Laying Up the Ships (Crewing Challenge, Part 2)

To obtain a merchant marine officer’s license in the previous century, one could choose to attend an academy or apprenticeship, or simply accrue enough time at sea to take the tests. Around 2002, all new deck officers were required to attend classroom instruction before obtaining their licenses. While it was more difficult to upgrade without a college education or registered apprenticeship, there was little impact in workforce numbers, as the maritime academies were churning out new mates. Between 2014 and 2017, new training requirements brought the minimum required course of study to that of a two-year degree. For the first time, these requirements also applied to engineering officers. The Military Sealift Command increased hiring of officers, to allow its workforce more time off the ship to focus on their continuing education. It was also predicted that many of the retirement-eligible officers would retire, instead of return to the classroom for three weeks of training (on the engineering side). This lesser requirement applied to anyone who began their maritime career before 2014. A downturn in the offshore oil industry meant fewer mariners were leaving government employment. Two of the crew-heavy warships inherited from the uniformed Navy were retired (USS Ponce and USNS Rainier). In some cases, twice as many officers as the Military Sealift Command intended to keep on the books. Work-Life Balance was good, and the horror stories of the past didn’t dissuade young achievers from staying. In 2017, they offered early retirements, drafted layoff letters, and stopped bringing new officers onto the payroll. A certain number of ships in the homeports of Norfolk, San Diego, and Guam were known as homesteading vessels, where the majority of personnel maintained as close to a 9-to-5 schedule as one can maintain in the industry. If the ship was in port, which it was most weekends, they would go home at night. Then came the COVID-19 pandemic. In a faulty version of the telephone game, the Admiral at the time believed that a total lockdown to the ship, or “gangway up” was in order. The mariners, as he understood, worked a 4-month tour, then rotated into a monthlong vacation. They didn’t need to go home at night, for the time being. Although the ballistic missile submarines were an exception, stateside uniformed military personnel were not locked onto the ships at night; the military spouses would not accept such a proposal. The tours were rarely 4 months, more likely 6 months and growing as the most skilled mariners found other employment (I was working in the office at this point). While conditions slowly became more palatable, the threat of lockdown permeated for two full years. Where the Military Sealift Command had been able to coax new officers of the Class of 2018 and 2019 to accept a lower rate of pay; bonuses in the amounts of $36,000 were needed for the Class of 2022. Promotions for officers’ positions were open continuously, so that anyone who had the ability to promote, did so. Maritime academy enrollment has not been as robust as it had been in the 2010s. Due to the use of federal training ships, a drug-free policy is imposed, which is at odds with the culture of the states where the academies are located, such as California, Maine, New York, and Massachusetts. More young people are opting out of college, as well as careers overall, in favor of self-directed work-life balance. Fear of falling behind economically isn’t such a concern with Gen Z. Which brings up the new Admiral’s Force Generation Reset. By crewing fewer ships, the ships that remain will have larger crew sizes; this opportunity was forsook in 2017. This will allow for mariners to attend training and take their earned vacation, and build a work life balance. PS: I know this post is a couple days late, but I have managed to be maximally busy at training for my day job, and in overseeing renovations at my rental condo. Over the hump for this week, though.

Take Your High-Paying Job and Shove It? (Crewing Challenge, Part 1)

Recently in maritime news, there has been discussion about the Military Sealift Command laying up 17 ships, or about 25% of the ships that are crewed by civil service mariners. For many of the job positions available, the Military Sealift Command offers the highest cumulative wages in the industry. However, it comes with a significant cost in personal time. Whereby officers in other shipping firms work a total of 6 calendar months per year, Military Sealift Command has required a minimum of 8 months. This situation is partially rectified by a newly-introduced part time schedule at 6 months per year, though with reduced healthcare and retirement benefits. While maximizing a paycheck used to be the priority for many Americans, whether to provide a better life for the grandkids or to keep up with the Joneses, it is no longer the case with Gen Z. Obviously, if this was the case, Military Sealift Command wouldn’t be competing with shoreside firms for recent college graduates. These folks are putting their money where their mouth is, as far as Work Life Balance is concerned. To achieve financial stability that allows this balance, one can earn more, or cut expenses. Scott Trench, founder of the Bigger Money Podcast, notes that housing, transportation, and food make up the largest three expenditures for most households. Housing: Younger people in general have stopped trying to pay the rent on one income. Definitely a change from a decade ago, when it was the thing to sign a lease on a shoebox apartment in some hip part of the city. Living with roommates, in the parents’ oversized house, or with an equal-earning partner cut one’s housing costs in half, or even less. Transportation: A new pickup truck or SUV is no longer within the middle-class budget. Sure, you can get an 8-year car loan at $1000 per month. But anyone with an iota of sense would buy a lightly used vehicle, or a more modest new car. Going beyond the “daily driver” car, we might wonder if we have manufactured enough durable goods- or “expensive toys” - to last the next decade or two. Lightly-used Recreational Vehicles, All Terrain Vehicles, and Boats are available on the market for enthusiasts to buy at often-steep discounts. Food: The Golden age of American restaurants- and nightlife in general- is over. The New York Times wrote that hospitality has become inhospitable, from the view of customers upset about trite service and high prices, employees about demanding customers and low wages, and owners about rising costs and lack of labor. The trend is shaping out to be a small number of high-priced, high-quality restaurants, and a larger number of food hall (cafeteria?) establishments with reduced staff; with more entertainment and communal dining taking place at home. Barbeque, anyone? Earn More: The Dual Income Couple can be empowerment, rather than a trap. With parents now having their first child closer to age 32 than 22, there is a good chance that both mom and dad are established in their careers, and logically, it would be a large leap to give up the safety net of two income streams. Coming out of the Pandemic, there was a significant mismatch between work-from-home jobs and people who would benefit from them; and the fact that even among white-collar workers, WFH jobs paid more than in-person roles. With the economy being an efficient machine, we are seeing the emergency of a work-from-home, flexible hours track that allows the primary caregiver to spend time with the kids. Overall, more intelligent financial planning means less need for overtime shifts and long stints at sea. Many of us experienced mariners know the prodigal type that gives away their paychecks to man toys, girlfriends and nightclubs. Some of us are fortunate to know a forever-single mariner with a net worth nearing $5 million: keep savings high and expenses low. Moderation is finding the balance between these two extremes, something we may have forgotten in the not-too-far past.