Ship management revenue recovering

Revenue from Cyprus’ ship management industry continued its upward trend in the second half of 2022, reaching €648 mln, up by 25.6% year on year.

Throughout 2022, revenue from ship management amounted to €1.22 bln.

According to the ship management survey compiled by the Central Bank of Cyprus, the industry’s revenue in H2 2022 marked an increase of 12.9% compared with H1, showing that it continues on a recovery course following the disruption of the COVID-19 pandemic.

“This is the fourth consecutive increase in the total revenues of the industry since the recovery of global trade from the COVID-19 pandemic and the associated decline in economic activity,” the CBC said.

By country of payment, Germany remained the industry’s biggest market, with a 41% share of total revenues.

Other notable share contributions during H2 include Greece (16%), Malta (5%), Switzerland (5%), the USA (4%) and Singapore (4%), manifesting the industry’s globalised nature.

With regard to ship management services, crew management services amounted to 49%, followed by full management services at 47.1%, whereas technical management was 3.9%.

According to the CBC, Ship management expenses rose by 18.2% to €629 mln, compared with €532 mln in H1 2022, while the annual change was 38%.

The majority of the industry’s spending, with a share of 64%, was channelled to crew expenses, followed by ship management (e.g., spare parts, lubricants, dry-docking, etc.) with 31%, whereas administration expenses amounted to 5%.

According to the report, 47% of crew expenses were directed to non-EU seafarers, while 17% were EU crew earnings.

“Historically, the industry exhibits a relatively stable structure of expenses,” the CBC noted.