Greek Shipowners Still Rule World’s Waves But Restructuring Strategically
Greek Shipping Sector Adapts Amid Global Challenges
Despite facing increasing competition from China, Greece’s shipping industry continues to hold a prominent position globally, according to a recent survey by Petrofin Research. The 2024 report highlights a year of strategic restructuring within the sector, as the number of Greek-controlled shipping companies has decreased. Smaller firms are particularly struggling, while larger companies are expanding their fleets to maintain dominance.
Shifts in Fleet Composition and Company Numbers
The Petrofin Research survey reveals that the number of Greek-controlled shipping companies has dropped to 588 from 592 in the previous year. This decline is primarily attributed to smaller companies, particularly those operating one or two vessels, which have seen a significant reduction in their Dead Weight Tonnage (DWT) by 24.9%. Such a decrease raises concerns about the long-term sustainability of these smaller entities within the competitive shipping landscape.
In contrast, larger shipping companies, those with fleets exceeding 25 vessels, have experienced growth of 5.16%, now representing nearly 69% of the total Greek-controlled fleet. This trend indicates a consolidation within the industry, as larger firms capitalize on economies of scale. The report also highlights that dry bulk carriers remain the dominant vessel type, with 2,921 ships and a year-on-year increase of 128 vessels, reflecting a 4% growth in DWT. The tanker fleet has also expanded, adding 24 vessels for a total of 1,004, while the number of containerships has remained stable at 489. Notably, the top 10 Greek shipowners have significantly increased their market presence, boasting a remarkable 63.5% growth in DWT.
UMAS evolves to better serve the shipping sector’s decarbonisation needs
Global Trends and Future Outlook
The average annual growth of the Greek fleet has been limited to 4% from 2020 to 2024, a stark contrast to the 7% growth seen in the previous decade. This slowdown can be attributed to various global factors, including geopolitical tensions, economic uncertainties, and stricter emissions regulations. Events such as the conflict in Ukraine, instability in the Middle East, and ongoing trade disputes have all contributed to a challenging environment for shipping.
Despite these hurdles, Greece remains a leader in orders for eco-friendly ships, although only 3% of the current order book consists of purely green designs. The majority of new orders are for conventional vessels equipped with scrubbers. Shipowners are exhibiting a cautious approach as they navigate these turbulent times, with many opting for a wait-and-see strategy as they plan for 2025. The report underscores the need for the Greek shipping sector to adapt and innovate in response to both domestic and international challenges.
