ATHENS: In its 2017 Annual Report, the Union of Greek Shipowners (UGS) reiterated that 2016 was another tough year for both the Greek economy and Greek shipping. Delays in notable improvements in the economic fundamentals of Greece coupled with a prevailing economic uncertainty effected a gloomy environment for investments in the country. The capital controls have had a disastrous impact on the foreign exchange account balance and especially the foreign exchange earnings from shipping since July 2015 when they were first imposed. The first half of 2016, receipts in the Services Balance of Payments that come from maritime transport services were €3.60 billion, a decrease of 42.42%, compared to the same period in 2015, which was €6.42 billion.
The Greek flagged fleet ranks seventh internationally and second in the EU (in terms of dwt). Moreover, Greek owners control 27.76% of the world crude oil tanker fleet, 21.53% of the world dry bulk carrier fleet and 15.94% of the world chemical and products tanker fleet.
The Greek flagged fleet ranks seventh internationally and second in the EU (in terms of dwt). Moreover, Greek owners control 27.76% of the world crude oil tanker fleet, 21.53% of the world dry bulk carrier fleet and 15.94% of the world chemical and products tanker fleet
“Global growth is projected to be 3.4% in 2017 with expected increased economic activity in emerging market and developing economies11 and expanded seaborne trade volumes, while there are also positive developments to the supply side fundamentals with high levels of demolition – also in view of upcoming regulatory requirements – beginning to have a sizeable impact. Indeed, positive developments in the freight rate market have already been noted with the Baltic Dry Index recording in March 2017 a 29% increase from the start of the year, representing a 324% increase from its record low in February 2016. Any recovery, however, will remain fragile subject to a number of factors: the volatility of the geopolitical environment, potential trade disruptions and obstruction of trade lanes due to regional power, rising protectionism and risk of consequent trade wars, rising regionalism, especially with regard to environmental issues and risk of adoption of unrealistic and ineffective regulations, contracting bank financing and increased cost of lending. In light of the above, the Greek shipping community, which comprises mainly small and medium-sized private companies and embodies the true spirit of entrepreneurship, firmly supports the existence of free trade and access to markets and of an efficient international regime for a vital international industry, such as shipping. Representing the biggest crosstrading fleet in the world, the Greek fleet has a strategic role in the transportation of the trade and energy of many regions in the world, and of the EU, which relies on international shipping for 75% of its external trade and of which it is an integral part”, UGS concluded.
