2020 Cyprus Country Report

GROWING APPEAL
Cyprus has proven its consistent appeal as an
attractive international shipping hub with the
arrival of new shipping companies and businesses
offering shipping related services – underlining
the local industry’s enhanced competitiveness,
stability and growth opportunities. The
number of Cyprus-based companies has grown
by 33% over the last two years. A prime example
of this was the recent arrival of a new P&I Club,
Steamship Mutual Underwriting Association
(Europe) Limited, which has decided to underwrite
all of its European business through its
Cypriot entity. Also British shipping firm P&O
Ferries decided to register its English Channel
operating fleet under the Cyprus flag to take advantage
of the benefits and security it provides.
CORONA FACTOR
Global shipping was one of the first sectors hit
by the Coronavirus pandemic, as the majority of
world trade is done with China and other Asian
countries. Shipping companies were faced with
difficult challenges in crewing and crew changes,
approaching ports and implementing measures
Our ultimate goal is to
maintain and further
enhance the competitive
edge in shipping. In this
context we are working
towards the formulation of
a comprehensive long-term
national strategy for Cyprus
Shipping, with vision and
long-term objectives for
the next two decades. We
are also working on ways to
provide further incentives
to the shipping industry
in its effort to meet the
sustainability challenges
and to cope with green and
digital transformation of
the sector. Cyprus is an
established international
maritime centre. This
positive outlook in the
global shipping world
was a result of Cyprus’
strategic focus on shipping
as a key sector of the
economy. Providing top
quality services is our
highest priority and will
be enhanced further
through the continuous
updating, simplification
and modernization of
procedures. The unique
set of competitive
advantages together with
the excellent shipping
know-how, coupled with
the customer-oriented 24/7
service provided by the
Shipping Deputy Ministry
are the foundations of the
Cyprus maritime cluster
which will assist us to face
the current challenges.
Vassilios Demetriades
Shipping Deputy Minister
to minimise exposure. With around 90% of
global trade transported by commercial shipping,
which moves food, energy and raw materials,
as well as manufactured goods, components
and vital medical supplies, it is crucial to keep
supply chains going and the world’s ports open
for commercial ships.
The Cyprus shipping industry directly
employs up to 60,000 seafarers from around the
world and around 9,000 personnel onshore, more
than half of whom are Cypriot graduates, attracted
to the sector because of its professionalism
and high salaries. With such a large number
of crew on vessels facing the dangers
of the Covid-19 virus, Cyprus
also joined a global appeal to
G20 leaders to facilitate crew
changes and safeguard access
to healthcare for these ‘unseen
heroes’ and key workers of
world trade.
Although the financial
impact of the pandemic is
unavoidable, throughout this
crisis the Cyprus Shipping Deputy
Ministry (SDM) has remained fully operational,
providing high-quality services and 24/7 support
without any disruption to ensure all ships registered
under the Cyprus flag will continue to
operate in the most efficient way possible.
ESTABLISHED MARITIME HUB
A seafaring nation since antiquity, Cyprus began
building its modern shipping industry in the
early 1960s when it established its shipping registry
and introduced legislation providing ship
managers and owners with a competitive tax environment.
Among the country’s other evident
advantages are its strategic location at the crossroads
of maritime transport lines between East
and West, low operating costs, a highly educated,
multilingual workforce and its sophisticated professional
services industry. Cyprus is also signatory
to all major international maritime conventions
and has bilateral cooperation agreements
with 25 countries, among them leading suppliers
of labour. In 2019, Cyprus’ merchant fleet had
1,734 ships with 24.6 million gross tonnage, the
number of companies increased from 168 in 2017
to 220 in 2019, with the number of shipmanagement
operators rising to 50, placing Cyprus at the
top of this category in the EU.
The formidable Cyprus shipping industry
has flourished without any state investment, although
it enjoys strong state support. Cyprus’
two dynamic shipping associations – the Cyprus
Shipping Chamber (CSC) and the Cyprus Union
of Shipowners (CUS) – work closely with the
Sector Profile
Country Report CYPRUS 2020 117