Ship management revenues up in H1

Revenue from ship management showed a small increase in the first half of 2021, reflecting the recovery in global shipping after the disruption caused by the Covid pandemic.

According to the Central Bank’s ship management survey for the period between January and June 2021, revenues reached €447m, or 4.1 per cent of GDP, compared with €430m between July and December 2020.

The increase, marked “a gradual recovery from the Covid-19 pandemic and the associated decline in economic activity observed during 2020,” the CBC said.

In terms of country or origin, Germany remains Cyprus’ biggest market with a share of 45 per cent of total revenue, (compared with 42 per cent in the second half of 2020), followed by Greece, whose share rose to 13 per cent from 12 per cent in the second half of 2020.

On the other hand, Singapore, Malta and the Marshal Islands’ share marked a slight drop to  7 per cent, 3 per cent and 3 per cent respectively, compared with 9 per cent, 7 per cent, and 4 per cent in the second half of 2020.

According to data, the Cyprus ship management sector remains broadly international, as 59 per cent of revenue came from ships under foreign registries, while the rest was revenue from ships under the Cypriot flag, the CBC added.

Of the €447m of revenue, full ship management services declined slightly to 47 per cent, crew ship management rose to 49 per cent of total revenue while technical management remained steady at 3 per cent. According to the CBC, these shares are close to the levels observed in the second half of 2019.

Ship management expenditure rose to €425m in the fist half of 2021 compared with €416m in the second half of 2020, an increase of 2.2 per cent compared with the second half of 2020 and broadly stable (0.5 per cent) compared with the first half of 2020.

According to the CBC, 60 per cent of total spending concerned crew payments, of which 44 per cent to non-EU seafarers and 16 per cent in EU nationals.

Ship management expenditure (such as spare parts, lubricants and dry-docking) accounted for 27 per cent of spending, while 13 per cent of spending concerned administrative expenses.

Cyprus is considered the EU’s largest ship management centre and among the top  three globally.