Newsroom
Revenue from Cyprus' ship management industry rose by 2.4% in the second half of 2023, despite facing significant global challenges such as rising freight costs and geopolitical tensions, including disruptions in the Red Sea by Houthi forces.
According to the bi-annual Ship Management Survey conducted by the Central Bank of Cyprus (CBC), the sector's revenue increased to €639 million, up from €623 million in the previous quarter, representing 4.1% of Cyprus’ six-month GDP. For the entire year of 2023, revenue from ship management reached €1.26 billion, accounting for 4.23% of the country’s annual GDP.
“Despite a number of challenges for the shipping sector globally, such as the rising cost of transport, the ship management industry remains a robust performer for the Cyprus economy,” the CBC stated.
Key market partners and revenue distribution
Germany remains the leading partner in the Cyprus ship management industry, contributing 40% of the revenue in the second half of 2023, maintaining stability compared to the first half of the year. Greece followed with 17% of the revenue, Switzerland with 10%, and Malta with 5%. Contributions from the USA and Norway saw decreases compared to the previous quarter.
The survey also revealed diverse revenue scales among companies:
- 31% of companies generated revenues between €2 million and €30 million each.
- 27% of companies showed revenues exceeding €30 million each.
- 19% of companies generated revenues between €30 million and €100 million.
- 15% generated revenues up to €300,000.
- 8% were larger companies generating revenue in excess of €100 million.
Expenditure and revenue structure
The revenue structure remained broadly stable since the first half of 2022. Crew management services increased to 51.1% of total revenue, while full ship management's share dropped to 46% from 48.6% in the first half of 2023.
The CBC reported a decline in ship management expenditure to €546 million in the second half of 2023, contrasting with an increase recorded in the second half of 2022. The cost structure of the sector has remained traditionally stable. Crew expenses constituted 65% of the total amount in the second half of 2023, with most payments directed to non-EU seafarers, accounting for 45% of total payments.
Administrative expenses rose to 7%, and ship management expenses, such as spare parts, lubricants, and dry-docking, increased to 28% of the total amount in the second half of 2023.
Despite global shipping sector challenges, Cyprus' ship management industry continues to demonstrate resilience and significant contributions to the national economy, according to the CBC survey.
[Information sourced from CNA]
