- Greece holds a disproportionate share of global shipping capacity, with over 5,000 vessels and 20% of global deadweight tonnage.
- Despite a small GDP share, Greece’s maritime sector generates substantial revenue and employment, including $40 billion in annual gross revenues and 150,000 jobs.
- Key success factors include a deep maritime tradition, collaborative community, adaptive business models, and entrepreneurial risk-taking.
Greece’s influence on the global maritime industry is remarkable, given its relatively small size. The Greek merchant fleet, comprising more than 5,000 vessels, positions Greece as the largest shipowning nation. The sector, encompassing Greek-owned and Greek-managed ships, accounts for 20% of the global deadweight tonnage, reports Mckinsey.
Global Shipping
This dominance is striking compared to Greece’s GDP, which represents less than 0.5% of the global total. The country’s shipping prowess resembles Switzerland’s role in watchmaking and Germany’s in luxury automobiles. Shipping is vital to the global economy, with 90% of goods transported by sea, making Greece’s maritime sector crucial to global trade. Domestically, it is Greece’s largest economic sector by global revenue, accounting for about 6% of private employment and generating substantial income from abroad.
Greek shipping generates approximately $40 billion annually, with over 20 Greek companies listed in foreign markets and a market capitalization exceeding $9 billion. More than 200,000 foreign seafarers work on Greek vessels, and the sector includes over 750 ship management companies. Greece controls the world’s largest fleets of tankers and liquefied natural gas and is the second-largest in dry bulk and liquefied petroleum gas fleets. Greek tankers transport around 40% of Europe’s imported crude oil.
The Greek shipping sector contributes around $14 billion to the domestic economy and supports about 150,000 jobs. The sector’s success is rooted in several factors:
- A Century-Old Maritime Tradition: Greece’s deep maritime history, particularly post-World War II, laid the foundation for a skilled maritime workforce. Government support, such as Law 89/1967, facilitated growth by offering tax benefits to foreign companies setting up in Greece.
- Collaborative Community: The Greek maritime industry operates within a well-coordinated ecosystem. Family-owned shipping companies often collaborate, sharing data and resources, and participating in procurement alliances to optimize costs. Industry bodies like the Union of Greek Shipowners (UGS) play a significant role in promoting a competitive business environment and adherence to global regulations.
- Adaptive Business Models: Greek shipping companies are known for their flexible business models. Many operate in the tramp/commodity trade, allowing them to adapt quickly to market opportunities. In-house technical and crewing management further enhances operational efficiency.
- Entrepreneurial Investments: Greek shipowners exhibit an entrepreneurial spirit, investing in ships even during economic downturns. This willingness to take risks and reinvest earnings has led Greece to rank third globally in the order book for bulk carriers and tankers.
- Speed of Decision-Making: Greek shipping companies often have leaders who are both owners and CEOs. This dual role allows for rapid decision-making and flexibility, minimizing bureaucratic delays and enabling swift responses to market changes.
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Source: Mckinsey
