=Paper= {{Paper |id=Vol-2422/paper29 |storemode=property |title=Optimizing the Income of a Crewing Company |pdfUrl=https://ceur-ws.org/Vol-2422/paper29.pdf |volume=Vol-2422 |authors=Larysa Ivashko,Tetiana Zhuravlova,Yuliya Zhuravlova |dblpUrl=https://dblp.org/rec/conf/m3e2/IvashkoZZ19 }} ==Optimizing the Income of a Crewing Company== https://ceur-ws.org/Vol-2422/paper29.pdf
                                                                                              357


          Optimizing the Income of a Crewing Company

           Larysa Ivashko[0000-0002-3921-9072], Tetiana Zhuravlova[0000-0002-4235-1955]

    Odessa I. I. Mechnikov National University, 2, Dvoryanska Str., 2, Odesa, 65000, Ukraine
                    ivashkolm@ukr.net, yutal0606@gmail.com

                              Yuliya Zhuravlova[0000-0003-4794-7691]

      Odessa National Economic University, 8, Preobrazhenska Str., Odesa, 65000, Ukraine
                              yunik121501@gmail.com



         Abstract. The article analyzes the status, trends and prospects of the
         development of the world labor market in the field of the maritime fleet, which
         makes it possible to determine that for this particular segment, characterized by
         stable dynamic development in the presence of significant reserves. The
         theoretical and practical aspects of formation and development of the market of
         crewing services in Ukraine are also covered. The paper considers such an
         important task as the selection of the optimal crew for ships’ shipowners in order
         to maximize the income of the crewing company. The economic-mathematical
         model of optimization of the process of selection of crews of ships was
         constructed. In this case, the crewing company, which has completed the work
         on selecting the optimal crew, receives income as a percentage of the
         remuneration chosen through the model of the crew for the first month of his
         work. The more qualified this crew, the greater the income will receive a crewing
         company.

         Keywords: maritime labor market, crewing company, selection of personnel,
         economic and mathematical modeling.


1        Introduction

Ukraine is a maritime state and famous supplier of skilled marine personnel in the
international labour market. Each year, about 69 thousand Ukrainian sailors occupy
their places in the felling and technical departments of ships around the world. By level
of professional training, communication skills and discipline Ukrainian sailors occupy
one of the first places in the world, yielding only to Filipinos, sometimes to the Chinese.
In addition, 56% of all hired frames are team members. But due to the difficult way of
employment without crewing companies, a significant number of maritime workers
remain unemployed. The same problem exists in shipping companies: without crewing
companies is difficult to communicate to seamen with the required qualifications. Ship-
owners are interested in ensuring that their ships are equipped with a highly skilled
crew; seamen have an interest in getting paid jobs on board shipowners; intermediary
companies see their interest in meeting the needs of both the shipowner and the seaman,
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as well as obtaining income from their activities. The competitiveness of shipping
companies directly depends on the effective functioning of the crewing company. The
professionalism of the crewing company is evaluated not only by the ability to satisfy
customers’ requests, but also to adjust them according to market realities and offer
different ways of their satisfaction. Income derived from the recruitment of crew ships –
this is one of the main indicators of the crewing agency (as well as any other company).
Therefore, the most important for crewing companies is the task of optimal distribution
of crew members, for which it is expedient to use economic and mathematical
modeling.
    Selection of crews of ships is an important part of the operations of the crewing
company and an interesting task for the application of economic-mathematical
modeling. Optimization of the selection of crews of ships received much less attention
in the academic literature. In the works of the named scientists proposed management
options for solving this problem. Therefore, the purpose of the study is to apply
economic and mathematical modeling for optimal manning crewing company crews of
ships sailors required qualifications to maximize its revenue.
    Crewing is part of the international maritime industry. The word comes from the
English crew – the team. It also deals with the complete set of commands. Unlike low-
skilled professionals who are in demand in different countries, crewing deals with
professionals in maritime professions. They graduated from the profile, usually higher
education institutions, have long experience in managing the courts or their systems,
know English, international law within their responsibilities, experience in
communicating with representatives of different peoples. Of all the specialists selected
for work, two thirds – the command staff. But even at the level of ordinary sailors have
their own peculiarities. These are people who intend to climb up the service stages. The
vast majority of them are studying and practicing on ships. Therefore, creeping is not
like recruiting companies, even at recruitment agencies. Indeed, their responsibilities
include not only the selection of personnel, but their testing for compliance.
    Improvement in maritime education never stops. The demand for graduates of
Ukrainian marine higher education institutions and institutions of secondary education
is very high. Many foreign companies that have long-term programs of using Ukrainian
sailors on their ships invest significant funds in training through their own “cadet
programs”, providing sponsorship to marine training institutions, setting up their own
training centers for the further training of seamen immediately before the voyage.
Within the framework of cadet programs companies together with educational
institutions conduct selection of cadets in accordance with the requirements of the
company (knowledge of English, training, availability of necessary certificates),
organize planning and control of the implementation of the program of floating practice
on ships. In addition, the company assumes all the costs associated with the practice
(flights, transfers, accommodation on board and in hotels, visa support, insurance,
medical care, food, salary in accordance with the terms of an individual contract,
practice on board ship). The most active in this area are the following companies in the
Ukrainian market: V. Ships (Monaco), MSC Mediterranean Shipping Company
(Switzerland), Bernard Schulte Shipmanagement Ltd., Peter Doehle Schiffanrts-KG,
Marlow Navigation, Reederei BlueStar (Germany), Wagenberg Shipping BV, Stolt-
                                                                                        359


Nielsen Transportation Group BV (Norway), Maersk Ship Management (Denmark),
ASP Ship Management Group (Australia), Anglo-Eastern Ship Management
(Singapore) and others [1].
   Consider the types of crewing companies. Therefore, in pure creeping, if the seaman-
candidate meets the requirements of the shipowner, he is taken to work and, after a
certain period of time, is sent to the ship specified by him, where he begins to fulfill his
labor duties. The intermediary firm for the employment assistance assisted receives a
pre-defined remuneration from the client who contacted to it. This is usually either a
fixed amount or a percentage of the basic salary of a sailor employed by a ship under a
particular flag without the client’s financial expenses incurred by the intermediary firm.
   Crewing management is the more complex form of crewing that occurs on the
international seamen’s and maritime professionals’ market. His point is that the
shipowner completely transfers to the intermediary company the responsibility for
resolving all issues related to the manning and management of the ship’s crew. Crewing
management can: Assist in arranging the necessary visas, processing sub-documents,
booking air tickets, as well as informational and consulting support, conducting or
organizing training or training of seamen, sending a candidate for a medical
examination, engaging in the supply and sewing of work clothes, with trade unions and
public organizations, etc. Also, companies can pay crew wages, draw up and maintain
a timetable for changes to the crew, and more. In this case, the shipowner pays to the
firm the intermediary a pre-determined fixed monthly cash sum, at the expense of which
reimbursed expenses for wages, overtime pay, various additional payments and
bonuses. These include: organizational expenses for servicing the crew, its delivery to
the port of destination on board the ship; exchange with the Maritime Administration
of the Flag State of the presented diplomas and qualification certificates; expenses on
insurance of crew members from accidents; payment for crew on board; payment of
working clothes and personal protective equipment, etc. The difference between the
actual costs incurred by the intermediary company and the compensation paid by the
shipowner as compensation for the costs incurred is the net profit of the intermediary
company.
   The international labor market for seamen and marine specialists has become
widespread and an organizational form of mediation in employment, such as the
creation of a shipowner or group of shipowners representation in those foreign
countries, where mainly the recruitment of personnel of crew of ships. For example,
today the company V-Ships represents 79 offices in 33 countries, 1200 ships and 25
thousand sailors, one third of who are Ukrainians. It is this part that is the merit of the
office of Igor Safin (Managing Director of V-Ships), who managed to raise the level of
recruitment from 700 to seven thousand Ukrainian seamen per year in 10 years [1].
Therefore, a seaman who is in need of employment, receives work directly from the
hands of a potential employer. Among the hundreds of intermediary firms engaged in
the employment of seamen, there are those that are created in Western Europe. These
firms, as a rule, show a high organizational level.
   Consequently, the elementary forms of pure creeping were transformed into new,
integrated forms of service for shipowners and seamen, ranging from recruitment and
training of personnel to management ship of shipowners. In this case, the shipowner
360


loses the need to maintain expensive services engaged in the technical and commercial
exploitation of ships. In addition, he receives a guaranteed source of replenishment of
the staffing of crews of ships, which is characterized by stability and subject to control.
The intermediary company, which owns a well-designed questionnaire for applicants
for mariners, can respond quickly and flexibly to shipowner inquiries regarding the
crew of ships. Currently, crewing companies and their branches are available in any
port city of Ukraine: Odessa, Chornomorsk, Yuzhne, Mykolaiv, Izmail, Mariupol,
Kherson and others. The number of crewing companies in the four largest supplier
countries of the maritime labor force of the former USSR is as follows: Ukraine has
374 agencies in 2009, 450 in 2018; Russia – 176; Latvia – 59; Lithuania – 7. Given the
relatively small number of seamen in the Baltic countries and the less attractive work
at sea for EU citizens, the Baltic agencies are actively recruiting sailors from Ukraine
and Russia [2].
   In recent years, there has been a process of active entry of large foreign companies
into the Russian and especially Ukrainian market: the opening of representative offices,
as well as the absorption of local companies in order to join them in the global office
system. Ukraine has all the key European players in the market for crewing services, as
well as a significant number of companies from the Asian region. In addition, a
significant number of large shipping companies have opened their offices, which are
also engaged in recruiting staff. The presence of foreign capital is increasingly felt in
the Ukrainian market and slightly less in the Russian market. If in the early 2000s
almost all companies were independent, then the process of entering the network of
offices of international crewing agencies began to take place the so-called globalization.
   Authoritative international organizations BIMCO and ISF prepare a joint study of
the labor market in the world maritime trading fleet every five years – Manpower
Report. Such studies have been conducted since 1990. The latest Manpower Report was
presented in May 2016 [3]. This study helps to assess the role and place of Ukrainian
seamen in the world maritime labor market. In our country, such studies are not
conducted, and on the question of how many Ukrainian seamen working on ships of
the world navy fleet, different answers can be received at various instances. For
example, in the spring of 2018, the Ministry of Infrastructure officially voiced a figure
of 150 thousand. So many Ukrainian sailors, according to the ministry, today operate
in the fleet [1]. Manpower Report 2016 from BIMCO and ICS calls quite different
numbers. According to BIMCO and ISF, Ukraine continues to be part of a group of
countries leaders in supplying seamen to the world fleet. According to the report, in
Ukraine, 234,923 people are sailors, but 69,000 sailors were actually delivered to the
fleet in 2015, in addition to 39,000 officers and 30,000 ordinary [2, 4]. In essence, it is
about the number of jobs occupied by Ukrainian sailors in 2015. This is the sixth place
in the world after China (243.6 thousand), the Philippines (215.5 thousand), Indonesia
(143.7 thousand), Russia (97 thousand), and India (86 thousand) (Table 1).
   But the population of all above mentioned countries significantly exceeds the
population of Ukraine. And if we take such an indicator as the share of jobs occupied
by sailors in the population of these countries, then Ukraine will be in second place
after the Philippines. By % of officers among the total number of seamen, Ukraine came
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second only to India. Thus, every 20th officer of the merchant fleet in the world – from
Ukraine. If we talk about the countries of Europe, then among them Ukraine is a leader.

          Table 1. Countries are the largest suppliers of seamen to the labor market.
                                                   % officers of % officers
             Population Number Number the country                among the % sailors to
 Country
             (2015 year) of seamen of officers among all total number population
                                                      officers   of seamen
                              244        102
   China      1.4 billion                               13.1         42      0.017
                           thousand thousand
                              216         73
Philippines 105 million                                  9.4         34      0.205
                           thousand thousand
                              144         51
 Indonesia 264 million                                   6.7         35      0.054
                           thousand thousand
                              97          48
   Russia    144 million                                 6.2         49      0.067
                           thousand thousand
                              86          70
   India      1.3 billion                                 9          81      0.006
                           thousand thousand
                              69          39
  Ukraine     44 million                                  5          57      0.156
                           thousand thousand
   Source: compiled by the author on the basis of [2, 3, 4]

   BIMCO and ISF also publish information on the number of seamen in the world
fleet, according to shipping companies. In this rating Ukraine is already fourth in China,
the Philippines and Russia. Unfortunately, there is no statistics on the number of
seamen in Ukraine. The only official data that can be used for some sort of orientation
is the Seafarers' Training and Certification Inspection, which maintains a register of
documents issued to seamen, and certificates giving the right to occupy certain
positions in the fleet. According to the register in October 2017, such operating
documents issued about 112 thousand [2].
   There are about 450 crewing companies in Ukraine who are engaged in the supply
of seamen abroad. Almost every major shipping company is guided by 5-10 different
countries from where seamen are recruited from its ship. It is believed that China
overtook the Philippines as the largest source of supply for seamen qualified for
international trade. Although the Philippines is still the largest source of supply to the
private shipping fleet [2]. However, data from international shipping companies
suggests that the use of Chinese seamen to service foreign ships may be limited; since
the Philippines and Russia are seen as equally important sources of officers, while
Ukraine and India are following them firmly.
   During the last five years, the global supply of seamen has increased, and the number
of qualified officers and ordinary people operating in the international merchant fleet
continues to grow. It was reported that from 2005 to 2010, the number of officers
increased by 34%, and now it is estimated to increase by 24% over the past five years.
The total demand for seamen in 2015 was estimated at 1 545 000 seamen: about 790.5
thousand officers and 754.5 thousand ordinary. Demand for officials increased by about
24.1% from 2010, while demand for ordinary people increased by about 1.0%. The
estimation of demand for officials and ordinary persons in 2015 as compared to the
362


demand estimate presented in the previous reports is given in Table Estimated global
demand for seafarers 2005-2015 [3]
    Thus, if the expected demand for officials and ordinary people increased between
2005 and 2010 by 33.8% and 27.5%, respectively, then the demand for officers
continued, with only a slight increase in demand for ordinary people from 2010 year
[3].
    Estimates prepared for the 2015 report indicate that the current seamen global offer
is about 1 647 500 seamen, of which approximately 774 000 are officers and 873 500
are seamen, and that the current world demand for seafarers is about 1 545 000 seamen,
besides, the industry needs about 790.5 thousand officers and 754.5 thousand ordinary
people. The current situation is as follows: a deficit of 16,500 officers and an excess of
119 000 ordinary people, with a total surplus of 102 500 seamen. This information is
presented in the Table Current estimated global supply and demand of seafarers [3].
    It is estimated that the level of employment and training of specialists over the past
five years has increased. The basic forecast for the future supply and demand balance
is calculated based on the information and data received for the 2015 report. It consists
in the fact that the global supply of officers will steadily increase, but there will be a
surging rising demand for officers. This is evidenced by data of the Tables Estimated
supply-demand balance for officers [3].
    The 2015 report indicates that the global merchant fleet is expected to grow in the
next ten years, and demand for seamen is likely to continue to tend to general shortage
offerings of officers. ICS and BIMCO predict that if the level of training is not
significantly increased, the growth in demand for seamen could lead to a serious
shortage of officers. Some officer categories are particularly scarce, in particular,
engineers, managers, and officers for specialized ships such as chemicals, etc. The
shortage of seamen will be observed despite the improvement in recruitment and
training and the reduction in staffing levels over the past years. It should not be expected
that there will be a lot of proposals from qualified and competent seamen in the future,
even taking into account coordinated efforts and measures to address key human
resource problems. It is important to promote a career in the sea, to strengthen maritime
education and training all over the world, to address the conservation challenges of
seamen and to continue to monitor the global supply and demand of seamen on a regular
basis. Without continuing efforts to promote a career at sea and to improve recruitment
and staffing, it is impossible to guarantee that a large number of skilled and competent
seamen will be provided in the future. According to the report, over the past five years,
the maritime industry has made significant progress in increasing recruitment and
training and lowering the cost of officers (retaining skilled seamen and increasing the
number of years they serve at sea) [3, 5, 6, 7, 8].
    Taking into account the presented analytical data it can be seen that the need for
crewing services will continue to grow. The need to improve the quality of such services
and improve the performance of these organizations (in particular, careful selection of
personnel that meets the needs of the shipowner) is evident. Achievement of this goal
will allow Ukrainian sailors to take advantage of their foreign counterparts when
choosing shipowners for the required positions.
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2      Development of the Optimization Model

Usually, the process of selecting a shipping crew by crewing companies specialists is
carried out according to the algorithm of assessing candidates in the process of
providing services by the crewing company and consists of the identification by means
of modern specialized methods and technologies of a qualitative level of professional,
qualification, personal characteristics, as well as motivational installations of the
candidates that make up the pool. The purpose of the evaluation is to determine the
numerical or descriptive values characteristics of the candidates. Candidates who
constitute a pool should be evaluated using a single assessment system to obtain
comparable results [9].
   The selection of candidates is a professional activity, which represents the process
of making a decision on the choice of certain applicants for employment in accordance
with the existing staffing needs of the organization of the customer. The selection is
carried out by comparing the results of the evaluation of individual candidates that
make up the pool. The result of the selection is one or more candidates who will later
be represented by the shipowner organizations who need personnel for employment
[10]. If the seamen is successfully employed on the ship of the customer company, the
crewing agent receives a remuneration from the shipowner or the occupant of the
position. Most often, this is a certain amount paid for each month (or day) of the
seamen’s work on board, although there may also be a fixed remuneration, the size of
which does not depend on the duration of the seamen`s stay on board. Such payments
may be paid for each contracted sailor, but some shipowners (usually in the oil and gas
industry) are practicing a one-time payment for the selection of the specialist they
require. Often this amount is calculated by computation the percentage of the wages of
the employee they need. Accordingly, the more valuable and, accordingly, the highly
paid specialist will find a recruiting firm, the greater will be the size of its remuneration
[9]. It is known that the quality of services provided by crewing companies is reflected
not only in the quality of satisfaction of the needs of the shipowner in the personnel,
but also indirectly affects the operation of the shipping company as a whole.
   In the absence of skilled personnel of the shipping company, great importance should
be given to measures aimed at attracting, retaining the company and encouraging the
development of a shipping crew, that is, measures of material and moral motivation.
An additional method of material motivation can be the bonus system of pay, as well
as the system of rewards sailor for excellent work. In practice, the main purpose of
employment, as a rule, is the receipt of material remuneration. For a seaman, the highest
possible earnings are associated with a number of negative non-material factors (long
working day, bad working conditions, long separation from relatives, etc.). At the same
time, work under such difficult conditions, besides high pay, can ensure the
implementation of other competing goals (career development, professional
experience, consolidation in a prestigious shipping company, etc.) [11].
Implementation of retraining and refresher training, as well as compensation of
expenses for training and passing medical board, implementation of social guarantees
for seamen, as well as carrying out measures to improve professional skills of
recruitment managers, introduction of modern methods of testing seamen are
364


unconditional factors of efficiency improvement functioning of the crewing company
and strengthening its competitiveness among others [9].
   Therefore, the task of optimizing the selection of crews by using the application of
econometric and mathematical modeling remains very relevant.
   As the basis for constructing an optimization model for the selection of crews of
ships of maximum qualification, we will use the economic-mathematical model of the
problem of appointment. We formulate the statement of the task of selecting the
personnel of the maximum qualification for each position of the ship by the crewing
company [12]. According to the analysis of the respective subscribed sites and its own
database, the crewing company has selected a certain number of candidates for each of
the vacant positions on the ships of the shipping companies. The positions are vacant
or on the ships of companies with which the crewing company has an exclusive contract
for servicing certain ships, or found on pre-paid sites. The selection is carried out
according to the designated services of the customer - the shipping company - the
parameters: the qualitative level of professional, qualification, personal characteristics,
as well as the motivational units of candidates. For example, such as: specialty; age;
necessary experience and work experience on certain ships; level of qualification
(checked, in particular, on simulators); availability of certificates necessary for work;
compliance of the sailor period of validity with the terms of the contract; compliance
with health indicators; compliance with special documents, in particular subrogation,
the ability to work in a particular region under the banner of a particular country, etc.
These parameters determine the qualification characteristic c i-th candidate for j-th
position on k-th ship. That is, the efficiency of the work of each specialist in the
performance of a particular type of work on a particular ship is known – cijk (i=1, ..., n;
j=1, ..., m; k=1, ..., l). Matrix of qualifying characteristics of n candidates for Bj position
on l ships – Cj – presented in the table 2.

                Table 2. Matrix of qualification characteristics by j-th position, Cj.
                                            Ships with vacancies for
                                                                      Number candidates for
      Candidates for j-th position, Aij           j-th positions
                                                                         j-th position, aij
                                             Sj1     Sj2    …    Sjl
                 A1j                         c1j1    c1j2    …   c1jl            1
                 A2j                         c2j1    c2j2    …   c2jl            1
                 …                           …        …      …   …              …
                 Anj                         cnj1    cnj2    …   cnjl            1
 Number of vacant staffed posts per
                                              bj1    bj2     …     bjl
   j-th position on k-th ship, bjk

    Thus, n candidates have been selected Aij, who can and wish to take j-th vacant
position (i=1, ..., n; j=1, ..., m).
    Let the international seamen’s market (in the market sector) have available vacancies
at j-th position on ships of different shipowners, k=1, ..., l. The crewing agency either
already cooperates with these shipowners or has the opportunity to start cooperation
with them. Let’s denote through bjk number of sailors, which is planned to be replaced
j-th position on k-th ship. So, on k-th ship by j-th position are open bjk vacancies.
                                                                                      365


   Assume that the crewing agency when sending one i-th candidate by j-th position on
k-th ship receives income in size dijk as a certain percentage of the seaman’s salary
amount qijk.
   Matrix salaries of sailors at j-th position Qj presented in the table 3.

                        Table 3. Matrix of salary on j-th position, Qj.
                                                     Salary on j-th positions
                 Candidates for j-th position, Aij
                                                      Sj1    Sj2 … Sjl
                                A1j                   q1j1 q1j2 … q1jl
                                A2j                   q2j1 q2j2 … q2jl
                                …                     …      …      … …
                                Anj                   qnj1 qnj2 … qnjl

   Each sailor can be sent for only one job. And for each position, the number of
specialists may be assigned in accordance with the staffing schedule of the crew of the
ship, which is determined by the shipping company.
   It is necessary to appoint seamen-candidates for corresponding vacant positions on
ships, so that the overall efficiency of all work is maximal. That is, it is necessary to
entrust each candidate with the performance of one particular work on a particular ship
in order to maximize the qualification of each position. The matrix of candidate
nominations for j-th position Xj presented in the table 4.

                   Table 4. The matrix of assignments on j-th position, Xj.
                                         Ships with vacancies for
                                                                   Number candidates for
   Candidates for j-th position, Aij           j-th positions
                                                                      j-th position, aij
                                          Sj1     Sj2    …    Sjl
                A1j                       x1j1    x1j2    …   x1jl            1
                A2j                       x2j1    x2j2    …   x2jl            1
                …                         …        …      …   …              …
                Anj                       xnj1    xnj2    …   xnjl            1
Number of vacant staffed posts per j-
                                          bj1     bj2    …      bjl
   th position on k-th ship, bjk

   This is a statement of the classical task of appointment.
   Let’s make an economic-mathematical model of the task.
   Let’s denote through xijk – fact of appointment i-th candidate on j-th position on k-th
ship.
   We will assume that:
                           1, if − ℎ candidate is appointed
                           on − ℎ position on − ℎ ship ;
                         0, if − ℎ candidate is not appointed
                            on − ℎ position on − ℎ ship.
Output parameters of the task of optimization of selection of frames of crews of ships:
  n – number of candidates for j-th position;
366


    m – number of positions;
    aij=1 – unit amount of resource: the candidate Ai can only be assigned to one j-th
position;
    bjk = t – number of vacant staffed positions per position Bj on k-th ship;
    sjk = l – number of ships Sk, where vacant position Bj;
    cijk – qualification characteristic of the candidate Ai for performance of work on the
position Bj on k-th ship;
    xijk – fact of appointment or non-appointment of a candidate Ai on the position Bj on
k-th ship;
    Zj – general (total) quality characteristics of the distribution of candidates for j-th
position;
    Z – general (total) quality characteristics of the distribution of candidates for all
positions.
    Dj – income earned by the crewing company as % of the wages of candidates
assigned to j-th position;
        – income received by the crewing company as % of the salary of candidates
appointed for all positions.
    The task is to find the distribution Xj=(xijk) sailors on ships for each j-th position (that
is, to find a matrix of appointments), which maximizes the target function:

                       = (     )= ∑       ∑            ∗       →                            (1)

for limitations:
                               ∑           = 1,       = 1; ;
                                                                                            (2)
                              ∑          =        ,   = 1; .

and
                            1, if − ℎ candidate is appointed
                            on − ℎ position on − ℎ ship ;
                                                                                            (3)
                          0, if − ℎ candidate is not appointed
                             on − ℎ position on − ℎ ship.
Thus, the economic-mathematical model of selection of personnel of the maximum
qualification for each position of crews of ships is represented by formulas (1) – (3).
   The more highly-paid personnel will pick up the crewing company, the higher its
income.
   Next we will find the income received by the company as % of the wages of the
candidates assigned to j-th position. Let it be fixed for today, % – 10%.

                               = 0.1 ∑        ∑            ∗                                (4)

That is, the income of the crewing from the main activity will be:
                                         = ∑                                                (5)
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In order to find the profit of a crewing company, it is necessary to deduct from the
income constant Vconst and variables Vvar costs.
   How variable costs Vvar we consider the costs of crewing to verify the legitimacy of
documents seamen (work diplomas), selected for a position on a particular ship. The
fixed pay for such a service, such as checking the legitimacy of documents, today
amounts to UAH 150 per person.

                               = 150 ∗ ∑        ∑     ∑                                       (6)

The following costs are incurred for permanent creeping expenses: support for a
database template, site maintenance, office rental, utility payments, salary of office
workers, certification of crewing, taxes, etc.).
   Consequently, we obtain a formula for finding income from the main activity of
crewing.
                                   =    −       −                                             (7)
With the help of constructed economic-mathematical model of selection of personnel
of the maximum qualification, we will make a selection of captains for the crewing
company “Alfa crewing”. Let assembled to construct a model of choice of captains
(j = 1) information is presented tablotically (Table 5 – 7).

        Table 5. Matrix of qualification characteristics by j=1 Captain’s position, C1.
                                       Ships with vacancies for j=1
                                                                        Number candidates
 Candidates for j=1 position, Ai1           Captain’s position
                                                                        for j=1 position, ai1
                                        S11    S12      S13     S11
                A11                    0.75    0.9     0.8     0.75               1
                A21                    0.82   0.69     0.93    0.82               1
                A31                    0.94   0.78     0.85    0.94               1
                A41                    0.76   0.92     0.88    0.76               1
 Number of vacant staffed posts
                                        1        1        1        1
 per j=1 position on k-th ship, b1k

                    Table 6. Matrix of salary on j=1 Captain’s position, Q1.
                                   Salary of the captain on the ships, thousands of dollars
Candidates for j=1 position, Ai1
                                        S11           S12            S13          S11
              A11                       8.1           9.3           8.6           8.1
              A21                       8.8            8            9.5           8.8
              A31                       9.6           8.4           9.1           9.6
              A41                       8.2           9.4           9.2           8.2

  The economic-mathematical model of selection of captains of the maximum
qualification is represented by the formulas 8-10:

                       = (      )= ∑        ∑         ∗        →                              (8)

for limitations:
368


                                       ∑          ≤ 1,
                                     ⎧
                                     ⎪∑           ≤ 1,
                                     ⎪∑           ≤ 1,
                                      ∑           ≤ 1,                                   (9)
                                     ⎨ ∑
                                                  = 1,
                                     ⎪
                                     ⎪ ∑          = 1,
                                     ⎩ ∑          = 1.

and
                              1, if − ℎ candidate is appointed
                               on = 1 position on − ℎ ship ;
                                                                                        (10)
                            0, if − ℎ candidate is not appointed
                               on = 1 position on − ℎ ship.

                Table 7. The matrix of assignments on j=1 Captain’s position, X1.
                                         Ships with vacancies for j=1
                                                                       Number candidates for
    Candidates for j=1 position, Ai1           Captain’s position
                                                                          j=1 position, ai1
                                          S11     S12     S13     S11
                   A11                    x111    x112    x113    x111           1
                   A21                    x211    x212    x213    x211           1
                   A31                    x311    x312    x313    x311           1
                   A41                    x411    x412    x413    x411           1
    Number of vacant staffed posts
                                           1      1      1       1
    per j=1 position on k-th ship, b1k

   The results of implementing the model in the Excel environment are shown in the
figure 1.
   Therefore, in order for the overall qualification of candidates for the position of the
captain to be maximal, they should be assigned as follows: will receive the appointment
of Captains 2, 3 and 4 candidates; 1 candidate will not receive a job this time; all vessels,
on which the vacant position of the captain was, will be provided by the performers of
work (J3-J6). In addition, the profit of the crewing company will be 2.85 thousand
dollars (H8).
   Similarly, it is possible to distribute candidates for all vacant positions of crews of
vessels. Therefore, crewing company “Alfa crewing” it is expedient to apply economic-
mathematical modeling for management of selection of personnel in order to maximize
the overall qualification characteristic. The use of such a toolkit allows you to determine
who and on what ship to appoint to one or another position in order to maximize
profitability.


3        Resulting and Conclusions

Thus, we can formulate conclusions about the conducted research. The model of
optimization of the selection process for crews of ships can be applied for distribution
                                                                                             369


of personnel to ship of any categories, including bulk carriers, tankers, container
carriers, etc.




  Fig. 1. The result of the selection of personnel of the maximum qualification for position of
                                              captain

The model can be applied to create on its basis models of decision support systems.
   The results of the study can be used by the managers of crewing companies,
managers and employees of the services of work with the personnel of shipping
companies.
   The practical significance of the study is that the use by the crewing companies of
the proposed recommendations for the application of methods of economic and
mathematical modeling for the selection of skilled personnel for each position will
increase the efficiency of the organization of the work of the crew of ships, as well as
optimize the income of the crewing company. Optimization not only increases the
efficiency of the crewing company, but also increases its responsibility. After all, the
quality of services provided by crewing companies reflects not only the quality of
meeting the needs of shipping companies in the personnel, but also affects both the
quality of service provided by shipping companies and the efficiency of the operation
of shipping companies in general.
370


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