Shipmanagement revenue recovers  

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Revenue from the shipmanagement sector in Cyprus showed a small increase in the first six months of 2021, reflecting the recovery in global shipping after the disruption caused by the COVID pandemic.

According to the Ship Management Survey for January – June 2021, by the Central Bank of Cyprus (CBC), revenue from ship management amounted to €447 mln or 4.1% of Cyprus GDP (in turnover terms) compared with €430 mln in July – December 2020.

The CBC said the increase marked “a gradual recovery from the COVID-19 pandemic and the associated decline in economic activity observed during 2020”.

In terms of country of origin, Germany remains Cyprus’ biggest market with a share of 45% of total revenue (compared with 42% in Q2 2020), followed by Greece, whose share rose to 13% from 12% in Q2 2020.

On the other hand, the share of Singapore, Malta and Marshal Islands’ marked a minor reduction to 7%, 3% and 3% compared with 9%, 7% and 4% in Q2 2020, respectively.

The Cyprus shipmanagement sector remains broadly international.

The CBC added that 59% of revenue came from ships under foreign registries, while 41% of the total revenue came from the management of Cypriot flag vessels.

Of the €447 mln revenue, full ship management services declined slightly to 47%; crew ship management rose to 49% of total revenue while technical management remained steady at 3%.

These shares are close to the levels observed in Q2 2019.

Shipmanagement expenditure rose to €425 mln in H1 2021 compared with €416 mln in H2 2020, marking an increase of 2.2% compared with H2 2020 and broadly stable (0.5%) compared with H1 2020.

Some 60% of total spending went on crew payments, 44% to Non-EU seafarers and 16% to EU nationals.

Shipmanagement expenditure (spare parts, lubricants, and dry-docking) accounted for 27% of spending and 13% concerned administrative expenses.

Cyprus is considered as the EU’s largest ship management centre and among the top 3 globally.