Ship management revenue has continued to recover since pandemic

07:52 - 27 April 2023

Economy

Revenue from Cyprus’ ship management industry continued its upward trend in the second half of 2022, reaching €648m, up by 25.6% year on year. Throughout 2022, revenue from ship management amounted to €1.22b.

According to the Central Bank of Cyprus’ (CBC) ship management survey, the industry’s revenue in H1 of 2022 increased by 12.9% y-o-y, showing that ship management has continued to recover following the disruption of the Covid-19 pandemic.

“This is the fourth consecutive increase in the total revenues of the industry, since the recovery of global trade from the Covid-19 pandemic and the associated decline in economic activity,” the CBC said.

By country of payment, Germany remained the industry’s biggest market with a 41% share of total revenues for the second half of last year. Other notable contributors included Greece (16%), Malta (5%), Switzerland (5%), the USA (4%) and Singapore (4%), which is indicative of the industry’s globalised nature, said the CBC.

In terms of ship management services, crew management services made up for 49% followed by full management services with 47.1%, whereas technical management amounted to 3.9%.

Ship management expenses rose by 18.2% to €629m, compared with €532m in the first half of 2022, while the annual change amounted to 38%.

The majority of the industry’s spending, with a share of 64%, was channelled to crew expenses, followed by ship management expenses (e.g. spare parts, lubricants, dry-docking, etc.) with 31%, whereas 5% went towards administration expenses.

According to the report, 47% of crew expenses were directed to non-EU seafarers while 17% were EU crew earnings.

Ship management revenue has continued to recover since pandemic

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