Features: - Tanker Operator

INDUSTRY - GREECE
Greeks return to
the market place to
reinvest in tonnage
At the time of writing in the middle of May, nobody knows what affect, if any,
the current Greek financial crisis would have on that country’s shipping industry,
which is the second most important to the country’s economy after tourism.
Will taxes be raised on the rich
and famous, such as has been
seen in the UK? Will the
financial world boycott the
Greek shipping community, or will they
become immune from the plight of the Euro?
Traditionally, the Greeks have not
particularly cared where they are domiciled
for business purposes – New York, London, or
elsewhere. However, the majority have
remained in Greece, but not necessarily in the
Athens/Piraeus area.
Last year, investment activity stalled
somewhat, but during the first half of this
year, new vessel ordering had picked up
slightly, spurred on by cheaper newbuilding
prices and the ability to pick up already
ordered tonnage at a discount, either buying
up postponed, or cancelled contracts, or by
taking advantage of newbuilding resales.
The Greeks have never been backward in
coming forward when an opportunity beckons.
By taking advantage of the current situation,
prudent Greek owners can renew and upgrade
their fleets at a reasonable price.
Indeed, several of the leading owners have
reinvested in both wet and drybulk vessels, but
have steered clear of containerships, except for
the odd purchase with a charter attached.
Fewer, but younger ships as a result of a
constant renewal process, is now the basic
characteristic of the Hellenic-owned fleet,
according to the Union of Greek Shipowners
(UGS), which held its annual meeting recently.
Speaking on behalf of the UGS, Theodore
Veniamis pointed out that the country’s
maritime industry is well used to rough seas
and can handle crises with experience and
wisdom, which meant that 2009 ended on a
positive note.
“Hellenic shipping proved very resilient,
thanks in part to the in-time and deep renewal
of the fleet, as a result of the euphoria of the
freight market in the previous years, as well as
the increased flow of bank financing. Still, the
shipping market’s volatility doesn’t justify
long term growth strategies” warned
Veniamis, adding that a forecast oversupply of
tonnage capacity is a main reason for concern.
He went on to provide details on the
country’s fleet, which was reduced by 165
units last year (figures as of February of 2010,
provided by IHS Fairplay), with a total
capacity of 5.43 mill dwt.
This meant that the total fleet (vessels over
1,000 gt) stood at 3,996 with a capacity of
258,121,989 dwt or 152,616,046 gt, including
826 newbuildings of 40,975,985 gt. The
country’s market share was 8% of the world
fleet in terms of numbers and 14.9% in terms
of deadweight tonnage, versus 8.2% and
15.2% respectively last year.
But, it must be taken into account that the
world fleet was also reduced by 802 units,
standing at a total of 49,705 ships (down from
50,507 last year), the UGS pointed out.
Lower age profile
Moreover, the average age of Greekcontrolled
vessels of 11.9 years in 2009 was
one year below the average age of the world
fleet which was 12.9 years. The age decrease
of the Greek owned fleet (from 20.3 years in
2000) reflects an unprecedented investment in
new vessels over the past few years.
As was widely expected, the UGS
commented on the abolition of the Ministry of
Mercantile Marine and Shipping by the new
government. This was decided in early
October and until recently, the UGS had
avoided making any official comment, leaving
June 2010 TANKEROperator 23