Cyprus shipping further strengthened its position as one of the island’s most important economic sectors in 2025, contributing around 7 per cent of GDP, approximately €1.9 billion, according to the Cyprus Shipping Chamber’s (CSC) annual report. 

The sector, which operates without direct state investment, continued to support the wider economy while reinforcing the international standing of the Cyprus flag, which remains recognised for its reliability and prestige. 

At the same time, Cyprus maintained the fifth largest merchant fleet in Europe and the fourteenth largest worldwide, while controlling more than 4 per cent of the global fleet. 

The island also remained one of the world’s leading shipmanagement centres, with Cyprus-based companies carrying out more than 20 per cent of global third-party shipmanagement activity. 

President Nikos Christodoulides said Cyprus shipping had moved beyond being only an economic activity, describing it as a strategic national asset. 

“Cyprus shipping is not merely an economic sector, it is a pillar of our international identity and a strategic asset for our country,” he said. 

He added that the sea had always acted as Cyprus’ bridge to the world, shaping the island’s identity and role as a maritime nation. 

Since its establishment in 1989, the CSC has grown from 17 founding members to 199 shipowning, shipmanagement and shipping-related companies. 

In 2025, the chamber welcomed 12 new members, ending the year with 46 domestic members, one international member, 119 domestic associate members and 33 international associate members. 

The wider shipping sector in Cyprus collectively employs around 9,000 people ashore, while more than 80,000 seafarers serve on vessels owned, controlled or managed by chamber members. 

Meanwhile, the number of vessels owned, managed or operated by chamber members reached approximately 2,900 ocean-going ships, with a combined tonnage of 161 million gross tonnes. 

CSC president Andreas Neophytou said the sector’s performance in 2025 was particularly encouraging, with shipping continuing to act as a cornerstone of the national economy. 

He said the Cyprus ship register had recorded an increase of 23 per cent over the past two and a half years, while the contribution of the shipmanagement sector to the national economy had grown by 17 per cent within the past year alone. 

This, he said, translated into approximately €2 billion in foreign income for Cyprus. 

“These results would not have been possible without a resilient shipping sector and the solid commitment of the Chamber’s Members, who continue to demonstrate their strong vote of confidence in Cyprus shipping,” Neophytou said. 

The report also showed that Cyprus’ shipmanagement revenues rose to €978m in the first half of 2025, corresponding to 5.5 per cent of Cyprus’ semi-annual GDP as turnover. 

This exceeded the €950m mark and remained considerably higher than the average revenues recorded between 2019 and 2021, reflecting the continued strength of the sector. 

House president Annita Demetriou said shipping remained one of the country’s most important strategic sectors, despite the pressures facing the wider maritime industry. 

“Shipping has long been a strategic asset for the Republic of Cyprus,” she said. 

She added that the sector continued to demonstrate stability and growth despite geopolitical tensions, the green transition, complex regulation, technological challenges and a volatile global economy. 

According to Demetriou, the chamber and the wider shipping community had contributed decisively to safeguarding the competitiveness of Cyprus shipping and promoting national interests abroad. 

She also referred to Cyprus’ re-election to the Council of the International Maritime Organisation (IMO) for the 2026-2027 term, saying it strengthened the country’s ability to influence international maritime policymaking. 

At the same time, she said the election of a Cypriot expert as Vice-Chair of the IMO Legal Committee was a further indication of the professionalism and expertise found within the maritime sector. 

Shipping Deputy Minister Marina Hadjimanolis said Cyprus shipping had met the pressures of the past year with ambition, professionalism and agility. 

She said the Cyprus Ship Registry had expanded considerably, reaching the highest gross tonnage recorded in the last three decades. 

“The Tonnage Tax System continues to attract new companies, fostering investment and reinforcing the competitiveness of our maritime cluster,” Hadjimanolis said. 

She also said Cyprus’ shipmanagement sector remained the largest in Europe and one of the largest globally, while continuing to contribute significantly to the national economy. 

Hadjimanolis said the digital transformation of the Shipping Deputy Ministry’s services was progressing, with the launch of the first digital services marking an important step towards modernising administrative procedures. 

The report also said the full operation of the specialised One-Stop-Shipping Centre remains a key objective, as it would simplify procedures and give the industry a single point of contact. 

This, the chamber said, would further improve the competitiveness of the Cyprus maritime cluster and strengthen the island’s position as an international shipping hub. 

The chamber was also active in policy issues affecting the sector, including the implementation of the Cyprus Shipping Company with Limited Liability framework. 

This new legal structure is expected to allow Cyprus shipping companies to be incorporated under a specialised register supervised by the Shipping Deputy Ministry, strengthening the Cyprus flag and streamlining administrative procedures for shipowning companies. 

At the same time, the chamber followed developments linked to the OECD Pillar II rules, stressing that it was particularly important for the specialised Cyprus tonnage tax system to remain unaffected. 

On tax reform, the chamber said it had submitted two shipping-related requests and noted that the Stamp Duty Law was repealed. 

It also said it had received assurances from the Tax Commissioner that the current practice linked to the 90-day rule would not be affected. 

Foreign direct investment screening was another area of focus. The chamber said it had submitted recommendations to the Finance Ministry to ensure that the new framework reflects the realities of maritime investment. 

In particular, it proposed that foreign direct investment relating to vessels, whether involving construction or sale and purchase, should be excluded from the scope of the law. 

This proposal was accepted, helping ensure that Cyprus maintains its credibility as a competitive investment hub without undermining the growth of the shipping sector. 

Beyond domestic policy, the report made clear that 2025 was also a year of considerable pressure for global shipping. 

Geopolitical instability, regional tensions and targeted attacks on merchant ships continued to raise serious security concerns, particularly in the Red Sea and the Bab el-Mandeb Strait. 

The chamber said the protection of seafarers and vessels operating in high-risk areas remained a priority, adding that further action by international bodies, including the United Nations and the European Union, was necessary to safeguard freedom of navigation. 

Neophytou said the industry continued to operate in an environment of profound transformation, particularly because of the drive to decarbonise shipping. 

During 2025, he said, global efforts to decarbonise shipping, while essential, presented one of the most complex challenges the industry had ever faced. 

“It requires realistic timelines, technological innovation, massive investment, availability of alternative fuels and above all, global regulatory alignment to ensure a level playing field,” he said. 

For this reason, the chamber said it continued to support practical and internationally coordinated solutions which protect both environmental progress and the competitiveness of European and Cyprus shipping. 

The report also referred to the EU Emissions Trading System, which entered into force for shipping in 2024 and is being gradually implemented. 

According to the chamber, its effects are already being felt through higher operating costs, operational adjustments, greater focus on fuel efficiency and accelerated investment in decarbonisation technologies. 

However, the chamber said shipping cannot carry the transition alone. 

It said coordinated action is needed from shipping companies, fuel suppliers, technology providers, financial institutions and regulators, particularly if the sector is to scale up the use of low and zero-emission technologies. 

The chamber also stressed that revenues generated from shipping under the EU ETS should be reinvested in the maritime sector. 

It said dedicated funding should support shipping’s energy transition, help narrow the cost gap between conventional marine fuels and sustainable alternatives, and make funding more accessible to small and medium-sized companies. 

The report also referred to the FuelEU Maritime Regulation, which came into effect on January 1, 2025. 

The regulation sets limits on the greenhouse gas intensity of energy used on board ships calling at EU ports and introduces obligations linked to onshore power supply or zero-emission technology. 

Although the chamber welcomed the objective of cleaner fuels, it said the transition must be realistic, particularly when low-carbon and zero-carbon fuels are still not available globally in sufficient quantities or at competitive prices. 

The chamber also warned that FuelEU places obligations on ships but does not impose equivalent responsibility on fuel suppliers. 

This, it said, creates an imbalance, as ship operators depend on suppliers for the availability and pricing of cleaner fuels. 

Training and human capital were also among the main issues in the report. 

The chamber referred to the ongoing review of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, which aims to adapt global standards for seafarer training to new trends and challenges. 

The first phase of the review has been completed, with more than 400 gaps identified, while the second phase is expected to begin in 2026. 

The report said the energy transition will require seafarers to operate ships using new fuels and technologies, each with different safety risks and training needs. 

Sanctions and trade barriers were also presented as growing challenges for the sector. 

The chamber said the EU sanctions framework had become increasingly complex, creating significant compliance obligations for shipping companies, especially because of the international nature of their operations. 

Trade protectionism also disrupted established trade routes, created volatility in shipping demand and increased operational costs. 

The chamber said shipping relies on open market access, the removal of restrictive trade barriers and a level playing field, adding that it would continue to work with international and European shipping partners against protectionist measures. 

On the social side, the chamber continued to deal with seafarer employment protection and collective bargaining. 

During the second half of 2025, the chamber, together with trade union Sek and the Cyprus Worker’s Federation (PEO), began the renewal process for the Cyprus Collective Bargaining Agreement for seafarers employed on Cyprus-flagged ships. 

The agreement was signed on December 15, 2025, with the Cyprus employers and industrialists federation (Oev) also co-signing it. 

The new agreement will run for three years, from January 1, 2026, to December 31, 2028, and aligns with the recently agreed ILO minimum wage for able seafarers and international labour standards. 

The chamber also continued its corporate social responsibility work under the Cyprus Shipping Cares identity. 

Its annual charity beach volleyball tournament raised €20,000 for the One Dream One Wish association, which supports children with cancer and their families. 

Through the years, the chamber has donated more than €300,000 to the association. 

It also organised two blood donation drives in 2025, with its blood donation activities having collected more than 3,500 blood units since they began. 

According to the report, this long-running contribution has potentially helped the treatment and recovery of up to 10,000 people in Cyprus, depending on how the blood and its components were used. 

Education remained another priority. The chamber’s Adopt a Ship programme completed another successful year, with 110 vessels participating during the 2024-2025 academic year. 

Since its launch in 2006, and with the support of CYMEPA, more than 25,000 children from 1,185 classes in 100 elementary schools have taken part. 

The chamber also delivered 24 presentations in 2025 at schools, academic institutions and career fairs across Cyprus, aiming to attract young people and qualified professionals to the maritime industry. 

Meanwhile, the Maritime Cyprus 2025 conference, held from October 6 to 8 under the theme “Unlocking the Future of Shipping”, was presented as one of the year’s most important events. 

The conference was organised by the Shipping Deputy Ministry in cooperation with the CSC and the Cyprus Union of Shipowners (CUS). 

Ahead of the official opening, the chamber held a cocktail reception at the Amathus Beach Hotel in Limassol, attracting more than 800 representatives. 

The event also included high-level discussions on disruption, global turbulence, shipmanagement, regulation and the future of shipping, as well as a maritime services exhibition with more than 30 exhibitors. 

The cruise sector was also among the priorities in 2025. Following the approval of the Cyprus Strategy on Cruise Tourism by the Council of Ministers in October 2024, the government moved ahead with a more structured process, including the recording of the current situation and the preparation of an action plan. 

The chamber participated in this process and in three committees covering infrastructure and connectivity, promotion and marketing, and tourism development and services. 

Limassol, in particular, strengthened its role as an important port of call in the Eastern Mediterranean, reflecting renewed confidence in maritime tourism and Cyprus’ strategic infrastructure. 

Looking ahead, Cyprus’ assumption of the Presidency of the Council of the European Union in 2026 is expected to give the island an opportunity to place shipping higher on the European agenda. 

Christodoulides said Cyprus recognised both the responsibility and the opportunity that come with the EU presidency. 

“Safeguarding the EU’s competitiveness, strengthening its strategic autonomy, and promoting a resilient and future-ready shipping industry will be among our key priorities,” he said. 

Demetriou also said the presidency would allow Cyprus to contribute to EU-level discussions on decarbonisation, competitiveness and maritime security, while further promoting the interests of the country’s shipping cluster on a European stage. 

Hadjimanolis said collaboration would remain central to the country’s maritime strategy. “By aligning public and private initiatives, we are building a maritime ecosystem that does more than respond to global changes, it shapes them,” she said. 

Neophytou also welcomed Cyprus’ EU Presidency, saying it places the country in a prominent position to influence the European maritime agenda at a critical time. 

He said the fact that shipping features among the Presidency’s priorities, including the advancement of the Ports and Maritime Industrial Strategy and the EU Maritime Security Strategy, creates an opportunity to promote policies that strengthen the resilience, sustainability and global competitiveness of the sector. 

Chamber director general Alexandros Josephides also said 2026 would be particularly important at European level. 

According to Josephides, Cyprus’ EU Presidency offers “a valuable opportunity to highlight the strategic importance of shipping for Europe’s economy, energy security and supply chain resilience”. 

He said this comes at a time when the European Commission has introduced major policy initiatives, including the European Industrial Maritime Strategy and the EU Ports Strategy. 

The European Industrial Maritime Strategy, he said, recognises the strategic role of shipping in Europe’s energy and supply chain security, while placing strong emphasis on investments in clean fuels, decarbonisation technologies and digitalisation. 

At the same time, the EU Ports Strategy aims to future-proof the European ports sector, strengthen competitiveness and promote more efficient and digital port operations and integrated logistics chains. 

With Cyprus operating one of the largest merchant fleets in the European Union and hosting the EU’s largest shipmanagement centre, Josephides said the chamber supports initiatives that reinforce Europe’s maritime leadership, safeguard competitiveness and encourage investments in green technologies and innovation across the industry. 

Despite geopolitical uncertainty, regulatory pressure and the energy transition, he said Cyprus shipping remains resilient. 

“The strength of the maritime cluster, the close cooperation between the public and private sectors and Cyprus’ strategic location at the crossroads of Europe, the Middle East and Asia provide a solid foundation for the sector’s continued growth,” Josephides concluded.