Maersk wants to recruit 900 seafarers in China

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6 May 2008

A new joint venture with Chinese partners will make it possible for A.P. Moller-Maersk to recruit seafarers in China.

The partner is Shanghai Yuhai Shipping Company, an offshoot of the Shanghai Maritime University, according to Lloyd’s List. Maersk intends to recruit 900 Chinese seafarers within the next three years, the newspaper writes.

Plans to win market shares in China

Maersk Shipping Hong Kong managing director Henrik Uth told Lloyds’ List that one of the major concerns for the Danish group is that foreign companies are not allowed to directly deploy seafarers in China. Instead, they must be handled by a Chinese agent.

According to Captain Uth, foreign companies will only be allowed to deploy seafarers after operating in China for three years. Authorities also impose the condition that a foreign company must have recruited at least 300 seafarers a year over the three-year period.

The Chinese seafarers may end up sailing under Chinese flags on Maersk ships.
“One of our ambitions is to have Chinese-flagged vessels in our fleet one day,” he told Lloyd’s List.

The reason is that foreign shipping lines cannot register their vessels in China and foreign-flagged vessels are banned from carrying domestic and export cargo between Chinese ports.

China is a vital market for Maersk Line, as the country is predicted to become the world’s largest economy within few years.

Maersk has already made a formal request to the Chinese authorities about operating Chinese registered vessels, according to Henrik Uth.

Protests against dismissals
In February this year Maersk Line announced the dismissals of 200 Danish seafarers on Danish-flagged vessels.

According to Henrik Sloth, Vice President of A P Moller-Maersk this action was taken because: “International crews have proved their abilities and competencies, which means that they can offer an alternative to Danish ship’s cooks and ratings.”

In the end the company chose to suspend the notices after strong protests from Danish unions. During the past twenty years most Danish crew has been replaced by Asian Seafarers on local wages on Danish-flagged ships.

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