The choices of employing seafarers for the national shipowners in Taiwan: an empirical study

Abstract

This paper focuses on the binary choice behavior of employing seafarers for the Taiwanese’ national shipowners and embraces the empirical investigation based on the Binary Logit Model. First, three groups of important factors have been identified having a bearing on the national shipowners’ hiring preferences: crew cost, competence and efficiency (including knowledge, skills, communication, physical and psychological attitude and conditions), as well as quality standard system complying with STCW95. Then, an empirical analysis, based on a Binary Logit Model about the national shipowners’ choosing seafarers, is conducted to demonstrate the conceptual framework developed in this paper. The results show that the hiring decision is significantly affected by the crew cost. The national shipowners also consider several other factors when hiring officers and ratings. In addition, there are significant differences in hiring preference between the sailing international services and operating the liner ships. In the future, when the Measure shall be amended, the national shipowners will change their behavior to re-choose the foreign seafarers.