Busan Update

 I’ve taken a new assignment as a First Assistant Engineer onboard a supply ship working in the Far East. Coincidently, my brother just finished several weeks of vessel inspections in Korea, and we met for dinner in Busan. 

This Korean city has long been connected to maritime trade. Military cargo for peacekeeping efforts began in the 1950s, but now, the commercial seaport and nearby shipyards stand out for their volume of work. 

Busan Train Station, and so-called Texas Street, served as the cultural nexus and service providers for international ferry travelers and global mariners. Due to COVID-19 restrictions, passenger traffic has declined. Most mariners are still confined to their ships, even as general international tourism has recently reopened in Korea. But, this has not proved fatal to the majority of Texas Street businesses- the ethnic restaurants, live music venues, and currency exchange parlors. In this older part of Busan, there is little pressure for landlords search for new tenants. Texas Street remains well positioned for the next generation of mariners on shore business and liberty.

Paper Record

 About a year ago, I decried the fully-digital office. Well, necessity is the mother of invention. As I enter the second decade of my career, carrying paper copies of every certificate and record has become a physical burden. I used to keep everything in a binder, roughly separated by category: Navy Reserve, maritime licensing papers, employer-specific files.  

That binder became two binders, and categorization between topics was lost in the shuffle. So, I finally took the time to start removing the certificates that were simply irrelevant to my career: the expired papers, a pool operator's certificate, ABC Alcohol Server training. 

What remained were licenses that hang on the walls of a learned professional's office: the Professional Engineer and Merchant Mariner's Licenses; sea service letters documenting the various ships I've worked aboard; certificates I will need to present to the ship's purser; annual Navy Reserve evaluations; copies of title to my home, my car, and gold coins. This winnowing of paperwork was healthy in the way that it increased my focus on what was important for the present and the future. I could let go of the trivial, and focus on key strengths and abilities.

A Century of the Park and Ride.

 

The concept began in early upper middle class suburbs, likely the 1920s in places like F Scott Fitzgerald’s Great Neck, NY, some 20 miles from Manhattan. Urban-working Professionals would “motor” to the train station and commute to downtown on the railroad.

In World War Two, fuel rationing combined with the construction of military facilities and factories on the fringe of cities, such as Farmingdale NY, required the use of carpooling by war workers.

Even in the automobile friendly 1950s, city planners recognized that freeways and road widening could not solve the urban traffic problem - even the infamous General Motors admitted so in their half hour documentary “Let’s Go to Town”. Fringe parking outside of downtown were put into service, saving motorists downtown parking fees and the aggravation of stop and go driving.

 Later, approaching and during the 1970s fuel crises, these park and rides were placed closer to residential areas, and dedicated bus lanes, such as those between DC and Alexandria VA, and on NYC’s Lincoln Tunnel Approach, were put into service.

A decline in carpooling came with the rise in dual-income households: husbands now took responsibility for a “honey do list”, domestic responsibilities such as grocery shopping and dry-cleaning pickup on the way home from work. This often required bringing one owns car to the office, instead of sharing the ride with a co-worker.

Revitalization and construction of new downtown sports stadiums in the 1990s required proactive traffic management. The lots and light rails that served office commuters by day could serve tourists in the evening.

Greyhound, the intercity bus company, realized that most riders had at least occasional access to a car for local trips. Bus stations moved out of downtowns to highway-adjacent park and rides. In states that have taken an interest in preserving regional bus access such as Colorado and Virginia, park and rides serve as the gateway to other regions of their respective states.

In addition to its service in preserving the walkability of downtown areas, the park-and-ride has also impacted the human experience at seaports, piers, and shipyards. In the United States, Boston Ship Repair in Boston, MA; and Deyten's in North Charleston, SC, deserve applause for avoiding the trend of turning port areas into vast asphalt parking lots. At these shipyards, mariners and shipfitters can easily walk to lunch outside the company gates. Reducing the need for a personal automobile increases quality of life. Long live the park and ride!

The Great Shakedown

 Workers in the maritime industry were greatly affected by COVID-19, from restricted port visits to delayed crew changes and cruise-ship levels of virus transmission. As wages and pensions were generous compared to other industries, retirement and career realignment were viable options for a large part of the American seafaring workforce. What does the employment field look like today?

 

Deck Officers

Compared to the number of jobs available at the time, there was an oversupply of deck officers in Western countries this past decade. The issue was more acute at the third mate level, who are typically recent graduates. While maritime academies graduate fewer mates than engineers, deck officers have higher retention in the afloat maritime industry than engineers. The wave of COVID-era retirements unstuck the promotion pipeline in the deck department, and allows newer officers to take positions at their highest qualification.

 

Engineering Officers

In 2014, international regulatory changes came into effect, requiring newly-minted ship’s officers to hold at least a community college level of education. The maritime industry had an unusually linear path for promotion, from entry level to department head. Now, the employment pool of ship’s officers has been detached from the skilled labor pool, which used to send its members into the officer ranks with regularity.

On the demand side, more maritime-trained engineers are working ashore are than staying aboard ship. Industrial and facilities engineering disciplines had become neglected areas of concentration at most flagship universities. These hands-on programs were generally forgotten as engineering programs became more scientifically-oriented towards high-tech research and development. Someone needs to fill these jobs, and the career-oriented nature of maritime academies became the first stop for power plant, sophisticated equipment technician, and prototype employers.

 

Skilled Level

The most perplexing labor shortage at sea is the mid-level positions, the able seamen and enginemen. Perhaps the average age for this cohort had increased to 55; younger people were doing short stints at the entry level, or going for a college degree and an officer’s berth. The top unions for these workers did not suffer a pension collapse, as the American Maritime Officers’ union did in 2009, so these mid-levels were able to retire on schedule.  

The Navy and Coast Guard had been steady suppliers of skilled mariners, but shipping companies must compete with other veteran-friendly employers such as defense contractors and large-capital corporations.

It seems that these positions would be great targets for re-skilling workers displaced by deindustrialization. Someone has to pay for the training, though, whether it is state employment agencies, the GI Bill, employers, or largely out-of-pocket. Entry-level personnel will not commit to the expense until they are sure that the maritime field is right for them.

Employers expected recent maritime academy graduates to backfill these positions. During lean times, as recently as 2020, graduates of limited economic means went “before the mast” to begin earning family-sized paychecks, instead of waiting for an officer’s assignment. But when officer positions are readily available, it takes a lot of gaslighting (“you’re not ready…”, etc.) to get new graduates to take unlicensed positions- not an efficient or ethical strategy.     

 

Entry Level

Traditionally, the gatekeepers of entry-level, deep-sea maritime positions, such as union training schools and federal government agencies with ships, could offer entry-level positions to those with previous work experience. These prospective mariners would be expected to bring something to the table, professionally. Preferably, they had work experience on inland and fishing boats. If not, they could be a great cook, or have nighttime watch standing experience from the Army. But at this moment, the gatekeepers are recruiting at high school job fairs. Salaried employment, or fixed contracts, in the maritime industry, certainly beats the variable pay and unpredictable schedules of other employers, such as foodservice. The potential for upward mobility at sea is unparallel as well.

Mariners Don't Work from Home

 

I am employed in the civil service, with two days of work-from-home per week. This is unusual in the maritime industry overall, where our contractors can be found at their offices, or in the field, any working day of the week.

The maritime industry; like investment banking, medicine, and top law; is not just a job, but a lifestyle. Due to the intense hours and high skills necessary, these occupations traditionally pay a single-breadwinner wage that supports a professional lifestyle. It is implied that there is someone at home, either a spouse or an au-pair, who takes care of the little things at home, to set up the high-earning professional for success. In the return-to-office debate, it was often revealed by anecdote that the “back to work” types had a system for domestic support. In the maritime industry, this is not just weekday help on the homefront, but one that can go for weeks or months, in the case of deep-sea voyages.

In contrast to acute events such as hurricanes and terrorist attacks, the cyclical nature of COVID-19 has blurred the distinction between a contingency mode of work (OK for employees to use work time to take care of life necessities, including childcare) to standard operations (Employer gets full attention during the work day). Switching to a lower tempo is somewhat disadvantageous in a high-performance industry, where the workforce is acculturated to giving all to their profession.

One of the more significant issues surrounding work-from-home is the security of clients’ information, whether it is the proprietary trade information of a private business, or classified information for military vessels. For the private sector, profit comes from incremental improvement and advantage in an otherwise commoditized market. We wouldn’t take annual training on countermeasures if espionage didn’t happen.

Shoresiders are seen as sissies, already. At sea, a lot happens between 5pm on Friday and 8am on Monday. The shoreside 5-day-per-week work schedule contrasts to the 7-day-a-week lifestyle of a sailing mariner. Depending on the time zone difference between the ship and the office, it could be a 72-hour delay in communication because of the weekend. Already, ship’s officers have epithets for shore-side office people over this perceived lack of support; the relationship would be more strained in a permanent work-from-home environment, where impromptu meetings are more difficult to arrange. Ships are tangible items. During COVID-19 lockdowns, crewmembers had their workload increase when shore-siders were unable to visit ships in-person. Photographs and summary reports now had to be undertaken by the crew in order to support shore-siders’ work-from-home plans.

In the work-from-home model, new maritime employees recruited from non-traditional sources (such as polytechnic colleges and shoreside industry) will lose the opportunity to develop social skills relevant to the maritime industry- the unwritten rules of work. Granted, some of these old-fashioned norms needed to disappear, as witnessed by the #womenbelongatsea movement.

Could it Work? Profit Share on Vessels

Two hundred years ago, it was common for mariners to be paid not in salary, but in share of revenue from the ship’s voyage. Depending on the trade, a captain might collect a long draw of 1/8^th, and an ordinary seaman perhaps 1/200^th of the ship’s earnings on a voyage.

Looking back to the 1920’s, this practice had become obsolete for the most part. In the whaling trade, this practice continued. Many vessels used in the whaling trade were purchased secondhand. Most trade routes had shifted from sail to steam between 1890 and 1910, leaving many sailing vessels available for reuse in longer-haul trades. Thus, the cost of labor was significant compared to the cost of capital equipment, such as the vessel, sails, and whaling gear. The mariners were an integral part of the value chain, as they sailed the ship and refined whale oil onboard, during their long voyage. In contrast to the cargo trade, where sailing routes were fixed, and cargos assigned by agents ashore; the nature of whaling incentivized captains to engage in the profit-seeking motive of finding the whales, even if it took them far from homeport.

It is still common in the fishing industry to practice profit-sharing, whether it is the San Diego fishing fleet or the Alaskan trade. A small crew works long hours to produce seafood.  

Today, crew costs for a large cargo vessel represents perhaps just 10 percent of vessel operating costs. On foreign vessels, labor accounts for perhaps $1 million for $10 million in costs, not including mortgage payments on the vessel.  Yet labor cost is the realm in which international shipowners try to pare down costs. Fuel costs, on the other hand, can represent 50% of a vessel’s operating expense, and is highly variable. It therefore is impractical to assign the profitability “risk” to crewmembers, when other factors affecting vessel profitability are much more variable than a fixed salary.  

How else can mariners profit from voyages beyond their salary? In sailing ship days, ship’s masters often owned their own vessels; and this owner-operator culture still exists on rivers and bays. Many deep-sea ships are incorporated as their own Limited Liability Company under a shipping firm’s umbrella. Bondholders and bank lenders on ship’s equipment will prefer a fixed return, but preferred shares of stocks in a particular vessel, with dividends paid on voyage earnings, could offer a more entrepreneurial investment for knowledgeable mariners. Currently, this format is not practiced for large ships, although inland boats may be paid for through this “crowdfunded” method.  

Going Rogue? Unlikely

 Someone posed the question online, as to the likelihood of a Navy ship’s captain going rogue. I speculated that it is an unlikely scenario, for the following reasons:

My experience is onboard civilian-operated supply ships for the US Navy. The Captain and other department heads have spent years fully indoctrinated in the Navy way of thinking. From the moment they are hired as Third Officers, they are given extensive training on various tactical and leadership topics. (In contrast, many engineering officers pay for 100% of their own training). Small amounts of responsibility, such as handling small arms or being the Flight Deck Officer, are given early, but can be revoked. That would be a red flag. The Admiral must personally approve promotions of civilian Captains. The more unconventional officers (pacificists, conspiracy theorists) are not placed on critical ships, such as the ammo carriers. And yes, Special Forces practice on how to get from the helicopter deck to the ship’s bridge.

On a combatant ship, as OP notes, all of these precautions, and more, would be utilized very rigorously in the selection of COs and XOs.

Has it happened in recent times? Yes. The privately-managed SS Columbia Eagle was taken over by entry-level crewmembers in a 1970 munity, as protest against the war in Vietnam. As far as government vessels go, the aforementioned measures are an insurance policy against barratry (by a ship's captain) and mutiny (by the crew).