Cyprus’ ship registry in the first half of the year has shown an increase of ocean-going vessels for the first time in the last two years, due to adverse effects brought by geopolitical tensions affecting global shipping, Deputy Minister for Shipping Marina Hadjimanolis has said.

Speaking at the International Business Day organised by the Cyprus International Business Association Hadjimanolis cautioned that after the rise the geopolitical tensions due to the war in Ukraine and attacks to commercial shipping by the Houthi regime in the Red Sea, challenges may evolve and persist leading to turbulence this year.

Stating that maritime sector is an integral part of Cyprus's identity, the Deputy Minister added that the continuous upgrading and strengthening of the services provided by the Shipping Deputy Ministry is undoubtedly one of the main priorities that have been set from the beginning, when the Government of Nikos Christodoulides took over in March 2023.

She stressed that an increase of 5.5% has been achieved during the last 6 months in the fleet of Cyprus flagged seagoing vessels, after its two-year decline.

“The number of companies registered in the Cyprus Tonnage Tax System, have been increased by 14%, reaching 420 in number,” Hadjimanolis said. Cyprus is the largest ship-management centre in the EU and one of the largest in the world.

Furthermore, the Deputy Minister pointed out that the Advisory Committee on Competitiveness and Quality Enhancement of the Cyprus Flag and the Advisory Committee on Competitiveness of the Cyprus Maritime Cluster have been established, with the aim of continuously improving and enhancing the competitiveness of the Cyprus flag and Cyprus shipping, while the One-Stop Shipping Centre commenced its operations in November, aiming to provide quality service to all shipping companies, as well as companies whose activities are related to shipping and are based in Cyprus.

She also recalled that following a decision by the Council of Ministers, from January 2024, the annual tonnage tax for ships registered in the Register of Cyprus Ships will be reduced by up to 30% for each ship that demonstrates effective greenhouse gas emissions reduction measures.

This, Hadjimanolis said, ensures “that shipowners are rewarded for their efforts for decarbonization of the shipping sector.”

However, the Deputy Minister stressed that that “we find ourselves at a crucial juncture, witnessing the onset of a transformative era in the shipping industry, marked by complex challenges,” referring to a host of interrelated challenges, such as fuels and technology, digitalization and autonomous shipping combined with green financing.

“As a leading advocate for sustainable shipping, we believe that comprehensive and diverse measures are necessary at both global and regional levels to achieve emissions reduction targets and ensure a sustainable future for the industry,” Hadjimanolis concluded.