Greece’s coastal shipping sector will need a monthly cash injection of up 30 million euros to survive the repercussions of the coronavirus (Covid-19) pandemic, according to a study released this week by business consultants XRTC.
With the onset of the pandemic, ferry operators were forced to stop nearly 70 percent of all services as demand for transport dropped by 50 percent compared to the same period last year and revenue losses of up to 90 percent. At the same time, more than half of their fleet is inactive while operating costs continue to grow.
According to the findings, Greece’s coastal shipping sector will need liquidity injections that will cover immediate needs and support the operation of 30 to 35 percent of its active fleet: approximately 35 ships that are part of the “safety fleet” serving the islands.
XRTC analysts estimate that for the sector to remain above water it will need monthly financial support ranging from 22 million euros to 30 million euros for the duration of the Covid-19 emergency to cover inactive ships so that the running fleet can continue to provide the necessary services after the end of the crisis.
The report also referred to the 15-million-euro subsidy operators received earlier this week to support services due to Covid-19, posing questions with regard to duration and distribution of the funds.
The first measures announced to support the coastal shipping sector can be found here.