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Important Increase in Ship Management Revenues

The latest biannual Ship Management Survey released on 19 November 2015, by the Central Bank of Cyprus, displayed a considerable increase in respect of ship management revenues, during the first half of 2015. The survey, initially launched in 2009, covers residents of Cyprus who provide ship management services to shipowning companies registered either locally or abroad.

The total revenues for the period increased to €464 million, now corresponding to 5,4% of Cyprus’s GDP, being the highest reported since 2010, with Germany, despite a declination of share to 44%, remaining the leader in terms of overall revenue provision.

 A similar trend is demonstrated by Vietnam, Russia and the Marshall Islands, while Singapore has increased its share and Greece has gained a substantial share in the list of revenue contributing countries.

45% of the companies managed to generate revenues in excess of €5 million, while 9% of the companies managed to exceed the €30 million threshold.

Ship management Services:

Core ship management services, including crew, technical and full management, account for 71% of the industry’s revenues.

The share of crew management services increased marginally reaching 41%, while the share of full management contracts, comprising technical and crew management services, remained stable at 44%.

Companies managing between 1-3 ships accounted for 24% of the total population of ship management companies, companies managing between 4-10 ships accounted for 41%, companies managing between 11-40 ships, during the first half of 2015, accounted for 24% and lastly, higher numbers of ships were managed by only 11% of the companies, which accounted for 57% of the total revenues.

Ship Management expenses and fees

The level of cross-border expenses associated with the operations of the ship management industry has increased to a total of €428 million for the first half of 2015, corresponding to the 5% of the country’s GDP.

Crew expenses accounted for 66% of the total amount (51% non-EU crew and 15% EU crew), administration expenses to 18% and ship management expenses to 16%.

Since 2013, a substantial increase has been noted with respect to the transport volume departing from Cyprus, suggesting a possible increase in merchanting and other shipping related services.