Shipping

The market size of the deep sea, coastal, and Great Lakes sector is expected to grow from $594.12 billion in 2024 to $759.68 billion in 2029, according to The Business Research Company. The global market research and consulting firm says that "growth in the historic period can be attributed to global trade and economic growth, commodity transport, maritime infrastructure development, and [increases in] manufacturing and [demand for] consumer goods."

Despite expected revenue growth, the outlook for the shipping industry is uncertain due to numerous factors, such as U.S. and China trade tensions, geopolitics, the rising cost of fuel, and environmental concerns. Another factor that will continue to impact the shipping industry in coming years is piracy. A total of 115 ships were attacked worldwide by pirates in 2022, according to Statista.com. Since late 2023, significant attacks by Yemen’s Iran-backed Houthi rebels on commercial vessels in the Red Sea and the Suez Canal have caused vessels to avoid these bodies of water and to navigate around the Cape of Good Hope. "This has led to extended distances and transit times and higher operational costs for shipping companies, ports, and trade," according to 2024 Review of Maritime Transport, from the United Nations Conference on Trade and Development. "The attacks have compounded environmental challenges for the sector due to the additional carbon emissions generated from higher fuel consumption and the increased sailing speeds needed to maintain service schedules."

Employment in shipping will be affected by newer ships that are designed to be operated by much smaller crews. Automated controls (especially those powered by advanced artificial intelligence and sensing technologies) and computerized monitoring systems in navigation, engine control, watchkeeping, ship management, and cargo handling are some technologies that are reducing the need for large crews. Possible future developments include oceangoing cargo vessels that use jet propulsion, called fast ships. Maritime engineers and scientists are also developing technologies that would harness the power of the wind via giant cylinders that would be mounted on the decks of cargo ships. These cylinders would generate thrust by taking in, pressurizing, and ejecting air in a different direction. These new vessels would decrease ocean-crossing times and in turn, increase business and employment. Crew responsibilities, however, will change and they will need training to learn new skills.

Recent international regulations for higher standards of safety, training, and working conditions should lessen competition from ships that sail under foreign flags of convenience (FOCs). FOCs will have to pay higher insurance rates if they do not comply with the new standards. However, insurance rates for ships under industrialized countries' flags, including that of the United States, should become less expensive, increasing the amount of international cargo carried by U.S. ships.

The U.S. Department of Labor (DOL) reports that 74,300 people were employed in the water transportation industry (which features two components: deep sea, coastal, and Great Lakes, as well as inland water transportation) as of December 2024. At certain points in the year this number may be twice as large, since many merchant marines and seamen work only part of the year. Among other careers in this industry are ship and water vessel captains, mates, and pilots; general and operations managers; laborers and materials movers; sailors and marine oilers; and ship engineers.

The DOL predicts that employment in water transportation occupations is expected to increase by 3 percent from 2023 through 2033. "Fluctuations in the demand for bulk commodities, such as iron ore and grain, is a key factor influencing employment of water transportation workers," according to the DOL. "When demand for these commodities is high, the need for these workers increases; when demand slows, so does the need for workers." Most openings will stem from the need to replace those who leave their positions for land-based jobs. The outlook for specific careers varies by profession. Employment for sailors and marine oilers will increase by 4 percent through 2033, and job opportunities for ship engineers are expected to increase by 3 percent. Both predictions translate to growth that is faster than the average for all careers. Slower-than-average (+2 percent) job growth is predicted for captains, mates, and pilots of water vessels.

The DOL reports that the mean annual wage of workers in water transportation was $80,490 in May 2023. The national average for all private sector workers was $63,098. Workers earned the following average salaries by occupational specialty:

• general and operations managers: $153,050
• captains, mates, and pilots of water vessels: $114,240
• ship engineers: $114,100
• laborers and freight, stock, and material movers, hand: $54,870
• sailors and marine oilers: $53,490