Shipping is an important pillar of the Greek economy, like the automotive industry in Germany or watchmaking in Switzerland, a McKinsey & Company study finds. According to the research, the sector's footprint on the Greek economy is valued at $14 billion, while contributing some 150,000 highly skilled and high-paying jobs to the wider maritime ecosystem and other important sectors of the domestic economy. In fact, it is estimated that Greek shipowners reinvest annually around $1.4 billion in other sectors of the Greek economy, such as real estate, energy, tourism or sports, while they also provide significant funds, estimated at over $400 million per year, for social solidarity activities.

Greece, which accounts for less than 0.3% of global GDP despite the small size of its economy, controls around 20% of the world's shipping industry, demonstrating its dominant role in the international shipping market, McKinsey notes. This disproportionate influence highlights the strategic importance of shipping for Greece, with the industry affecting one in 15 domestic private sector jobs.

NUMBERS

• Fleet: With more than 5,000 ships in the water, controlled by Greek shipowners, Greece leads the world in tankers carrying liquid and liquefied gas cargoes and ranks second in the world in dry bulk cargoes.
• Maritime Management Centre: Athens has established itself as a global ship management center, hosting over 750 management companies, of which over 100 manage more than 10 vessels. It is worth noting that in addition to the management companies, a broad cluster of related high-level services has been established.
• Jobs: Greek shipping, directly supporting 60,000 jobs in Greece and employing more than 200,000 seafarers serving in global waters, is a multi-level economic pillar. But its influence goes beyond the boundaries of the sector, as it supports a wide network of 90,000 additional jobs in various sectors of the Greek economy while boosting entrepreneurship and philanthropy.
• Energy Security. For example, 30% of the volume of LNG imported into Europe by sea in 2023 was carried by Greek-owned ships, while 40% of Europe's crude oil imports by sea were carried by Greek tankers.
• Global footprint: Over the past decade, Greek shipowners have invested more than $100 billion on new buildings in shipyards around the world.

POWERHOUSE

The success of the Greek shipping industry is due to a number of factors, such as the long tradition, technical expertise, and business acumen of Greek shipowners, and the strategic geographical location of Greece. These factors have allowed Greek shipowners to make decisions that respond to the prevailing market conditions and ensure uninterrupted maritime transport, even in challenging circumstances such as the period of the 2008 economic crisis, the COVID-19 period and the current period of intense geopolitical disturbances in our region.

The revenues of the Greek ocean shipping industry are almost entirely derived from its international activity, with an average estimated turnover ranging between $40 and $50 billion per year, depending on the prevailing market conditions. Cumulatively, it is the largest and most outward-looking economic sector in Greece, leaving behind sectors of activity such as transport, real estate and retail, whose revenues are mainly derived from the domestic market.

At the same time, with a strong presence in international financial markets, with more than 20 companies listed on foreign stock exchanges and a total market capitalization exceeding $9 billion, Greek shipping is proving its potential in the global arena.

INTERVENTIONS

In an ever-changing environment based on geopolitical dynamics, energy transition and digitalization, Greek shipping is called upon to evolve and adapt in order to maintain its leading position in the global arena and further enhance its contribution to the Greek economy. To this end, the McKinsey & Company study highlights a number of interventions that could contribute substantially not only to maintaining but also to further strengthening its position, increasing by $3-4 billion per year the domestic footprint of the sector, an increase of 20-30% compared to current levels.

More specifically:

• Upgrading Fleet Management Services: Strengthening the shipping cluster, penetrating new and emerging markets, forging strategic partnerships and alliances, and developing innovative governance and succession models.
• Strengthening Infrastructure: Consolidation of Greece as a key tanker hub in the Mediterranean, upgrading of Greek ports to transform them into supply chain hubs, incentives to make the Greek flag the first choice for Greek-owned fleets.
• Digital Transformation.
• Refragmenting Shipping: Promote the country as a leader in reducing carbon emissions through investments in innovative green technologies and sustainable practices, with the aim of achieving the targets set by the International Maritime Organization (IMO).
• Developing skilled human resources: Creation of a model maritime training center with an international reputation and recognition, aiming to increase the supply and absorption of Greeks in high-level positions in the sector.