“Germany remains the main source of revenue for the industry, with a stable share of 39%,” the bank supervisor said in its ship management survey issued twice a year on its website. “The share of revenues originating from Switzerland and Japan declined, but increased in the case of Russia and the Marshall Islands”.

Russia’s share in revenue rose in the first half of the year to 10% from 7% in the second half of 2016, the central bank said. Singapore’s share rose to 8% from 7% while that of the Marshall Islands rose to 4% from below 3%.

The share of both the Swiss and Japanese revenue fell to 5% and below 3% in the first half of 2017 from 7% and 3% in the second half of 2016 respectively, the supervisory authority said. Also, Greece’s share in overall revenue fell to 5% from 6%.

The share of revenue from the management of ships under Cypriot flag fell in the first six months of this year to 11% from 27% in the second half of last year, it said.

“Despite the current subdued growth in trade and the oversupply of vessels, several new developments in the industry point to signs of recovery and stabilisation of the declining trend in freight rates,” the central bank said.

These developments include alliances between some of the shipping sector’s top performers, an increase in ship scrapping which ultimately is expected to reduce the glut in vessels, accelerated growth in emerging economies and a recovery of capsize dry bulk carrier rates for coal and iron ore which usually precede increases in very large crude carrier rates, the central bank said. New anti-pollution standards adopted by the International Maritime Organisation which will go into force in 2020 have caused, on the other hand, “further uncertainty” in the shipping sector.

Source: Cyprus Mail