GOLD & Oil (BRENT, WTI) price
On the chart above you can see the currency rate with Gol & Oil prices as well. it is just for information, but the prices in real time. It is very interesting for every seamen about currency rate and everyone gas comparing it with his previous year salary. So, lets look how it is changing from year to year.
Why Salary depreciates
Why Salary depreciates – it is because of the currency rate? Almost 90% of the countries that supply seafarers to the world merchant marine, the value of their wages has dropped markedly. [quote] In some countries, this significant drop has exceeded the 15% barrier! [/quote]
Indeed, seafarers earn an order of magnitude more than shore workers. But, it is worth considering the fact that they receive the same money (albeit in a different amount), which is unstable, both when making money at sea and on land. In addition, they rarely raise rates, since this is a whole procedure – an agreement is needed between the International Federation of Transport Workers and the Association of Shipowners, to which the latter, even taking into account all the arguments “For”, agree reluctantly or do not agree at all. For example, the latest salary increase for ordinary shipowners, of course, was hostile. The ITF wanted to step by step over three years so that the rank and file received $ 50 more. They argued for the increase by the fact that sailors began to bring home a penny in comparison with previous years. That supposedly stable rate was influenced by the instability of the domestic (local) currency in relation to the dollar, as the main unit of payment for seafarers. In general, we managed to agree, but they will increase the rate by only $ 27 in three stages (2 stages have already been passed). The instability of the local currency of the country where the sailors come from naturally affects not only the salaries of privates, but also the officers. The fluctuations of the national currency in some countries are in favor of seafarers who receive wages in dollars. But nevertheless, it is also influenced by another factor – the depreciation of money and the rise in the cost of life. The decision to increase the base rate was made in connection with changes in the consumer price index and the impact that fluctuations in the dollar exchange rate have on other seafarer supplying countries: Have a look closer.
Based on a seafarer’s salary of USD 30,000 per year: in 2009, a seafarer’s income in national currency was about 1 400,000 pesos per year; by 2012 – 1,300,000 pesos / year; by March 2018 – income grew again and amounted to 1,550,000 pesos per year. Thus, from 2012 to 2018, the earnings of a Filipino seafarer, when converted into national currency, increased by about 22%.
The financial crisis of 2008 could not but affect the merchant shipping and this dramatically affected the income of Chinese seafarers. Thus, the income of a Chinese seafarer in 2008 amounted to almost 210,000 yuan / year, in 2013 it was already less – 185,000 yuan / year, by 2017 the situation had improved to almost 205,000 yuan / year, and at the beginning of 2018 it was again a tangible drop in the salary level to 190,000 yuan / year.
Based on the salary of USD 30,000 per year: in 2008 the seafarer’s income was slightly less than 1,200,000 rupees per year, by 2016 the salary of an Indian seafarer reached the level of 2,100,000 rupees per year, and in March 2018 – the income was already about 1,900,000 rupees per year.
For last 8 years period from 2008 to 2016, the amount received in dollars, when converted into the national currency, gradually increased, shifting from the level of 600,000 to 2,000,000 rubles per year. Then this value dropped to 1,700,000 rubles a year. And as of March 2018, the scale remained approximately at the same value. Thus, the volatile exchange rate of the ruble against the dollar in recent years and the devaluation of the ruble over the past 10 years (up to 2018) have led to an increase in the wages of seafarers who were paid in dollars.
Based on the amount of annual income in the amount of 30,000 dollars or 25,000 euros, the seafarer’s income when recalculated from dollar to hryvnia from 2008 to 2013. amounted to about 200,000 hryvnia per year with small annual changes. And since 2013, it has been steadily growing, having reached the mark of 800,000 hryvnia per year by March 2018. Thus, the amount of payment received by a Ukrainian sailor in dollars in national currency has increased significantly more than 4 times since 2008. The situation is the same for payments in euros. Since 2008, the amount has grown 3.5 times.
Sefarers salary VS Currency exchange
As you can see, in the case of the seaman, the changes in the course went to their advantage. But every seaman today can say with confidence that the stable income that he received 10 years ago was enough for him to live, for real estate, for confidence in the future, and today he can hardly make ends meet with the same amount in dollars upon returning home ends up being forced not to stay at home for a long time and earn again. And all because life rises in price, and wages are in the same place.