ICAP: Greece’s Passenger Shipping Market Shrinking

Greece’s passenger shipping market is lagging behind, according to the latest research findings released by the Economic Research & Sectorial Studies department of consultants ICAP Group.

The study, which examines domestic coastal shipping, the Greece-Italy route and ferry services, found that Greece’s passenger shipping market has decreased in size by 32 percent in the last seven years, suffering losses to the tune of 7.8 million passengers and 2.9 million vehicles in the 2008-2014 period.

Passenger traffic on domestic coastal lines dropped by 22.5 percent, the Greece-Italy route marked a 34 percent decline, while ferry services shrunk by 15 percent.

The total market size (value) of Greece’s passenger shipping sector fell by 32 percent in 2015 compared to 2008, said Stamatina Pantelaiou, director of ICAP’s Economic Research & Sectorial Studies department, adding that ferry services posted a slight 1 percent increase in 2015 against 2014, and a 2 percent rise for domestic coastal lines, with the Greece-Italy route meanwhile, dropping by 5 percent.

The report concluded that reduced fuel costs, increased state subsidies and expansion into overseas markets are opportunities for the sector, with the continuing economic crisis, lack of liquidity and the development of air transport impacting the sector.