Greek shipping

Greek companiescontrol 21% (2022)of the world's total merchant fleet, making it the largest in the world.They are ranked in the top 5 for all kinds of ships, including first for tankers and bulk carriers.

Greeceis amaritimenation by tradition, asshippingis arguably the oldest form of occupation of theGreeksand has been a key element of Greek economic activity sinceancient times.Today, shipping is the country's most important industry worth$21.9 billion in 2018. If related businesses are added, the figure jumps to$23.7 billion, employs about 392,000 people (14% of the workforce), and shipping receipts are about 1/3 of the nation'strade deficit. In 2018, theGreek Merchant Navycontrolled the world's largestmerchant fleet,in terms oftonnage,with a totalDWTof 834,649,089 tons and a fleet of 5,626 Greek-owned vessels, according toLloyd's List.Greece is also ranked in the top for all kinds of ships, including first fortankersandbulk carriers.

Many Greek shipping companies have their headquarters located either inAthensorLondonandNew York City,and are run by Greek traditional shipping families which are notable for their great wealth and influence in the international maritime industry. The 7th Secretary General (2003-2011) of theInternational Maritime OrganizationwasEfthymios Mitropoulos.

Historic background

The Greeks have been a maritime nation sinceantiquity,as the mountainous landscape of the mainland, and the limited farming area and the extended coastline of Greece led people to shipping. The geographical position of the region on the crossroads of ancient sea lanes in theeastern Mediterranean,the multiplicity ofislandsand the proximity to other advanced civilizations helped shape the maritime nature of the Greek nation at an early stage. In Greece and the wider Aegean, international trade existed from theMinoanandMyceneantimes in theBronze Age.The presence of goods such aspottery,gold,copper objects far away from their area of provenance attests to this wide-ranging network of shipping transport and trade that existed between the Greek mainland and the Greek islands.The Greeks soon came to dominate the maritime trade in the region, gradually expanding it along the shores of the Mediterranean toEgypt,Phoenicia,Asia Minor,theBlack Sea,and establishingcolonies.The prowess of the ancient Greek navy was primarily displayed in naval battles during thePersian wars,theDelian League eraand thePeloponnesian war.In the following centuries, a large part of the sea trade of theRoman Empirewas carried out by the Greeks, while they continued to be involved and play a major role in shipping during the era of theByzantine Empireas well.

Ottoman era and later

View ofHydra (island)

The port ofGalaxidi

In the times of theOttoman Empire,the involvement of the Greeks in international maritime commerce was also prominent and Greek ships could be found especially in the ports of the eastern Mediterranean. They expanded their shipping activities and trade towardswestern Europein the 16th century, taking advantage from the rapidly increasing need for grain. The restrictions imposed by the Ottomans to regulate thegrain tradedid not prevent the Greeks from carrying out illicit trade which brought considerable fortunes to them. Later, the Greek maritime merchants increased their influence, as they supplied theBalkanswith raw materials, handled goods on behalf of foreigners, distributed the goods to the final markets and controlled the sea trade in the region, assuming the role of shipping agents. During the 18th century, the consolidation of political and economic power at the hands of thePhanariotesinConstantinoplehelped further expansion of the Greek maritime activity into the rest of Europe. The Greek merchant marine was also able to displace the western maritime powers due to the Anglo-French wars, which led their commerce to decline, and the navigation of the Greek vessels under the protection of theRussian Empirein many occasions (after theTreaty of Küçük Kaynarca).

The most prominent of the Greek cities that emerged as maritime powers were those from western Greece, primarilyGalaxidiandMissolonghi,but alsoArta,Preveza,PaxiandCorfu,due to their early commercial ties with the Italian cities. In addition, theAegean Islandswere heavily active in shipping, where traditionally the inhabitants occupied with maritime commerce, especiallyHydra,Spetses,Andros,Syros,Chios,Kasos,PsaraandMykonos.Although they did not have their own national flag, they flew the flags of the Russian and theBritish Empirefor international routes. In 1792, the first Greek insurance company was founded inTriesteand those ofOdessafollowed in 1808 and 1814. Gradually, Greek seafarers made a lot of money and gained further knowledge and experience as they had to refine their ships and themselves in warfare against pirates. The growth of the Greek merchant fleet gave confidence and success to them, while their contact with the western peoples awakened their national consciousness and made them feel free. The existence of a reservoir of trained sailors was to be proven an inestimable advantage once theGreek War of Independencehad broken out, when the Greek merchant fleet converted to a formidable martial weapon against the cumbersome ships of the Ottoman fleet.

Post-Napoleonic and Wars of Independence

Greek merchants also provided the material basis for the NeohellenicDiafotismos.Impelled by the sense of local patriotism that had always been strong in the Greek world, they endowed schools and libraries. The three most important schools-cum-colleges in the Greek world on the eve of theWar of Independencewere situated inSmyrna,Chios,andAyvalık(on the coast of Asia Minor opposite the island ofLesbos), all three major centres of Greek commerce.

The Greek fleet in theBattle of IteabyYiannis Poulakas

In the wake of the nineteenth centurydiasporathe Chiot families were well positioned to take advantage of the commercial opportunities across Europe after theNapoleonic Wars.Families such as theRalliswere already established inMarseilleand London. They established a network of shipping specialists across all of the major ports in Europe, Asia and the Americas. Gaining a seat on theBaltic Exchange,Ralli brothers were able to introduce shippers and agents to reliable sources of funding and throughLloyd's of London,to reliable insurance. Uniquely, this enabled them finance their fleets with the ships acting as security, a practice that was illegal in Greece. In some parts of the world these fleets were Greek-owned, but in Britain they were almost exclusively chartered by London Greeks flying under the British Flag. The major shipping companies were then owned by Papayanni, Spartali and Schilizzi, while theRodocanachi familybecame pre-eminent traders in their cargoes.

Accompanying these Greek-run fleets were local expatriate communities of workmen and agent-translators who managed the unfamiliar customs and bureaucracy in foreign ports. In these times before the telegraph, this network gave the Greek shippers advance warning of events and allowed them to control news and prices in advance of their competitors.

The financial crisis of the 1860s saw some of these businesses collapse.Nonetheless, the tradition of endowment continued, and it was shipping that funded various institutions, such as theNational Library of Greece.

These changes heralded a move by some of the Chios families out of shipping and into financing or broking, allowing Ionian-descended families to establish their own networks and shipping dynasties, most notably theVaglianos,Ziffa and Sechiari, with funding routed from the London financial markets.

Twentieth century

View of thePort of Thessaloniki

TheMinistry of Shippingat thePort of Piraeus

Many changes and upheavals affected their markets: theRussian Revolution,the collapse of theOttoman Empireand restrictions inEgyptthat closed their markets to foreigners. The Greek grain merchants in London andOdessalost access to their traditional grain suppliers and markets and, rather than close, they seized the chance to invest in merchant fleets of steamships, and specialized intrampshipping.

TheSecond World Warsaw those Greek shipping companies operating in the Allied areas, place their fleets under control of the British Merchant Marine, and suffer the same depredations and difficulties.

Modern Greek Merchant Navy

Main article:Greek Merchant Navy

After the end of World War II, the Greek-run fleets were able to re-establish themselves under their national flag. The changing dynamics saw them more closely aligned with their own national state and the establishment of theGreek Merchant Marineservice.

During 2010–2011, in terms of ship categories, Greek companies had 32.5% of the world's tankersand 23.8% of the world's bulk carriers (in dwt).An additional equivalent of 20.05% of the world's tanker dwt was on order,with another 14.1% of bulk carriers also on order.Shipping is one of the country's most important industries. In 2010–2011, it accounted for 8% of GDP,employed about 290,000 people (8% of the workforce),and represented 1/3 of the country's trade deficit.Earnings from shipping amounted to €35.4 billion in 2014,while between 2000 and 2010 Greek shipping contributeda total of €280 billion(almost the country's public debt in 2014 and 4.5 times the receipts from theEuropean Unionin the period 2000–2013).A European Community Shipowners' Association report for 2013–2014 reveals that theGreek flagis the first-most-used internationally for shipping, while it ranks first in theEU;the same ECSA report showed that there are approximately 950 Greek shipping companies in operation.

Counting shipping as quasi-exports and in terms of monetary value, Greece has ranked 4th globally in 2011 having "exported" shipping services worth $17.704B; only Denmark, Germany and South Korea have ranked higher during that year.

Greek shipping services "exports"

Year	2000	2001	2002	2003	2004	2005	2006-2008	2009	2010	2011
Global ranking	5th	5th	5th	4th	3rd	5th	-b	5th	6th	4th
"Exports" (US$ million)	7,558.995	7,560.559	7,527.175	10,114.736	15,402.209	16,127.623	-b	17,033.714	18,559.292	17,704.132
"Exports" (€ million)	8,172.559	8,432.670	7,957.654	8,934.660	12,382.636	12,949.869	-b	12,213.786	13,976.558	12,710.859
GDP (€ million)	137,930.1	146,427.6	156,614.3	172,431.8	185,265.7	193,049.7b	n/a	231,081.2p	222,151.5p	208,531.7p
"Exports" as%GDP	5.93	5.76	5.08	5.18	6.68	6.71	n/a	5.29	6.29	6.10
	bsource reports break in time series;psource characterises data as provisional

International Maritime Organization

The 7th Secretary General (2003–2011) of theInternational Maritime Organization,Efthymios Mitropoulos,was from Greece.

Further reading

• Ardeleanu, Constantin (2014)."The Opening and Development of the Black Sea for International Trade and Shipping (1774–1853)".Euxeinos.14.University of St. Gallen: 30–54.
• Chatziioannou, Maria Christina (2005). "Crossing Empires: Greek Merchant Networks Before the Imperialistic Expansion, 1770-1870". In Baghdiantz-MacCabe, Ina; Harlaftis, Gelina; Minoglou, Ioanna Pepelasis (eds.).Diaspora Entrepreneurial Networks: Four Centuries of History(Paperback). London: Bloomsbury Publishing.ISBN9781859738801.
• Delis, Apostolos (2014)."From Lateen to Square Rig: The evolution of the Greek-owned merchant fleet and its ships in the eighteenth and nineteenth centuries".The Mariner's Mirror.100(1). London: Taylor & Francis: 44–58.doi:10.1080/00253359.2014.866374.S2CID162358756.
• Economou, Emmanoui M.L.; Kyriazis, Nicholas C.; Prassa, Annita (2016),The Greek Merchant Fleet as a National Navy During the War of Independence 1800-1830(PDF),MPRA
• Galani, Katerina; Papadopoulou, Alexandra, eds. (2022).Greek Maritime History: From the Periphery to the Centre(Hardback). Brill's Studies in Maritime History. Vol. 11. Leiden, The Netherlands: Brill.ISBN978-90-04-46771-2.
• Hale, John R. (2009).Lords of the sea: the epic story of the Athenian Navy and the birth of democracy.New York: Viking.ISBN9780670020805.
• Harlaftis, Gelina (2019).Creating Global Shipping: Aristotle Onassis, the Vagliano Brothers and the Business of Shipping, c.1820-1970(Hardback). Cambridge: Cambridge University Press.ISBN9781108475396.
• Harlaftis, Gelina (2007)."From Diaspora Traders to Shipping Tycoons: The Vagliano Bros".Business History Review.81(2). Cambridge, England: Cambridge University Press: 237–268.doi:10.1017/S0007680500003354.S2CID154649118.
• Harlaftis, Gelina (2015).Greek Shipowners and Greece 1945-1975: From Separate Development to Mutual Interdependence(Hardback). Bloomsbury Academic.ISBN9781474241397.
• Harlaftis, Gelina; Papakonstantinou, Katerina (eds.).Η ναυτιλία των Ελλήνων, 1700-1821[Greek Shipping, 1700-1821. The Heyday before the Greek Revolution] (Paperback) (in Greek). Athens: Kedros Publications.ISBN978-960-04-4318-9.
• Harlaftis, Gelina (2005). "Mapping the Greek Maritime Diaspora from the Early Eighteenth to the Late Twentieth Centuries". In Baghdiantz-MacCabe, Ina; Harlaftis, Gelina; Minoglou, Ioanna Pepelasis (eds.).Diaspora Entrepreneurial Networks: Four Centuries of History(Paperback). Oxford: Berg Publishers.ISBN9781859738801.
• Harlaftis, Gelina (1994)."Patterns of Ownership and Finance in the Greek-Owned Deep-Sea going fleet, 1880-1914".Research in Maritime History.6.St. John’s Newfoundland: IMEHA: 139–165.
• Harlaftis, Gelina (2008)."Τhe Greek Shipping Sector c. 1850-2000".Research in Maritime History.37.St. John’s Newfoundland: IMEHA: 79–104.
• Laiou, Sophia; Harlaftis, Gelina (2008). "Ottoman State Policy in Mediterranean Trade and Shipping, c. 1780-1820". In Mazower, Mark (ed.).Networks of Power in Modern Greece.London: Hurst Publishers.ISBN9781850659228.
• Theotokas, Ioannis; Harlaftis, Gelina (2004)."European Family Firms in International Business: British and Greek Tramp-Shipping Firms".Business History.46(2). Taylor & Francis: 219–255.doi:10.1080/0007679042000215115.S2CID154315315.
• Theotokas, Ioannis; Harlaftis, Gelina (2009).Leadership in World Shipping: Greek Family Firms in International Business.Houndmills Basingstoke, England: Palgrave Macmillan.ISBN978-0-230-57642-1.

External links

• History of Greek shipping
• Greek freighter DIAMANTIS, sunk on 3 October 1939 by German U-Boat U-35
• Historic house flags of Greek shipping companies
• George Bitros and Ioanna Minoglou:Entrepreneurship and market order: Some historical evidence[1]Munich UniversityPersonal RePEc Archive