In July to December last year, revenue from ship management dropped 0.9%, the central bank said in its ship management survey, published twice a year on its website.

As a percentage of economic output, revenue from ship management remained unchanged at 5% in the second half of last year.

“Germany remains the main source of revenues for the industry with a total share of 39%,” the central bank said. “Other notable contributions -albeit much smaller- include Switzerland, Singapore, and Russia” with 7% each.

Amid “overcapacity and weak demand conditions” in the shipping industry, the Cypriot ship management sector remains “robust” and revenue stable, the central bank said, adding that the global shipping industry is undergoing structural changes that include consolidations, market exits, adjustment in freight rates and debt write-offs.

“These developments have initiated the painful process towards recovery, which is expected to benefit Cyprus’s ship management industry in the future,” it added.

The trend towards consolidation in the ship management sector also affected Cyprus with two of its largest players, Columbia Shipmanagement and Marlow Navigation, announcing their intention to merge six months ago. The merger is awaiting regulatory approval, Mark O’ Neil, chairman of Columbia said on Thursday.

According to the central bank, there are 38 ship management companies operating in Cyprus, with nine of them generating 86% of total revenue.

Source: Cyprus Mail