With increased operating costs and reduced demand in the winter months, Greek shipping continues to face challenges as EU environmental obligations, energy costs and seasonality squeeze lines’ margins of viability.
As a counterweight, the Ministry of Shipping and Island Policy has already proceeded to announce an open international tender for four-year public service contracts for the so-called barren lines to be held on November 4, 2025.
These new contracts create a framework of predictability and financial security for companies in order to proceed with “green” fleet modernization investments due to the EU’s environmental regulations as well as better and more punctual travel for passengers.
ETS and the “fuel” of the green transition
It is noted that the implementation of the European Emissions Trading System (EU ETS) has already brought about significant burdens on ships operating on Crete’s lines, as companies are required to purchase carbon dioxide (CO₂) emission rights.
Today, the ETS is applied to international routes – such as those between Greece and Italy – and to routes to islands with a population of more than 200,000 inhabitants, such as Crete.
From 2029, the exemption applicable to the rest of the Greek shipping islands expires, leading to the full inclusion of all shipping lines in regime A and in the FuelEU Maritime regulation which aims to quantitatively reduce the carbon intensity from ships’ exhaust gases
High daily operating costs
According to data from shipping agents, the daily cost of operating a conventional ship serving the Crete route amounts to approximately 63,400 euros, of which 6,500 euros each day alone correspond to the cost of participating in the ETS emissions trading system.
Accordingly, for the Dodecanese the daily operating cost of a conventional ship reaches 79,800 euros and for the Cyclades 42,000 euros.
Fuel consumption is the biggest expense, with 45,000 euros per day for the Dodecanese, 20,000 euros for Crete and 18,000 for the Cyclades.
This is followed by the daily crew costs, which reach 18,000 euros for conventional ships bound for the Dodecanese and 18,000 for the ships of Crete and 13,000 for the Cyclades
Repair and maintenance costs are also important, reaching 11,500 for the conventional ones in the Dodecanese, 14,000 for Crete and 8,000 for the Cyclades, which highlights the operational requirements on high-wear and high-speed lines.
Insurance and port costs are at more controlled levels, with 3,000 euros for the Dodecanese and 1,700 euros respectively for Crete, while lubricants add about 1,000 euros per day.
As industry executives note, the lack of financial tools for “green” investments combined with increasing emissions obligations creates a competitive disadvantage for Greek shipping, which is called upon to serve islands with strong seasonality and high energy costs.
At the same time, they point out the need for a special “Fund & Reward” fund, which will return the ETS revenues to the industry, now considered pivotal for the sustainability of coastal shipping routes and the financing of new “green” ships with low-emission fuels
It is noted that the average age of the fleet will reach 36 years by 2030, which makes it imperative to renew and technologically upgrade the ships.
The complete replacement of the ships over 25 years old will require investments of more than 3 billion euros, while the upgrading of the newer ships is estimated at more than 200 million euros.
Restrictions on ferry tickets this year
It is noted that in order to contain ticket increases and relieve the industry from the burden of new environmental regulations and increased fuel costs, the Ministry of Shipping this year proceeded to reduce port dues by 50% for conventional lines.
The measure, which came into effect on May 1, 2025, will last until April 30, 2026, and according to government sources, aims to keep fares affordable for passengers and islanders.
The fee cut has acted as a cost shield for shipping companies, absorbing some of the charges that would have been passed on to fares — at a time when the imposition of the EU ETS and FuelEU Maritime has already sent operational costs soaring.
Speaking to APE-MPE, the president of the Association of Passenger Shipping Companies (SEEN), Dionysis Theodoratos, said that “in order for Greek shipping to become more resilient, we must let it become more resilient.”
He referred to the social policy of mandatory discounts, which are imposed on companies in favor of insularity and specific social groups, noting, however, that “Social policy must be exercised, but not at the expense of companies as in other means of transport, the same discounts are subsidized. In coastal shipping, no.”
Change the routing model
The president of SEEN also underlined the need to review the institutional framework and the routing policy. “70% of the ferry turnover is concentrated in the summer months. During this time, the bulk of the fleet — conventional and high-speed — is active. In winter, however, conventional ships are required to continue connecting the islands with very low passenger traffic and increased operating costs. Well, we have to look again at the route map and the relationship between conventional and high-speed trains. The first operates all year round, the second only four months”.
VAT – “Greece with the highest rate in Europe”
Referring to the tax policy, Mr. Theodoratos noted that Greece, although it has 18% of Europe’s shipping traffic, still maintains the highest VAT on tickets with 13% on passengers, 24% on vehicles, while in the rest of the European countries the rates are significantly lower 10% in Spain and Finland, 6% in Sweden, 5% in Italy and 0% in Malta and Denmark.
When asked about whether a reduction in VAT will be passed on to passengers, the president of SEEN emphasizes that “if the government reduces VAT, let it check through the price observatory whether this reduction reaches the passenger”.
The industry is at a crossroads
Greek shipping is currently at a turning point. On the one hand, it must meet the environmental obligations of the new era, modernize the fleet and maintain its social mission.
On the other hand, it has to do this without permanent financial tools and with administrative commitments that limit its competitiveness.