Cyprus & World News

Revenues from Cyprus shipmanagement industry reached €417 billion in the 2nd half of 2013

06 June, 2014

Revenues from Cyprus shipmanagement industry reached €417 billion in the second half of 2013, recording an increase of 3.72% compared with €402 million in the first half of the same year.

According to the Shipmanagement Survey compiled by the Cyprus Central Bank, shipmanagement contribution to Cyprus GDP reached 5,1% which is the highest figure since the survey was lunched. It should be noted however that the Cypriot economy is in recession since Q2 in 2011.

Shipmanagement proved its resilience as it generated revenues totaling €819 million in 2013, a year when the Cypriot economy plunged in a deep recession as result of a €10 billion bailout that featured a steep haircut of deposit over €100,000 to recapitalise the island`s troubled banks.

A total of 85% of the revenues came from ships carrying foreign flag and 15% by Cypriot ships, compared with 82% and 18% respectively in the first half of 2013.

The majority of payments for the second half of 2013 originated from Germany with 66%, compared with 66% in the first half. The contributions by the other important countries remained relatively stable except from an increase by Greece and a decrease by the Marshall Islands.

Most of the industry’s revenues emanated from the provision of full, crew and technical management services. Full management services remained the most important segment with notable contributions from Russia and Malta. In the case of crew management services, nearly half of the revenues originated from Germany.

Ship management expenses increased despite some significant reductions during the previous periods. Cross–border expenses of the industry, excluding expenses paid in Cyprus, accelerated to €368 million.

Most of these expenses were directed to the Philippines, Poland and Ukraine and concerned wages (55%) paid to seafarers. Twenty percent of the expenses were paid in Cyprus and concerned primarily administration expenses.