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MARITIME
EMPLOYMENT REVIEW
COMMERCIAL SHIPPING
OCTOBER 2010
www.faststream.com
“ALTHOUGH WE FACE MANY UNKNOWNS AS WE
MOVE INTO 2011, THE ONE CERTAINTY IS THAT GOOD
CANDIDATES ARE STILL NOT WALKING THE STREETS”
Mark Charman.
CEO - Faststream Recruitment Group
Ship operators, brokers, freight traders go to, so confident are they of finding lucrative
and chartering managers working in the employment quickly and easily. This is not the
commercial shipping markets have entered case in Europe or the USA, but even here, the
the autumn of 2010 with a greater sense caginess of the past 18 months is disappearing
of optimism than perhaps at any time this and candidates are much more receptive to
year. the idea of furthering their career by moving
company. Indeed over half of shipbrokers
Maybe the market feels that after the fear of and chartering managers responding to a
2008 and much of 2009, they have “gotten Faststream survey this October reported that
away with it this time”? We may not be quite they had been approached about a new job
out of the woods yet, but the dire predictions three or more times in the past year.
of market meltdown and company collapses
have not come to pass. Unfortunately, however, some companies do
not seem to have realised that the employment
We have seen this optimism reflected in the market is not as fragile as they may think and
surge in job vacancies since September and in that people are not always desperate for the
a renewed sense of confidence amongst many job on offer. This means that they are losing
of our candidates. We know of candidates in out on good candidates because they are
Singapore resigning jobs without a new one to failing to engage with them. Whether it is the
www.faststream.com
“As long as there are no market shocks,
the post Christmas and post bonus
period should be a busy one”
low ball initial salary offer, the weeks of radio silence between an interview and a job offer or
simply the way in which the candidate is made to feel through the interview process, all too often
companies are behaving as if the candidates should be grateful they are in with chance of securing
employment with them. In fact it is the talented individuals with strong commercial shipping skills
who are very much in demand.
2010 has seen Singapore go from strength to strength and consolidating its position as a leading
shipping centre. Singapore has fast become a work location of choice for Europeans, Americans
and Asians and not something to be endured. This is reflected in a survey we conducted amongst
shipbroking and chartering manager contacts which found that Singapore was the most favoured
location in the world to which to move, slightly ahead of London and Geneva, but way ahead of its
closest regional rival Hong Kong.
The shipping markets continue to offer good opportunities for talented individuals and we believe
that as long as there are no market shocks, the post Christmas and post bonus period should be a
busy one for freight traders, shipbrokers and chartering managers looking for fresh challenges
Q: Would you consider moving to any of the following
locations if the right job opportunity came along?
Mumbai 9
Wouldn’t move 13
Athens 21
% of candidates
Shanghai 28
Oslo 30
Hong Kong 35
Monaco 41
Dubai 45
New York 45
Geneva 50
London 52
Singapore 60
0 20 40 60 80
ASIA-PACIFIC
“In the same way that many Westerners perceive
Singapore as “Asia for beginners”, so many Asian
companies perceive the Lion City as a stepping
stone to the rest of the world.”
www.faststream.com
The commercial shipping job market in Singapore is hot. In the past two years, we have
seen Singapore develop from what was mainly a tanker chartering centre to one which
covers dry bulk as well as niche trades such as LNG, offshore and heavy lift trades.
Mining giants like Rio Tinto run their global two way traffic process between Europe, the
capesize chartering activities out of Singapore USA and Asia. Not only are we seeing Indian
and trading houses including Trafigura and companies expanding in Singapore, but also a
Noble have been increasing their Singapore number of small and medium sized south east
based dry activity. Heavy lift company Asian family concerns attracted by tax breaks
Dockwise recently opened up an office in starting up shipping companies.
Singapore and shipbrokers are also setting up
more LNG desks. Last year’s move of many its desks by the
shipbrokers Clarksons to Singapore from
Singapore is becoming an increasingly Hong Kong was regarded as an important
important hub for Asian companies looking to one by many market watchers, but we are
expand out of Asia. In the same way that many also witnessing some partnerships and joint
Westerners perceive Singapore as “Asia for venture arrangements between Singaporean
beginners”, so many Asian companies perceive and western shipbroking firms breaking up
the Lion City as a stepping stone to the rest and a number of European shipbroking firms
of the world. Faststream is helping a range opening their own offices in Singapore.
of clients set up their offices here and begin a
www.faststream.com
All this activity is translating into more and more jobs. Our own offices in Singapore have increased
in size with our team now 18 strong to handle the ever increasing demand. Indeed, we are finding
that more and more Europeans and Americans presenting themselves to us as Singaporeans and
looking to stay for the long term in the region.
Salary levels for commercial roles in Singapore vary greatly and are in a state of general flux.
Some candidates are being offered very generous ex-pat packages including schooling, flights
and housing. Others are being offered much less. Our data shows that a mid-level operations
manager or assistant chartering manager can be placed quickly and for approximately GBP59,900,
however these salaries vary greatly. In the commercial revenue generating sector, companies are
competing internationally against London and New York for talent and will pay accordingly for the
right candidates
Mid-level in-house roles: Singapore
(Average salaries)
JUNIOR MID SNR / MANAGER
Operator S$ 84,500 S$ 117,125 S$ 156,250
(GBP £41,050) (GBP £59,900) (GBP £75,900)
Charterer S$104,000 S$149,500 S$234,560
(GBP £50,540) (GBP £72,650) (GBP £113,980)
Mid-level in-house roles: Europe
(Average salaries)
JUNIOR MID SNR / MANAGER
Operator GBP £24,000 GBP £49,500 GBP £70,125
(S$ 49,400) (S$ 101,860) (S$ 144,280)
Charterer GBP £38,740 GBP £59,120 GBP £100,750
(S$ 79,700) (S$ 121,610) (S$ 207,245)
EUROPE
“An important driver of employment in the European
shipping markets in recent months has been the
strong demand for ship operators by the London
and Geneva based trading houses. ”
www.faststream.com
Despite all the focus on and excitement about Asia, London still remains the world’s
leading chartering centre.
Confidence amongst the London chartering A number have grown their freight operations
community to the cluster’s future is high, quite substantially in the past 24 months and
according to those who work here. Whilst need experienced vessel operators. Geneva
about half of all the respondents to a Faststream based trading firms are paying particularly
survey felt that London would continue to be well for vessel operators, with £80K packages
the leading chartering centre over the next available for the right people.
decade, London based respondents were
even more positive about London’s future with Working as an operator in a trading
69% believing that it would continue to be the environment is often more pressurised than
world’s leading chartering centre. Indeed, working for a shipping company, with trading
77% of Londoners considered the growth of companies wanting people who understand
Asian shipbroking centres to be an opportunity the interaction between the physical and
rather than a threat to their jobs. derivatives markets as well as the ability to
interact with and, when necessary, stand up
to traders.
Q: Will London continue to be the
world’s leading chartering centre
in the next 10 years and sustain the In London by comparison, operators working
number of shipbroking positions it with trading houses can expect to earn £60K-
currently does? 70K whilst the range of salaries offered by
shipping companies varies greatly, from
Yes: 46% between £30K – 60K.
No: 38%
Don’t knows: 11% Most of the demand for chartering managers
has been on the tanker side of the business,
with a number of London vacancies recently
An important driver of employment in the opening up due to relocation of individuals.
European shipping markets in recent months
has been the strong demand for ship operators
by the London and Geneva based trading
houses.
www.faststream.com
London’s important maritime legal sector and often providing a real time service via their
continues to flourish with city law firms networks of local offices around the world.
specialising in the shipping sector performing However, the many niche law firms dotted in
well when compared to their peers in the maritime centres across the UK and Europe,
banking and other financial sectors. With much do rely on the presence of local business, be it
of the less sophisticated wet work already offshore, short sea or port related.
handled in local shipping centres such as
Athens or by in-house P&I lawyers, London’s From a recruitment point of view, the maritime
maritime lawyers are mainly focused on the legal sector does not see the same level of
transactional side of shipping. chopping and changing of lawyers from one
firm to another firm as its counterparts in
The outsourcing of simpler legal services to the corporate sector do. However, there is
cheaper locations like India and Singapore, as strong demand for mid-level lawyers bringing
is currently being done by many of the large a strong contact book. Our US office reports a
corporate law firms, is not being undertaken fair amount of movement across the in-house
by the niche maritime law firms as their work legal sector with a relatively high number of
today is so specialist. Indeed, when it comes admiralty lawyers reaching retirement age and
to large equity buyouts of shipping companies, mid-level lawyers stepping up to fill the roles.
the corporate law firms are turning to the We see a strong demand for young lawyers
maritime specialists for assistance. with three to five years of experience with
salaries ranging from $90K-125K
Many maritime lawyers say that this recession
feels different to the last shipping downturn.
A number of lawyers are reporting that their
shipping clients, rather than cut down on their
use of external legal resources, are actually
making greater use of their services than
ever before to guide them through complex
refinancing, corporate and tax issues.
The gradual movement of a number of
shipowning operations away from London
does not seem to have affected the big maritime
legal firms, with most taking their instructions
from people and companies outside the UK
AMERICAS
“Demographical trends are working against
companies who are finding that there is a huge
void of 40-50 year olds who will be the senior
people of tomorrow.”
www.faststream.com
The announcement of the ending of the drilling moratorium in the US Gulf will
undoubtedly give the offshore sector the boost it needs. However, the US shipping
sector generally is not performing well, with the continuing difficulties of US flagged
vessels impacting on a range of service providers.
The shipbroking market for example has The US has a large base of manufacturers
seen no real company growth in 24 months. and commercial service providers who need
Whilst there has been some inter-company marketing and sales people. We are currently
movement by people bringing a book of seeing more demand for these sorts of people
business, generally speaking shipbroking teams than at any time in the past three years. Of
are not growing. Indeed many US shipbrokers particular interest are technical sales people
are being cut out of many US flag deals as a with a knowledge of the product. There are
number of owners and charterers are dealing generally not enough qualified US citizens
directly with each other. available for these roles, so companies are
being forced to look further afield. Despite
We do see a slow and steady market for US the strong demand, companies are being
based chartering managers. Demographical very picky about who they hire and are not
trends are working against companies who typically looking for generalists with good sales
are finding that there is a huge void of 40- skills, but little after-service experience. These
50 year olds who will be the senior people companies are after experts
of tomorrow. A number of clients are asking
Faststream to provide market mapping services
for them as they look to 2012 and beyond.
EXECUTIVES
“Caution has been the watch word over the last
two years for shipping executives, but we are
starting to see a clear change in attitude .”
Executive and senior management level candidates, including chief executives,
managing directors and other board level appointments, over the last two quarters
have represented a slow but significant upward trend in activity. Allowing for extended
hiring time frames, with some senior assignments taking between six and nine months
to complete, we have seen positive growth in enquiries from organisations wanting to
plan strategically for the future and requiring senior talent to do so.
Caution has been the watch word over the last two years for shipping executives,
but we are starting to see a clear change in attitude from individuals who are now
looking to drive their career onwards and upwards. Leadership candidates have been
increasingly making enquiries about competitive market opportunities.
As a region Asia still sits in top spot for executive placements, but the UAE and its
tax-free welcome is also reappearing as a destination of choice, particularly for Europe
based executives.
CONCLUSION
Although we’re seeing many positive movements in the industry generally, it is likely
that 2010 will close without a clear understanding of shipping’s immediate prospects.
There are still difficulties facing the world’s financial markets and this will continue to
have an effect on key shipping hubs around the world. In the UK we are also yet to see
the full impact of the government’s policy to cap working visas.
Although we face many unknowns as we move into 2011, the one certainty is that
good candidates are not walking the streets. The demand for commercial shipping
talent remains high and will continue to rise for the foreseeable future. Singapore,
in particular, appears to be leading the revival and companies are having to review
their recruitment techniques and employment packages to secure the best talent. The
movement of people between companies, industries and global locations will continue
to have a significant impact on the success of the industry as we begin to emerge from
these difficult times.
FIGURES
www.faststream.com
Candidates by region
Europe 49%
Asia 28%
Americas 21%
Australasia 1%
Africa 1%
Placements by region
Europe 35%
Asia 31%
Americas 27%
Middle East 7%
www.faststream.com
AVERAGE GLOBAL FIGURES
In-house commercial shipping roles
(shipowners, trading houses, energy companies)
Junior Mid Senior
Average age 35 35 46
Sex (m/f ratio) 1:1 4:3 28:1
Healthcare only package (%) 33 52
Healthcare & pension (%) 50 0 0
Full package and benefits (%) 0 33 100
No package (%) 17 9 0
Bonus (% receiving) 0 90 100
Average basic salary (GBP) 32,065 45,228 101,394
As % of candidates placed 11 37 52
Region of placement: Europe (%) 66 33 14
Region of placement: Asia (%) 34 43 25
Region of placement: Americas (%) 0 19 46
Region of placement: Middle East (%) 0 0 14
Candidate nationality: European (%) 66 38 48
Candidate nationality: Asian (%) 34 38 22
Candidate nationality: USA (%) 0 19 26
Candidate nationality: Other (%) 0 4 4
www.faststream.com
AVERAGE GLOBAL FIGURES
3rd party commercial shipping roles
(shipbrokers, technology, services)
Junior Mid Senior
Average age 29 33 36
Sex (m/f ratio) 1:7 5:1 5:1
Healthcare only package (%) 75 33 0
Healthcare & pension (%) 0 0 0
Full package and benefits (%) 12 16 0
No package (%) 12 50 34
Bonus (% receiving) 75 66 66
Average basic salary (GBP) 26,973 51,442 71,020
As % of candidates placed 40 30 30
Region of placement: Europe (%) 55 50 66
Region of placement: Asia (%) 22 50 0
Region of placement: Americas (%) 11 0 34
Region of placement: Middle East (%) 0 0 0
Candidate nationality: European (%) 44 66 66
Candidate nationality: Asian (%) 22 33 0
Candidate nationality: USA (%) 0 19 26
Candidate nationality: Other (%) 11 0 0
www.faststream.com
SURVEY
RESULTS
Faststream surveyed shipbrokers, chartering managers and freight traders based in Europe and
Asia by email between 6th - 12th October 2010.
Average age of respondent: 37
Respondent location
Europe 58%
Asia 33%
Middle East 2%
Americas 6%
Other 1%
Q: Will London continue to be the world’s leading chartering centre in the next 10 years
and sustain the number of shipbroking positions it currently does?
Yes: 46%
No: 38%
Don’t know: 11%
However, London based respondents were more positive about London’s future with 69%
believing that it would continue to be the world’s leading chartering centre. 77% considered
the growith of Asian shipbroking centres to be an opportunity rather than a threat to their
jobs.
www.faststream.com
Q: Would you consider moving to any of the following locations if the right job
opportunity came along?
Mumbai 9
Wouldn’t move 13
Athens 21
Shanghai 28
% of candidates
Oslo 30
Hong Kong 35
Monaco 41
Dubai 45
New York 45
Geneva 50
London 52
Singapore 60
0 20 40 60 80
Q: How many times have you been approached in the past 12 months about
a new job opportunity?
6+ times 15
15
5 times 7 7
% of candidates
4 times 9 9
3 times 23
23
2 times 23
23
1 time 13 13
Not at all 8 8
0 5 10 15 20 25
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