MARITIME: Cyprus ship management earnings drop in 2H 2015
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.