Last year, I wrote that the addition of international services by domestic ocean carriers and Asia-based shipping lines entering the U.S. marketplace would have a noticeable effect on maritime transportation employment. As a result, we saw aggressive hiring in early 2011.
Today, under ongoing economic uncertainty, many of these companies have suspended services or reduced U.S. operations significantly. As a result, we are now seeing dramatic fallout, with some companies reporting reductions in U.S. staff by as much as 30 percent.
Many of those employees who joined new companies during the hiring surge were enticed by salaries well above industry norms. With the recent layoffs, those downsized professionals will have to be willing to accept more realistic market compensation levels.
Adding to the challenge, in some geographic regions, there are simply too few ocean carriers for displaced employees to find comparable positions. We believe relocation may have to become a consideration as the realization hits that local job prospects may not be viable. Given the ongoing challenge of a depressed real estate market, some families may be forced to stay behind, at least temporarily, as job seekers eager to get back to work will be more likely than ever to take positions in other cities.
Although 2011 presented numerous challenges, we experienced significant hiring activity at all levels. Although many obstacles to renewed job growth remain, we hope 2012 will be a year of stability and growth in the industry.