However, 70% of those claimed that the right career opportunities would motivate them to stay.

These figures highlight the importance of creating educational opportunities in the sector tailored to young people. By engaging students early and providing hands-on experiences, the industry can spark interest and enthusiasm for marine careers. Additionally, fostering a culture of innovation and inclusivity can make the sector more appealing to the younger generation.

Environmental concerns and the rise of green skills

As the sector evolves and tries to adapt to the current economic, fleet, and environmental changes, new technologies are entering maritime processes and operations. While expertise in traditional areas such as engineering and logistics remains crucial, new skills in the areas of IT, digitisation, and mechanical systems are required. This increases the demand for highly skilled talent entering the maritime sector and educational systems that prepare new employees early on.

While such changes might involve additional training and a longer path to entering a maritime career, the financial rewards and prestige of these careers could attract highly intelligent and motivated talent, provided the job opportunities are advertised appropriately.

Not only that but the sector has demonstrated a commitment to sustainability with a recent £33 million government funding for developing green technologies for ports and ships. The investment aims to cut shipping emissions, support jobs in coastal areas, and enhance local economies. This has created the demand for expertise in green skills in the fields of renewable energy, clean technologies, and alternative fuels. According to the Maritime Skills Commission, demand for green jobs in the maritime sector is expected to increase by 400% by 2030, creating 1.7million additional jobs for talented people to enter the workforce and develop rewarding, purpose-driven careers.

Technological resistance in the maritime sector

While technology is certainly set to revolutionise the maritime sector, certain public debates arise regarding employment amidst the context of the fourth industrial revolution. Implementing new technologies means that some jobs are created while others are lost. Employees fear that robotics might replace certain jobs or that they will fall behind on upskilling, especially given recent experiences with the sector’s reluctance to finance additional training, as stated previously.

Danny Peachey from HTL Group added: “History has shown us that embracing new technology can significantly optimise operations and enhance employee efficiency. Before being able to rent hydraulic torque equipment, moving cargo and managing complex internal processes demanded extensive labour from numerous workers.

“Hydraulic technology has transformed maritime operations by enabling employees to perform tasks with greater ease and requiring less manpower. It has revolutionised how we conduct maritime operations, making it inconceivable to operate without it. New technologies have the potential to introduce similar advancements, streamline workflows, and create new job opportunities.”

The UK maritime industry holds immense potential for rapid growth if it deals with the skills gap and talent shortage head-on. By enhancing the sector’s visibility, implementing educational and mentorship programs, and embracing new technology while addressing employees’ concerns, the industry can cultivate a new generation of talented marine workers.

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