Tide Turns in Favor of Greece’s Shipping Industry
An article in WSJ highlighted the Greek shipping industry, which it says has "emerged largely unscathed" from the nation's recent financial troubles.
The reports say that shipping companies in Greece are buying
vessels from cash-strapped competitors and German banks, and are
poised to grab even more market share - but bailout-related tax
hikes could lead shipowners to seek cheaper waters.
Greek owners, who operate almost a fifth of the global fleet of
merchant ships, are paying rock-bottom prices for competitors'
vessels. Shipping employs more than 200,000 people in Greece and
contributes around 7.5% of Greece's gross domestic product.
The industry is dominated by a small circle of family-run
companies that control almost a fifth of the world's shipping
fleet-long a source of national pride.
According to Basil Karatzas, a New York-based maritime adviser,
as the global financial crisis took hold and the freight market
gradually collapsed, the Greeks stayed above water as they were
not overly leveraged and stood on cash generated during the boom
years before 2008.
The Greek-German maritime competition recently has taken on
political overtones, as Athens is trying to secure a third
bailout package from its international creditors to avoid a
default on its debts that might force it to exit the eurozone.
Aug 11, 2015