By Land or Sea, Shipping Woes Worsen Amid Crew Shortages

Once the ball drops on 2021, many of the same supply chain issues will follow the industry into 2022, dragging along unresolved problems that have no easy fix. From worldwide worker shortages and inexperienced crews to virus fears and vaccination debates, the global operation that fills shoppers’ carts is still experiencing pandemic woes.

Despite signing bonuses and higher wages, sailors are staying landlocked, and truckers are off the road, leaving the transportation sector trying to prepare for another tough year of moving goods.

The International Road Transport Union told Bloomberg that roughly one-fifth of all trucking jobs are open, even though wages are higher. Hiring looks grim for the future in many areas of shipping as well.

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Simon Heaney, an analyst at maritime research consultancy Drewry, told Bloomberg that it’s not looking good for 2022, which could be “another year of severe disruption, under supply and extreme cost for cargo owners.”

“The virus is once again showing it’s in charge,” he added.

Even before the COVID-19 variant omicron showed up, the supply chain industry was already in a frenzied state of trying to catch up from the original pandemic and the subsequent delta wave. Companies have reported that some people are simply turning down contracts, while others have left the industry altogether.

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Singapore tanker operator Western Shipping told Bloomberg that about 20% of its mariners aren’t coming back aboard. Anglo-Eastern Univan Group said of its 30,000 mariners, 5% declined a new contract.

Vaccination requirements could make the shortages worse. Some shipowners and charters insist on a vaccinated crew. With the added requirement of a booster, it makes it harder to find trained crew. Most mariners come from the Philippines and India, but less than 30% were fully vaccinated, according to the Neptune Declaration indicator, per Bloomberg.