One of the shipping industry's largest challenges is currently being grappled with.

• The global shipping industry is facing a shortage of seafarers, resulting in a concerning combination of fake resumes, maritime accidents, and increased freight costs.
• A captain in a global shipping company stated that there is a significant shortage of crew members, which is affecting him and making it difficult for him to find suitable candidates. He requested that CNBC not reveal his identity.

The global shortage of seafarers is causing problems in the shipping industry, including fake resumes, accidents at sea, and higher freight rates.

Despite the exponential increase in the number of vessels in recent years, the manpower growth required for those ships has not kept up, according to Rhett Harris, senior manning analyst at Drewry.

According to Harris, companies often have to hire seafarers with less experience than they prefer due to a shortage of higher-ranking individuals, especially engineers.

The Red Sea attacks by Houthi and the ongoing Russian-Ukraine conflict have caused a shortage of skilled seafarers, according to experts.

According to Daejin Lee, global head of research at FertiStream, both Ukraine and Russia had previously provided a significant number of professional seafarers. However, the conflict between these countries has reduced the supply of seafarers from both nations, as they are currently facing labor shortages due to the war.

According to the ICS and BIMCO's 2021 seafarer workforce breakdown report, the Philippines, China, Russia, Ukraine, and Indonesia are the world's largest suppliers of seafarers.

Almost 15% of the global shipping workforce were Russian and Ukrainian seafarers prior to Russia's invasion of Ukraine in February 2022, according to ICS data.

The shipping organization, ICS, stated in an email to CNBC that policymakers must develop national strategies to tackle the predicted shortfall of 90,000 trained seafarers by 2026.

To keep the industry thriving, we must actively recruit a more diverse workforce to meet the shortfall of seafarers, which is one of the biggest challenges our industry is currently facing, according to ICS.

The Iran-backed Houthi militant group's continued targeting of vessels in the Red Sea has made the role less attractive, according to ICS.

No longer an appealing career

According to Henrik Jensen, CEO of Danica Crewing Specialists Group, an international maritime recruitment and manning services company, both existing maritime personnel and younger generations are increasingly choosing shore-based jobs over going out to sea. This may be the end of seafaring as a popular vocation.

According to FertiStream's Lee, seafarers' salaries were once high enough to make it an attractive career choice. However, nowadays, younger individuals prioritize work-life balance and are less inclined to commit to a career that requires extended periods away from home.

Without constant connectivity, a life at sea may not be ideal for those who grew up with the internet and phones at their fingertips, according to Drewry's Harris.

He noted that more companies are attracting the younger generation with entertainment, gym facilities, and shorter voyages ranging from two to four months.

Fake resumes and accidents

Due to the limited pool of talent available, companies are offering higher salaries to attract skilled workers, but some applicants are submitting embellished CVs to secure jobs they are not qualified for, according to industry experts interviewed by CNBC.

Since the shortage, there has been a rise in fake resumes among seafarers, with many fabricating experiences on vessels and time spent at sea, according to analysts.

Jensen, after confirming experiences with seafarers' previous employers, discovered thousands of embellished resumes with the aim of obtaining higher ranks and salaries.

And those on board are paying the price.

A captain in a global shipping company stated that there is a significant shortage of crew members, which is negatively impacting him. He requested that CNBC not reveal his identity due to the possibility of retaliation from their company.

The competence of seafarers is declining because now all that is required is a license, the captain stated, adding that he has had to let go of several seafarers whose skills were questioned.

Seafarers were required to spend longer periods at sea, with fewer individuals available to do so, resulting in increased fatigue and mental strain that could negatively impact their mental health and cause accidents on board.

The safety of ships and crew can be compromised due to inexperience, inadequate maintenance, and fatigue, according to Subhangshu Dutt, executive director of Om Maritime.

In a 2024 study by the World Maritime University, over 93% of 9,214 seafarers surveyed identified fatigue as the most common safety-related challenge on board. Approximately 78% of these seafarers reported not having a full day off during the entirety of a contract period, which can last for months.

Over 80% of global trade is transported via ocean shipping, as stated by the U.N. Trade and Development organization.

As Dutt stated, a lack of crew could disrupt supply chains by causing ships to be held up in ports.

The seafarer shortage is a significant challenge for the industry, and experts predict it will continue for several years. This shortage has led to higher wages for seafarers, which in turn has increased operating costs for ships. As a result, freight rates have also risen, adding some inflationary pressure.

"One of the biggest challenges for the industry is this, as stated by Lee," said Lee.