05 Jul 13 - 15:11
International shipping downturn has been long due to cargo reduction, tonnage overcapacity
The Union of Greek Shpowners has issued its Annual Report for 2012-2013 where there is an analysis of the greek shipping industry with regard to the severe economy of its national economy. The international shipping downturn has not only been deep but also long in its duration due to three major factors: the reduction of cargo volumes transported, the overcapacity of tonnage, and the inability of the credit system internationally to provide sustainable finance.
Theodore E Veniamis, Greek Shipowners Union President, states :
'' It is much too early to evaluate with any certainty the direction for the immediate future. Our main interest remains focused on the developing countries especially China and India, with the hope of a speedy recovery of international trade. In the face of these objective difficulties we have been called upon as entrepreneurs of the sea but also as Greek citizens to face these challenges with courage and faith in our abilities.
In respect of the shipping straits, as entrepreneurs we have all prerequisites to steer through safely and retain our leadership not only in numbers and size but also in the high quality of service. However, in view of rapid changes occurring in the global economy, Greek shipping is satisfied so far with the dynamic role that it continues to play in the international arena.
In June 2012 and for a whole week, the heart of the international shipping industry was beating in the Greek shipping capital due to the Posidonia International Exhibition, bringing once more to the fore the primacy of Greek shipping in global shipping developments as well as its strategic importance since it has the highest percentage of transportation capacity in the world.
At the same time, the Greek Government started the effort for the stabilization of the national economy. From the very beginning, the shipping community conveyed its support and declared its willingness to contribute to this effort. To this effect, the Greek shipping community has voluntarily offered to contribute over the next three years, for all vessels, under both Greek flag and foreign flags operated by shipping companies established in Greece, the double amount of tonnage tax a Greek ship would normally contribute. This initiative aims at enhancing the fiscal revenues over the next critical period. It is noteworthy that the state revenues have already been given a boosting due to the obligation, as of 2013, of vessels under foreign flag operated by companies established in Greece, to also pay an annual tonnage tax to Greece.
These developments are being implemented within the long established institutional legislative framework for shipping where shipping is recognised as a non-negotiable, historic national economic and strategic asset, which must remain internationally competitive. As highlighted in a recent study of the Greek Foundation for Economic and Industrial Research (IOBE), the existing contribution of Greek-owned shipping to the Greek economy is decisive but also its potential contribution is equally, if not more important."
You may read full Annual Report of Greek Shipowners Unions here
