Cyprus & World News

Cyprus president to address German shipowners in Hamburg

08 May, 2014

President Nicos Anastasiades, on an official visit to Germany, is in Hamburg and will meet the President of the Senate of Hamburg, Mayor Olaf Scholz.

The President will attend and address a luncheon to be hosted by the Cyprus Shipping Chamber for major German shipowners, in the presence of the Minister of Communications and Works Marios Demetriades.

The luncheon, entitled the `Shipping Metropolis` of Germany, is considered very important as Germany has been the largest partner of the Cyprus shipping industry for years.

According to the figures of the Central Bank on ship management, the contribution of German shipowners to revenue from ship management has reached 66 %, which corresponds to € 265 million out of € 402 million total revenue in first half of 2013.

On a half-yearly basis, revenue from ship management showed a decrease of 5.31 %. However, in absolute numbers, revenue declined by just € 22 million, which is something that shows the robustness of the maritime industry in the midst of uncertainty on the island in the wake of the Eurogroup decisions to rescue the economy.

The shipping industry is one of the sectors which has contributed to the cancellation of the pessimistic scenarios providing for a drift of Cypriot GDP in 2013 as a result of tough decisions taken for the Cypriot economy. It is worth mentioning that according to IMF report Cyprus` economic recovery is a credit-less one.

As a percentage of GDP, ship management turnover has increased to 4.9 % due to the continued decline of the economy. The 82% of services (91 % in the second half of 2012) was offered to ships under foreign flag, showing the international nature of the Cypriot shipping industry. Meanwhile, the number of ships under the Cyprus flag doubled from 9% in the second half of 2012 to 18 % in the first half of 2013.

Regarding the provided services, full ship management services corresponds to 45% of the revenue, followed by crew management with 44 % and technical management with 11%.

At the same time, the administrative expenses of ship management continued to decline for a third semester in row, demonstrating the adaptation to an industry which was under pressure at international level since 2008. Thus, industry expenses fell to € 342 million from € 348 in the second half of 2012 and € 362 million in the first half of the same year.