Cyprus’s ship management revenues increased to €516 million during the second half of 2021 (2021H2) or 4.2% of Cyprus’s GDP (as turnover), marking a steady recovery from the COVID-19 pandemic and the associated decline in economic activity observed during 2020, according to the Ship Management Survey, conducted by the Statistics Department of the Central Bank of Cyprus (CBC).

The survey notes that Germany’s contribution decreased from 45% in 2021H1 to 43% in 2021H2. An increase was recorded in the share contributions by Norway (7%), Switzerland (4%) and the UK (4%). In contrast, a decline was recorded for Singapore, Japan and the US.

During 2021H2, 37% of the companies managed to generate revenues in the range of €1 - €20 million each, while only 22% of the companies managed to generate revenues in the range of €20-€50 million.

During the second half of 2021, the top 32% of the companies accounted for 96% of the industry’s revenues. Similarly, the respective turning point in the previous period (2020H1) was at (32%, 95%).

The share of full management services dropped to 43% of the total amount of ship management revenues in 2021H2. Similarly, crew-management services dropped from 49% in 2021H1 to 43% of the revenues in 2021H2. Nevertheless, these contributions are close to the levels observed during the second half of 2019.

According to the survey, the choice of flag is a strategic decision in ship owning operations, particularly in the case of open registries that provide ship owners with considerable advantages in terms of the legal and regulatory framework surrounding ship operations. Unlike the previous period, the share of revenues collected from the provision of ship management services to ships carrying a foreign flag, increased to 93% of the total revenues in 2021H2 (it was 59% in 2021H1).

Ship management expenses increased further to €457 million in 2021H2 in line with the steady recovery in revenues.

Historically, the industry exhibits a relatively stable structure of expenses. The majority of these concern crew expenses, which accounted for 63% of the total amount in 2021H2. Most of these payments were directed to non-EU seafarers (46%). Administration expenses accounted for 12% and ship management expenses (e.g. spare parts, lubricants, dry-docking, etc.) for 25% of the total amount

The survey concentrates primarily on transactions between resident ship management companies and ship owning/shipping related entities.