(www.MaritimeCyprus.com) The Central Bank of Cyprus has published the results of the Ship Management Survey for the first half of 2020.Â This Survey is conducted biannually and it was launched initially in March 2009 and covers residents of Cyprus who provide ship management services to ship owning companies registered both in Cyprus and abroad.
Cyprusâs ship management saw stable revenue in the first half of 2020, but there is concern about high levels of concentration.
About 25% of companies were generating revenue greater than â¬25 million, and another 11% earning more than â¬50 million, according to the Ship Management Survey released by the Central Bank of Cyprus.
But the sector remained highly concentrated in the first half of the year. The top 30% of the companies accounted for 94% of the industryâs revenues, although this represents a slight decrease from 97% in the first half of 2019. The survey notes that a small number of very large companies continue to dominate the sector, and control 12.5% of the total market share.
Germany also remained, by far, the most important source of revenue. Germanyâs contribution increased to 52% in the first half of the year.
There were also increases in the share of contributions by Greece at 9%, Singapore at 7%, and the Marshall Islands at 4%. In contrast, there was a decline in the share of revenues from Malta at 8%.
Full management services accounted for the lionâs share of revenue at 51%, while crew management services dropped slightly to 44%.
These are revenue figures for core ship management services (which encompass crew, technical and full management operations), and which accounted for 81% of the industryâs revenues during the period under review.
Total revenue for the sector fell to â¬484 million in the first half of the year â equal to 4.8% of Cyprus GDP â for the first half of the year. It represents a 7.5% decline from â¬523 million for the first half of 2019.
The relatively slight drop in revenue is accountable from the âsevere consequences from the Covid-19 restrictions. These affected the passenger ship segment of the industry much more than the merchant ship segment (containers, dry bulk carriers, tankers, LNG carriers),â according to the survey.
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Source: Cyprus Central Bank
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