The shipping industry’s revenues declined by 3% during the first half of 2016, closing at €438 million. Expressed as turnover (not value added), this corresponds to 5.2% of Cyprus’ GDP, which also declined during the same period. Even though Germany’s share in revenues declined further, when compared with the previous 6-month period, it continuesto remain the most important source of revenue for the industry. Other notable countries include Switzerland, Greece, Singapore and Russia.

The global shipping industry is currently facing a downturn with weak demand conditions. This is particularly true for container shipping and cargo transport (bulk shipping in particular). As a result, freight rates slumped at levels close to operating costs. Several factors are responsible for the current economic climate in the industry, most notably the excess supply of ships during the previous years. Despite these developments, Cyprus’ ship management industry remains internationally diversified and robust.

Only 36% of the companies managed to generate revenues in excess of €7 million and only 11% managed to exceed the €35 million threshold. As noted, there is a decline in the revenues of the shipping industry globally, which is mainly associated with vessel overcapacity, low freight rates and the slowdown in global trade. As a consequence, average turnover declined in most shipping operations.

Source: InCyprus