The Impact of Greek-Owned Ocean-Going Shipping on Global and Domestic Economies
A recent study by McKinsey & Company, presented by Apostolos Zampelas (Partner and Leader of Shipping Practice at McKinsey) during the 9th Shipping Conference organized by “Naftemporiki,” emphasizes the significant role of Greek-owned shipping in both international and national economies.
The study references the Greek “paradox,” revealing that Greece, representing less than 0.3% of global GDP, controls around 20% of the world’s ocean-going shipping. This remarkable statistic underlines the nation’s critical position in the global maritime market. Shipping is essential to Greece’s economy, supporting one in every fifteen jobs in the domestic private sector, comparable to the automotive industry in Germany or the watchmaking sector in Switzerland.
Furthermore, the study identifies several potential interventions that could enhance Greece’s standing in global shipping, potentially generating an additional annual impact of $3-4 billion. Key areas for growth include expanding the pool of Greek seafarers, developing shipyards, and investing in maritime technology.
Strategically leveraging opportunities in the evolving global trade landscape and fostering partnerships will be crucial for promoting economies of scale, innovation, and transformational change.
Greece’s Role in the Global Shipping Industry
The study reveals that the European Union possesses approximately 32% of global shipping capacity, while only 10%-20% of global trade passes through European ports. Notably, nearly two-thirds of this capacity is owned or controlled by Greece, establishing the nation as a key player in maritime freight transportation.
The Greek fleet consists of over 5,000 vessels, ranking among the largest globally. Greek-owned tankers transport over 26% of Europe’s seaborne crude oil imports, constituting about 20% of global tanker capacity. Additionally, Greek ownership accounts for 21% of the global capacity of Liquefied Natural Gas (LNG) carriers, significantly contributing to Europe’s energy requirements.
Overall, Greek shipping commands nearly 20% of global capacity in ocean-going shipping, reflecting the sector’s expertise and foresight. Estimates place the total value of Greek shipping assets between $140-180 billion, with annual gross revenues ranging from $40-50 billion.
Globally, there are approximately 60,000 ocean-going vessels over 1,000 gross tonnage (GT) operated by over 11,000 companies involved in deep-sea shipping. The average asset value per vessel exceeds $1.1-1.3 million, with total annual revenues for the sector estimated between €400-450 billion.
Greek Shipping: A Cornerstone of the National Economy
Continuing to be a vital engine for the Greek economy, Greek shipping leaves an impactful mark both domestically and internationally. Recent data shows Greek-owned vessels account for a notable share of global “ton-miles,” which measures cargo weight and distance transported:
- 16% of global tanker ton-miles are transported by Greek ships.
- 16% of bulk carrier ton-miles are also managed by Greek owners.
- 27% of global LNG ton-miles are handled by Greek vessels.
This impressive global presence is crucial for the Greek economy, with about 15% of employment linked to shipping stemming from non-shipping-related activities, illustrating the extensive indirect benefits the sector provides.
Employment and Payroll Contributions
- 10% of total private-sector payroll in Greece is directly or indirectly tied to shipping.
- 6% of total private-sector employment comes from the shipping industry.
Jobs in shipping generally offer salaries that are three times higher than the national average. Specifically:
- The average annual salary for onshore shipping positions is approximately €55,000.
- For seafarers, it reaches about €65,000, making it one of the highest-paying sectors in the Greek labor market.
Employment Generated by the Sector
Direct employment includes:
- 20,000 jobs in ship management
- 17,000 Greek seafarers working on Greek-owned vessels
- 9,000 jobs in the broader maritime cluster (including agencies, legal and technical services, chartering, etc.)
In summary, Greek shipping stands as a global leader in tonnage and operational reach, serving as a strategic national asset while providing high-paying jobs, fostering investments, and generating extensive indirect benefits across various industries.
Social Contributions
Additionally, the study underscores the charitable efforts of Greek shipowners, who contribute substantial funds—estimated between $400-500 million annually—to social initiatives.
A significant fraction of these contributions is allocated to:
- Healthcare, with €100-120 million directed annually
- Education, receiving €50-60 million each year
These investments highlight the sector’s commitment to Greek society, underlining Greek shipping’s role not only as an economic powerhouse but also as a pillar of social responsibility.
