Impact of the economic crisis on maritime sectors
From Statistics Explained
Economic ebb and flow in maritime sectors
Statistics in focus 5/2013; Author: Isabelle COLLET
ISSN:2314-9647 Catalogue number:KS-SF-13-005-EN-N
Most EU maritime economic sectors suffered due to the economic crisis or following long-term trends. However, since 2009 some maritime sectors such as maritime transport and the seafood industry have started to recover.
Main statistical findings
Maritime transport was impacted by the economic crisis and the declining volume of sea transport reflecting the downturn of international trade. On the other hand, the maritime transport sector profited from the recovery of international trade since 2009.The seafood industry also saw a downturn followed by a recovery period despite the steady decreasing trend of EU catches. The impacts of the economic downturn were more diverse among the maritime industries such as building of ships, building of sporting boats or repairs and maintenance of boats.
This article aims to present economic data in the framework of the EU Integrated Maritime Policy, highlighting the impact of the crisis on the traditional maritime sectors.
Main features of the traditional maritime economic sectors in the EU
In 2010, of the firms active in the traditional maritime economic sectors in the EU, 22 977 enterprises were in maritime manufacturing sectors (also called the maritime industry), 28 273 enterprises were in maritime transport and related activities and 3 600 enterprises were active in the processing and preserving of fish, crustaceans and molluscs, as shown in table 1.
Among these three maritime sectors, the largest employer was the maritime transport and related activities employing 57 % of those working in these three sectors, followed by maritime manufacturing with 30 % and processing and preserving of fish with 13 %.
In 2010, maritime manufacturing sectors in the EU generated EUR 11 675 million of value added, of which 56 % came from the building of ships and floating structures. Maritime manufacturing is made up of three main sector activities: the building of ships and floating structures, the building of pleasure and sporting boats and the repair and maintenance of ships and boats.
Maritime transport and related activities comprise 4 sectors: sea and coastal passenger water transport, sea and coastal freight water transport, service activities incidental to water transport and cargo handling. In 2010, cargo handling was the main sector among these activities, generating a value added of EUR 11 850 million and employing 48 % those working in maritime transport and related activities.
The processing and preserving of fish, crustaceans and molluscs is categorised under maritime sectors due to the use of maritime resources in this industry. However this activity also uses freshwater resources. The processing and preserving of fish, crustaceans and molluscs in the EU generated a turnover of EUR 22 760 million and a value added of EUR 3 940 million in 2010, and employed 114 200 persons in 2009.
As Map 1 shows, in these main sectors, the enterprises housed in Italy, Germany, France, the United Kingdom and Spain were the main employers. In terms of distribution of employment by sector, the main countries for maritime transport were Italy where 30 % of the total EU employees in these sectors were employed, followed by Germany with 12 %.
Italian-based enterprises were also the main employers in the EU maritime manufacturing sector, employing 16 % of those working in these sectors in the EU as a whole, followed by enterprises based in the United Kingdom with 13 %.
As regards the processing and preserving of fish, crustaceans and molluscs in the EU, the main countries were Spain, with 17 % of the employed persons in the EU and Poland with 14 %.
Maritime manufacturing sectors
Maritime manufacturing sectors on the decline but repair and maintenance recovers
Between 2008 and 2011, the value of production in the maritime manufacturing sector as a whole decreased by 25 %, especially due to the economic crisis. The value of the production of the building of ships and floating structures and the building of pleasure and sporting boats followed the same trend, as shown in figure 1. However, the decline in the production and building of pleasure and sporting boats was more pronounced. In contrast, repair and maintenance followed a different trend, with the value of production in this sector decreasing steadily by 27 % between 2008 and 2010 and then increasing by 8 % between 2010 and 2011.
In most countries, the building of ships and floating structures was the largest sector among the maritime manufacturing sectors in terms of value added, as shown in figures 2 and 3.
In 2010, more than two thirds of the value added generated by the EU maritime manufacturing sectors came from five Member States: the United Kingdom, Italy, Germany, France and Spain. Norway led these sectors, accounting for EUR 2 629 million of value added.
In 2011, 50 % of production in the maritime manufacturing sectors in the EU was accounted for by the building of ships and floating structure, 27 % by the building of pleasure and sporting boats and 23 % by the repair and maintenance of ships and boats. At the more detailed level, the production of motor boats and motor yachts for pleasure or sports accounted for 18 % of EU maritime manufacturing production, the repairing of ships, boats and floating structures for 17 % and the production of cruise vessels for 16 %.
Maritime passengers and goods
Maritime passengers and goods concentrated in a few Member States
In 2010, 3.6 billion tonnes of goods were handled in EU maritime ports, of which 62 % were unloaded. With 538.7 million tonnes, the Netherlands had the highest share (14.8 %) of the goods handled in EU ports, followed by the United Kingdom (14.1 %), Italy (13.6 %) and Spain (10.3 %).
In 2010, around 395 million passengers passed through EU ports, split almost evenly between embarking and disembarking persons. Italy was the leading country with 87.7 million passengers or 22.2 % of all passengers at EU ports, followed closely by Greek ports at 20.2 %. Danish ports were in a distant third place, with 10.6 % of all passengers at EU ports.
Italy recorded high values for both maritime passengers and goods. The Netherlands, home to the most important port in the EU (Rotterdam), showed a clear concentration of the maritime transport of goods while Greek ports were predominately involved in the maritime transport of passengers. There was no significant correlation between the weight of goods handled and the number of passengers who embarked or disembarked by country or by ports. Actually, maritime ports have developed one or more independent types of traffic.
Between 2002 and 2008 the total gross weight of goods handled at EU ports increased from 3.3 to 3.9 billion tonnes. The trend was steady between 2002 and 2007 and slowed down between 2007 and 2008 due to the early effects of the crisis. Then, due to the crisis the total gross weight fell by 12 % between 2008 and 2009. Between 2009 and 2010 the trend was reversed again and the total gross weight increased from 3.4 to 3.6 billion tones. Between 2002 and 2010 inward and outward gross weight followed largely the same trend.
However, between 2007 and 2010, the crisis impacts were more significant on inward gross weight than on outward gross weight, as shown in figure 5.
Maritime transport passengers
Maritime transport passengers show a double dip over the past decade
Between 2002 and 2010 the number of maritime transport passengers at EU ports followed an irregular trend as shown in figure 6. Between 2002 and 2005 there was a fall in the total number of maritime transport passengers at EU ports from 421 million to 395 million. This fall is mainly explained by the opening and progressive use of new alternative routes such as the ‘Charilaos Trikoupis’ (EL) and ‘Great Belt’ (DK) bridges and the growth of low-cost flights.
Between 2005 and 2007, EU ports recorded an increase, from 395 to 414 million maritime transport passengers. Leading countries such as Greece and Denmark recovered from the previous period. Between 2007 and 2008, numbers of maritime transport passengers going through EU ports fell again, from 414 to 395 million, due to the crisis and more competition from alternative routes.
Sea transport mode dominates EU international trade
Sea transport mode dominates EU international trade especially in terms of volume and impacted maritime transport economic sector
Between 2000 and 2011 extra-EU trade (imports and exports) using sea transport followed the same pattern as extra-EU trade as a whole, as shown in figure 7. However, during this period the changes (increases and decreases) in extra-EU trade using sea transport were more pronounced. Between 2003 and 2008, extra-EU exports increased by an annual average of 10.6 % and total extra-EU imports by 8.7 % (annual average). During the same period, extra-EU exports using sea transport increased by an annual average of 11.1 % and total extra-EU import by 15.3 %. The crisis strongly affected extra-EU trade using sea transport, and especially imports. Between 2008 and 2009, extra-EU imports using sea transport fell sharply by 27 %, i.e. 5 percentage points more than total imports had fallen. Between 2009 and 2011 the recovery in extra-EU trade using sea transport was also more pronounced than the market overall; imports increased by an annual average of 24.8 % and exports by 20.1 %, compared with 17.9 % and 19.0 % respectively for total extra-EU imports and exports.
The proportion of extra-EU trade using sea transport is more significant in terms of volume than in value. In 2011, EU imports using sea transport accounted for 74 % of EU imports as a whole and EU exports using sea transport represented 77 % of all EU exports by volume. As figure 8 shows, there were wide disparities from country to country and by direction; for example, almost all Maltese extra-EU trade used sea transport but only 26 % of extra-EU imports to Poland used sea transport.
In 2011, the value of extra-EU trade using sea transport was EUR 741 billion for exports and EUR 953 billion for imports, i.e. a deficit of EUR 211 billion. Extra-EU trade using sea transport represented the major part of extra-EU trade as a whole. In 2011, total extra-EU imports accounted for EUR 1714 billion of which 56% used sea transport.
In the same period, total extra-EU exports accounted for EUR 1557 billion of which 48 % used sea transport. However, there were differences between countries; in 2011, only 14 % of Slovenian extra-EU exports used sea transport while at the other end of the scale the figure for Portugal was around 78 %, as shown in figure 9.
Sea food industry
EU production of the sea food industry increased while catches declined
In 2011, the main products of the EU processing industry were prepared or preserved tuna, skipjack and Atlantic bonito, whole or in pieces (12 %), fresh or chilled fish fillets and other fish meat without bones (11 %) and smoked Pacific, Atlantic and Danube salmon (9 %). Between 2008 and 2009 production fell by 4.5 %. Since 2009 the trend has reversed and production increased steadily by 8.2 % per year between 2009 and 2011, as figure 10 shows.
In 2010, around two thirds of the value added of processing and preserving of fish, crustaceans and molluscs was provided by enterprises based in Spain, the United Kingdom, France, Germany and Italy, as shown in figure 11. Norway led these sectors accounting for EUR 815 million of value added.
One of the inputs to the EU fish processing industry are EU catches. Of all the maritime sectors, the fisheries industry is certainly the most emblematic. In 2010, EU catches amounted to 4 943 780 tonnes, of which around 85 % were marine fish. Since 2001, EU catches have decreased steadily with the total and marine fish catches following the same trend.
Over the last couple of decades, the total engine power and capacity of the EU fleet have decreased regularly by around 2 % per year on average.
In 2009, output from EU aquaculture was 1 299 635 tonnes of which 76 % was produced in a marine water environment. In the same period, output from Norwegian aquaculture was 962 thousand tonnes, almost exclusively in marine areas. Output from Norwegian aquaculture is equal to 74 % of total EU aquaculture output.
In 2009, aquaculture produced in a marine water environment in the EU accounted for 993 thousand tonnes, representing around 20 % of the EU catch.
The largest part of this production came from Spain (25 %) followed by France (19 %) and the United Kingdom (18 %), with Italy and Greece producing 12 % each.
Since 2000, total and marine water aquaculture production followed an irregular trend but largely a similar pattern. However, between 2007 and 2009 marine water aquaculture production went up while total aquaculture production fell in 2008.
Data sources and availability
Building of ships and floating structures (NACE class 30.11): This class includes the building of ships, except vessels for sports or recreation, and the construction of floating structures.
Building of pleasure and sporting boats (NACE class 30.12): This class includes: manufacture of inflatable boats and rafts, building of sailboats with or without auxiliary motor, building of motor boats, building of recreationtype hovercraft, manufacture of personal watercraft, canoes, kayaks, rowing boats and skiffs.
Repair and maintenance of ships and boats (NACE class 33.15): This class includes the repair and maintenance of ships and boats. However, the factory rebuilding or overhaul of ships is classified in division 30.
50.10 Sea and coastal passenger water transport (NACE class 50.10): This class includes: transport of passengers overseas and coastal waters, the scheduled or unscheduled operation of excursions, cruises or sightseeing boats, operation of ferries, water taxis, etc. This class also includes: renting of pleasure boats with crew for sea and coastal water transport (e.g. for fishing cruises).
Sea and coastal freight water transport (NACE class 50.20): This group includes the transport of freight on vessels designed for operating on sea or coastal waters. Also included is the transport of freight on great lakes, etc. when similar types of vessels are used. This class includes: transport of freight overseas and coastal waters, whether scheduled or not, transport by towing or pushing of barges, oil rigs, etc. This class also includes: renting of vessels with crew for sea and coastal freight water transport.
Service activities incidental to water transportation (NACE class 52.22): This class includes: activities related to water transport of passengers, animals or freight, operation of terminal facilities such as harbours and piers, operation of waterway locks, etc., navigation, pilotage and berthing activities, lighterage, salvage activities and lighthouse activities.
Cargo handling (NACE class 52.24): This class includes: loading and unloading of goods or passengers’ luggage irrespective of the mode of transport used for transportation, stevedoring and the loading and unloading of freight railway cars.
Processing and preserving of fish, crustaceans and molluscs (NACE class 10.20): This class includes: preparation and preservation of fish, crustaceans and molluscs: freezing, deep-freezing, drying, cooking, smoking, salting, immersing in brine, canning, etc., production of fish, crustacean and mollusc products: fish fillets, roes, caviar, caviar substitutes, etc., production of fishmeal for human consumption or animal feed, production of meal and solubles from fish and other aquatic animals unfit for human consumption.
This class also includes: - activities of vessels engaged only in the processing and preserving of fish or the processing of seaweed.
Prodcom — Statistics by Product Prodcom provides statistics on the production of manufactured goods. The term comes from the French ‘PRODuction COMmunautaire’ (Community Production) for mining, quarrying and manufacturing: sections B and C of the Statistical Classification of Economy Activity in the European Union (NACE 2).
Prodcom uses the product codes specified on the Prodcom List, which contains about 3 900 different types of manufactured products. Products are identified by an 8-digit code: the first four digits are the classification of the producing enterprise given by the NACE and the first six correspond to the Classification of products by activity (CPA).
The content of this article is based on data collected within the framework of the EU Maritime Transport Statistics Directive, i.e. ‘Directive 2009/42 of the European Parliament and of the Council of 6 May 2009 on statistical returns in respect of carriage of goods and passengers by sea’ (OJ L141 of 6.6.2009, page 29), which is a recast of the original Council Directive 1995/64 of 8 December 1995. According to the Directive, ‘main ports’ are ports handling more than 1 million tonnes of goods or 200000 passengers annually. More data are to be collected for ‘main ports’ than for other ports. However, additional data may also be included by countries for smaller ports on a voluntary basis. Moreover, because of normal fluctuations in port activity, the thresholds are not automatically applied on a yearly basis to avoid breaks in the series.
Structural business statistics (SBS)
SBS cover industry, construction, trade and services. Presented according to the NACE activity classification, they describe the structure, conduct and performance of businesses across the European Union (EU) – data are available for the EU-27 and for the Member States.
The statistics can be broken down to a very detailed sectoral level (several hundred economic activities). A subset of the SBS information is also available for European regions, as well as according to the size of enterprises.
The main indicators within SBS are generally collected and presented as monetary values, or as counts (for example, numbers of enterprises or persons employed); this is in contrast to short-term business statistics, where the data are presented as indices (generally in relation to a base year of 2005=100).
Generally SBS does not collect information on products. The external trade and the production of specific products are covered by external trade statistics and/or PRODCOM.
An enterprise is the smallest combination of legally recognised units - constituting an organisational unit for producing goods or services; - benefiting from a certain degree of autonomy in decision making, especially for the allocation of its current resources.
It may be a sole legal unit and carries out one or more activities at one or more locations.
Value added at factor cost is the gross income from operating activities after adjusting for operating subsidies and indirect taxes. It is an indicator in the domain of structural business statistics.
It can be calculated as the total sum of items to be added (+) or subtracted (-):
- turnover (+);
- capitalised production (+);
- other operating income (+);
- increases (+) or decreases (-) of stocks;
- purchases of goods and services (-);
- other taxes on products which are linked to turnover but not deductible (-);
- duties and taxes linked to production (-).
The number of persons employed is defined, within the context of structural business statistics, as the total number of persons who work in the observation unit (inclusive of working proprietors, partners working regularly in the unit and unpaid family workers), as well as persons who work outside the unit who belong to it and are paid by it (e.g. sales representatives, delivery personnel, repair and maintenance teams). It excludes manpower supplied to the unit by other enterprises, persons carrying out repair and maintenance work in the enquiry unit (enterprise in this paper) on behalf of other enterprises, as well as those on compulsory military service.
International trade: Information on international trade is based on data available in Eurostat’s Comext database. Trade statistics track the value and quantity of goods traded between EU Member States (intra-EU trade) and between Member States and non-EU countries (extra-EU trade).They are the official source of information on imports, exports and trade balance of the EU, its Member States and the euro area.
Information on extra-EU and intra-EU trade is collected monthly by Member States. External trade data are subject to frequent revisions, as a consequence of errors, omissions or — particularly with the Intrastat system — late declarations by information providers. When data for the latest period are released, revised data for previous periods are also made available.
In the methodology for the statistics on the trading of goods, the mode of transport in the case of extra-EU trade is defined as the active means of transport by which: • for outwards flows (exports), goods are presumed to leave the statistical territory of the EU • for inwards flows (imports), goods are presumed to have entered the statistical territory of the EU.
Active means of transport is the means of transport that provides the motive power. If there are several means of transport, the active means of transport is the one which provides the motive power for the whole combination.
The modes of transport considered in the methodology for the statistics on the trading of goods are the following: Air, Fixed installation (including pipelines), Inland waterways, Post, Rail, Road, Sea, Selfpropulsion, Unknown.
Fishery and aquaculture Fishery statistics are derived from official national sources either directly by Eurostat or by the EEA member countries. The data are collected using internationally agreed concepts and definitions developed by the Coordinating Working Party on Fishery Statistics, comprising Eurostat and several other international organisations with responsibility for fishery statistics.
The domain ‘Fisheries’ contains data on catch by fishing region, on aquaculture production, on total production, on landings in EEA ports, on trade in fishery products and on the EEA fishing fleet.
The flag of the fishing vessels is used as the primary indication of the nationality of the catch, though this concept may differ in certain circumstances (for example, in the case of joint ventures and chartering of vessels). The national authorities are requested to submit catch statistics for all commercial, subsistence and recreational fisheries. However, the reporting of data for recreational fisheries is known to be incomplete. The data are reported as the live weight equivalent of the landings (i.e. the landed weight of a product to which an appropriate conversion factor has been applied). The data therefore exclude quantities of fishery products which are caught but not landed. For example, fish caught but rejected at sea (non-commercial species, under-sized fish, etc.) or fish consumed on board the vessel.
Aquaculture production Aquaculture means the farming of aquatic organisms including fish, molluscs, crustaceans, aquatic plants and other aquatic organisms. It includes capture-based aquaculture and the production of aquatic organisms which are harvested by an individual or corporate body which has owned them throughout their rearing period. The data are recorded as the live weight equivalent of the product.
Maritime sectors comprise activities linked to the sea. The link between activities and the sea may be explained by the use of marine resources, maritime areas or by the vicinity of these areas. The relationship between the activities and the sea can be more or less direct and maritime sectors cannot be seen as a single sector activity within the NACE classification but rather as a set of activities.
Due to the horizontal aspects of the topic, the article combines the latest data from different sources: structure business, international trade, product, maritime transport and fishery statistics.
Further Eurostat information
- Economic ebb and flow in maritime sectors Statistics in focus 5/2013
Methodology / Metadata
- Maritime transport (ESMS metadata file)
- International trade data (ESMS metadata file)
- Basic summary of the methodology employed for structural business statistics
Source data for tables, figures and maps (MS Excel)
- Directive 2009/42 of 6 May 2009 on statistical returns in respect of carriage of goods and passengers by sea (Recast)
- Regulation 1637/2001 of 23 July 2001 amending Regulation 3880/91 on the submission of nominal catch statistics by Member States fishing in the North-East Atlantic
- Maritime ports freight and passenger statistics
- Maritime transport of goods - quarterly data
- Maritime transport statistics - short sea shipping of goods