Interesting Remarks from SEEN about the Hellenic Coastal Shipping

By | 2021 Newsletter week 35 | No Comments

Last week, the Association of Hellenic Passenger Shipping Companies (SEEN) underlined some interesting points through a letter sent to the Hellenic Ministry of Shipping and Island Policy.

In brief:

  • There are pending issues, even from the summer of 2020, while the total unpaid amount to the Ferry Companies is estimated to exceed EUR 60 million.
  • Ferry Companies paid and still paying VAT liabilities (24%) for the above amount, despite the fact that they haven’t collected the agreed money yet.
  • The ferry operator’s forecasts for their financial results are not at all positive.
  • In the first half of 2021, passenger traffic, which accounts for 70% of Coastal Shipping revenue, was lower compared to 2020.
  • Ferry traffic in August 2021 is reduced by 42% compared to August 2019, while passenger traffic on the Adriatic lines -for the same period- is reduced by 41% as well.
  • Fuel prices are significantly increased -by 30%- in 2021, burdening further the ship’s operational cost by EUR 80 million.
  • Total losses for the years 2020/2021 are expected to exceed EUR 200 million.
  • From March 2020 to June 2021, ferry companies performed exemplary all the approved sailings, despite the fact that they were unprofitable.

Greek Ferry Operators Tell the Minister of Shipping that the Money is not Enough

By | 2020 Newsletter week 17 | No Comments

On April 16, the Hellenic Ministry of Shipping and Island Policy decided to subsidize the Greek Ferry Companies with EUR 15 million in order to compensate them for their losses due to Covid-19.

However, the Greek Ship-owners Association for Passenger Ships (SEEN) sent a letter to the Minister, explaining why these funds are not enough for the sector. They agreed that this is a positive measure, but they firmly disagreed with the procedure (bureaucratic and unnecessary) as well as the amount of compensation provided which does not cover the actual costs of their ships.

According to SEEN the necessary compensation based on the routes which are obliged to perform today, is estimated at EUR 15 million per month, when the Ministry’s decision to compensate them on a monthly basis with EUR 7 million (EUR 8 million less per month). SEEN also noted that in the period 21/3 to 30/4, the costs of their ships after the deduction of the revenues are estimated at EUR 20 million while the Ministry’s Decision provided only EUR 1.6 million for the same period.

For that reason, they emphasized on the need for immediate and substantial support of the Hellenic Coastal Shipping in order to avoid the collapse of the sector underlying that the problem affects the Adriatic service as well.

In view of the above they asked from the Minister to take sufficient and substantial measures in order to support the Hellenic Coastal Lines as well as the International lines (Adriatic Service):

  • Compensation of the active ships based on their real expenses (minus the income), as these have already been notified by the Ferry Companies
  • Compensate the ferries for the period from March 21 to the date of conclusion of the new Public Service contracts according to the Decision of April 16, 2020
  • Compensation of the inactive ferries according to their actual costs
  • Increase of the subsidies of the services that are executed today with Public Service Contracts
  • Compensate also the Adriatic Service, as the lines between Greece and Italy are of great importance for the import and export trade of the country, offering valuable services.