Skip to Content

MARITIME: Cyprus ship management earnings drop in 2H 2015

by April 29, 2016 General

Research Center

Cyprus Economy

29 April, 2016

Revenues from the shipmanagement sector dropped marginally in the second half of 2015 to €462 mln, down €2 mln or 0.43% from the first half, according to the Central Bank of Cyprus data.

Shipmanagement revenues as a turnover amounted to 5.2% of Cyprus’ GDP, which added to ship-ownership fees and other revenues rises to 7% of GDP.
Transport Minister Marios Demetriades recently stated that the maritime sector’s reform target is to make the public maritime services more efficient and raise the contribution to GDP to about 8.5%.
As regards shipmanagement, Germany by a long margin has the biggest both in terms of beneficial owner as well as payments with 46% (47% in H1 2015) and 41% (47% in H1 2015) respectively. Greece’s share rose to 8% from 6% in H1 2015, the Cyprus News Agency reported.
In terms of market share, Curacao is second with 8% followed by Marshal Islands, the US and Switzerland with 5% each. Greece, Singapore and Norway follow with 4% each.
A total of 49% of the revenues came from full management contracts (crew and technical management), whereas the share of crew management services fell to 38% compared with 41 in H1 2015. Technical management contracts attracted 13% of total revenue.
The industry’s expenses dropped to €411 mln in the second half of 2015, of which 62% concerned crew wages mostly paid to non-EU citizens, mainly from the Philippines and Ukraine. A total of 45% of the expenses were paid in Cyprus.