Cyprus 'ship management revenues increased to € 516 million during the second half of 2021 (2021H2) or 4,2% of Cyprus' GDP (as turnover), signaling a steady recovery from the pandemic COVID-19 and the accompanying decline in economic activity observed during 2020.
This is reported in the Ship Management Survey for the second half of 2021, published on Friday by the Central Bank of Cyprus.
According to the research, the incomes of the branch are divided by country of payment. The contribution of Germany decreased from 45% in the first half of 2021 to 43% in the second half of 2021. The contribution of the shares of Norway (7%), Switzerland (4%) and the United Kingdom (4%) increased. On the other hand, Singapore, Japan and the United States of America showed a decrease.
During 2021H2, 37% of companies managed to generate revenues of € 1 - € 20 million each, while only 22% of companies managed to record revenues of € 20 - € 50 million
During the second half of 2021, 32% of hierarchically larger companies represented 96% of industry revenue. Similarly, the corresponding turning point in the previous period (2020H1) was (32%, 95%).
The share of full management services in 2021H2, decreased to 43% of the total amount of income. Similarly, crew management services decreased from 49% in the first half of 2021 to 43% of revenue in 2021H2. Nevertheless, these percentages are similar to the levels observed during the second half of 2019
It is stated that the choice of flag is a strategic decision regarding the work of shipowners, especially in the case of open registers that provide significant advantages over the legal and regulatory framework of the ship. In contrast to the previous period, the share of revenues resulting from the provision of ship management services to foreign-flagged ships increased to 93% of total revenues in the second half of 2021H2 (2021H1 was 59%).
Regarding the level of cross-border expenditure related to the activities of the ship management sector in Cyprus, it is reported that ship management expenditure increased to € 457 million in 2021H2.
Historically, the industry has a relatively stable spending structure. The majority of these concerns crew costs, which accounted for 63% of the total amount in the second half of 2021. Most of these payments concerned remuneration of seafarers of non-EU origin (46%). Administration costs represented 12% and ship management costs (eg spare parts, lubricants, tanking, etc.) 25% of the total amount.
The Ship Management Survey (EQS) is conducted by the Statistics Department of the Central Bank of Cyprus (CBC) and focuses primarily on the transactions of ship management companies of Cyprus residents with shipping companies as well as other legal entities with related shipping activities.