Calmco Ltd

Revenues from Cyprus’ ship management industry reached €896 million in 2016, the Central Bank of Cyprus (CBC) has announced.

According to the ship management survey, revenues for the second half of 2016 amounted to €458 million, marking a slight increase compared with €438 million in the first half of 2016.

Compared with 2015, revenue declined by 3.24% or by €30 million in absolute numbers.

“Despite the overcapacity and weak demand conditions that continue to characterise most shipping markets, the ship management industry of Cyprus remains robust with a stable flow of revenues,” the CBC added.

The Cypriot ship management industry remains a global industry, in that 73% of the overall revenue comes from ships which are under foreign flags.

According to the CBC, Germany remains by far the industry’s largest market, accounting for 39% of the revenues, followed by Switzerland, Russia and Singapore, second by a large margin with 7%. Greece’s share amounted to 6%.

The industry’s expenses continued an upward trend reaching €455 million in the second half of 2016, compared with €429 million in the first half of the year.

Crew salaries accounted for 64% of total expenditure, of which 52% was allocated to non-EU nationals (mainly from the Philippines, Ukraine and Russia).

The remaining 19% concerned management expenses, while 17% concerned ship management expenses such as spare parts, lubricants and dry docking.