25th Annual Report on the Greek Ferry Market<\/p>\n
Greek coastal shipping is a vital pillar of the national economy, of tourism, of social cohesion and of the geographical continuity of the country, securing the connectivity of more than 115 islands and supporting the year-round functioning of the island regions, given that only 27 islands have airports. It is the means that unites the island country with the mainland, supports the daily life of islanders and secures tourism, development and the national presence in the Aegean and the Adriatic.<\/p>\n
At the same time the country is one of the most significant European powers in passenger shipping, managing approximately 18% of European ferry traffic, despite accounting for only 2% of the population of the European Union.<\/p>\n
The modernization of the fleet, the identification of financial resources for the construction and purchase of \u201cgreen\u201d vessels, the alignment with the new regulations on the use of fuels, the compression of vessel operating costs and the mandatory participation in the Emissions Trading System were the principal issues occupying ferry companies in 2025.<\/p>\n
In last year’s Annual Report we stressed that the mandatory participation of companies in the European Emissions Trading System (EU ETS) for maritime transport by 2026, together with FUEL EU Maritime and the designation of the Mediterranean as a SECA \u2013 Sulphur Emission Control Area \u2013 would greatly increase the operating costs of companies and, as a consequence, ticket prices as well. The EU ETS, which in Greece concerns voyages to and from Crete and the Adriatic, tripled for 2025, as the obligation to purchase allowances rose to 70% from 40% in 2024. In the current year, 2026, the purchase obligation will rise to 100%.<\/p>\n
At an operational level, 2025 was characterised by a significant de-escalation in fuel prices and by their remaining at low levels for the greater part of the year.<\/p>\n
The year 2026, however, arrived with a significant escalation of geopolitical tension in the Middle East, following military operations by the U.S.A. and Israel in Iran and the extension of the conflict to other countries of the region during the first quarter of 2026, bringing enormous turbulence to the global economy.<\/p>\n
According to the data of the Association of Passenger Shipping Companies (SEEN), in the months of March and April, given that the price of Marine Gas Oil rose to approximately \u20ac1,200 per tonne, the additional monthly burden on the ferry sector from fuel amounted to approximately \u20ac18 million, and it is estimated that May will be at the same level. If the war continues, from June, when sailings will also increase, ferry operators estimate the total monthly burden at \u20ac25 million.<\/p>\n
Because of the prevailing uncertainty, the effect and the duration of the above developments cannot be estimated with accuracy at this stage. Recently the Greek government, as part of a package of measures to address the increase in energy costs for Greek society, announced compensation for ferry companies for the mandatory discounts granted to specific social groups, in order to limit the pass-through of the increased cost to ticket prices and to facilitate travel by sea. The effectiveness of the measure will depend on the intensity and duration of geopolitical conditions.<\/p>\n
Both the Attica Group and Minoan Lines, through the Grimaldi Group, having a strong capital structure and satisfactory liquidity, are proceeding with investment programmes for the energy and environmental upgrading of their fleets. Seajets and the other companies are confined to the purchase of second-hand vessels, which they then modernise.<\/p>\n
The green transition of ferry shipping is emerging as one of the most demanding and capital-intensive undertakings of Greek shipping, with a funding gap of more than \u20ac5 billion over a 25-year horizon. The data of the master plan drawn up for the sector by the Ministry of Maritime Affairs and Insular Policy illuminate the scale of the challenge for the fleet, the ports and fuels, with immediate implications for fares and the island economy.<\/p>\n
According to the study, the total funding gap for the green transition of ferry shipping exceeds \u20ac5 billion over 25 years, with approximately \u20ac3 billion relating to capital expenditure (CAPEX) and more than \u20ac2 billion to additional operating cost (OPEX). The scale of the requirement is linked to 326 passenger shipping vessels (total passenger shipping, against the 164 scheduled ferry vessels covered by the present analysis) and more than 185,000 annual connections, a fact that makes a gradual, multi-level investment strategy unavoidable.<\/p>\n
The renewal and upgrading of the fleet is an immediate priority, since the median age of ferry vessels stands at 28 years and a significant part of the fleet will have to be either replaced or extensively converted. A significant part of the fleet is estimated to be capable of remaining operationally and environmentally competitive through retrofit and technological upgrades, reducing the need for new construction but increasing the requirement for specialised financing and technical support.
\nThe Ministry of Maritime Affairs and Insular Policy has announced that by October 2026 it plans to launch the new \u20ac500 million vessel conversion programme with the aim of using green fuels, opening the way for the modernization of one of the oldest fleets in Europe. The programme in question is described as part of a broader strategy that combines fleet renewal, the development of port infrastructure and the creation of new financial instruments for the green transition of ferry shipping.
\nAt the same time, the Ministry is in negotiations with the European Commission for the creation of a special State aid regime that will allow the financing of both new vessels and conversions, while the new European financial instruments of the next fiscal period are also expected to play a significant role.<\/p>\n
II.\u00a0 MARKET DEVELOPMENTS ANALYSIS\u00a0<\/strong> In terms of size, the global ferry market is estimated at $13.85 billion in 2025 and is expected to reach $18.59 billion by 2032, with a compound annual growth rate (CAGR) of 4.3%. Growth is fed by three main factors: the development of coastal and island tourism, the shift towards sustainable technologies, and government investment in waterborne transport infrastructure.<\/p>\n Despite steady demand, the sector is in a phase of significant transformation. The most decisive development concerns the green transition, which is imposed by international and European regulations for the reduction of emissions. Companies are called upon to invest in new technologies, such as LNG-fuelled, hybrid or fully electric vessels, which entails a high cost of capital. Uncertainty as to which technology will prevail intensifies investment risk.<\/p>\n The fastest growing technology is electric ferries, with their market having expanded from $2.64 billion in 2025 to $3.03 billion in 2026, with a CAGR of 15%. By 2032, estimates put this technology at $8.36 billion, figures that reflect the systematic shift of the sector.<\/p>\n Europe holds 42% of the electric ferry market and is expected to grow at the fastest rate, thanks to strict regulatory requirements (EU ETS, Green Deal, IMO 2050). European owners have placed record orders for electric and hybrid craft, with deliveries scheduled up to 2027. Norway remains the pioneer in this field, with an extensive network of electric ferries and trials of autonomous navigation.<\/p>\n In January 2025 the United Kingdom, through the Clean Maritime Demonstration Competition, committed \u00a330 million to support hybrid innovation. In Scandinavia, extensive trials of autonomous passenger vessels have begun on scheduled routes in the Stockholm and Helsinki archipelagos.<\/p>\n Asia-Pacific, with a share of 22.9% in 2025, follows in terms of growth rate. China has emerged as a significant factor, using state investment to become a leading producer of electric ferries, although it remains behind Europe. Japan, Indonesia and the Philippines, because of their archipelagic geography, are natural markets for ferries as a primary means of transport.<\/p>\n 70% of new orders worldwide concern electric vessels. In May 2025 the company Incat in Tasmania presented a 130-metre craft capable of carrying 2,100 passengers and 225 vehicles, with fully zero emissions and pioneering battery technology.<\/p>\n In addition, the market is strongly affected by the cost of fuel, which is the most significant operating expense for ferry companies. Fluctuations in energy prices directly affect profitability, while in combination with increased interest rates they make the financing of new investment more difficult. At the same time, demand remains sensitive to macroeconomic and geopolitical developments, given its close connection with tourism.<\/p>\n At regional level, Asia-Pacific is the largest market, because of population size and geographical particularities, while Europe stands out for the strictness of its regulatory framework and its leadership in the adoption of \u201cgreen\u201d technologies. North America, on the other hand, shows increased growth in urban waterborne transport.<\/p>\n In summary, the international ferry market is characterised by steady but not high growth, with strong elements of resilience because of its essential function. At the same time it faces significant challenges relating to cost, regulation and the energy transition. It is therefore a sector which, while retaining strong fundamentals, is entering a period of increased investment requirements and strategic transformation.<\/p>\n 2.\u00a0 Greek Ferry Market\u00a0<\/strong> The average age of vessels remains high, with a need for immediate renewal investment.<\/p>\n Despite the full liberalisation of the market since 2002, few new companies have entered, which limits the alternatives available.<\/p>\n New four-year public service contracts (2025\u20132029) for the unprofitable routes were approved by the Court of Audit, with total funding of \u20ac668 million. The annual budget increases from \u20ac148 million to \u20ac167 million from 2026. The continuous rise in state subsidies, however, does not always translate into a corresponding improvement in services.<\/p>\n The ferry market is a sector with pronounced seasonality in passengers and private cars, with higher traffic in the months of July to September and lower traffic in the months of November to February. By contrast, truck traffic appears distributed throughout the year with far less seasonality.<\/p>\n An increase in passenger traffic of 2% in 2025 against 4% in 2024, and a marginal rise in vehicles of 1% against 3% in 2024, compared with 2024.<\/p>\n The mandatory participation of companies in the European Emissions Trading System (EU ETS) for maritime transport by 2026, together with the designation of the Mediterranean as a SECA \u2013 Sulphur Emission Control Area \u2013 greatly increase the operating costs of companies and, as a consequence, ticket prices as well. Shipping companies are obliged to purchase certificates and to surrender them for 40% in 2024, 70% in 2025 and 100% of their verified emissions under the MRV Regulation from 2026 onwards.<\/p>\n Voyages connecting islands with a population of fewer than 200 thousand permanent residents with other ports within the same country to which the island in question belongs may be exempted from this obligation until 2030.<\/p>\n Accordingly, in Greece the obligation concerns voyages to and from Crete and the Adriatic.<\/p>\n The cost of tickets has increased, given the above expenses which, together with other operating costs (spare parts, repairs and maintenance, payroll, insurance, loan repayment and others), create upward pressure.<\/p>\n The price of Marine Gas Oil in Piraeus increased dramatically in 2026 because of geopolitical tension in the Middle East, rising to \u20ac1,200 per tonne (March-May 2026) from \u20ac500-\u20ac600 per tonne in 2025. The additional monthly burden on the sector amounted to \u20ac18-25 million. The government announced compensation of \u20ac56 million for mandatory ticket discounts.<\/p>\n The reduction of pollutant emissions presupposes investment in new technologies both in the fleet and in the ports. Policies are required to support the green transition of the ferry market in order to align with the new regulations on the use of fuels.<\/p>\n Difficulty in finding financial resources, which is the panacea for the construction and purchase of green vessels.<\/p>\n The 30 small companies active in the sector, mainly on unprofitable and inter-island routes, cannot raise finance because of their limited own funds and the absence of corporate transparency.<\/p>\n The Ministry of Maritime Affairs and Insular Policy awards tenders for subsidized unprofitable routes to companies without checking their financial data, because it is not compulsory to do so (!).<\/p>\n The payment procedure for the Transport Equivalent measure for passengers and businesses in the island regions of the country has been completed, with a total amount of \u20ac22.2 million.<\/p>\n Attica Group is renewing its fleet through the sale of 6 older vessels with an average age of 29.3 years and the purchase of 3 newer vessels with an average age of 7.3 years.<\/p>\n Seajets completed a barrage of 15 vessel purchases in 2025\u20132026, strengthening its fleet. These include the purchase of 5 high-speed craft from Attica, consolidating its position as the largest high-speed fleet in the world.<\/p>\n XRTC Business Consultants Ltd.<\/strong> has been active since its establishment (1999) in the shipping sector, providing its clients with solutions in (i) financing, (ii)\u00a0representation\u00a0and (iii) the development of new commercial activities. Its client base\u00a0comprises\u00a0companies offering financial services, ship management services, ship\u00a0repair\u00a0and shipbuilding services, as well as\u00a0organisations\u00a0responsible for maritime policy.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" 25th Annual Report on the Greek Ferry Market Greek coastal shipping is a vital pillar […]<\/p>\n","protected":false},"author":23,"featured_media":245684,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[273,301],"tags":[307],"class_list":["post-283301","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maritimes-news","category-passenger","tag-featured-en"],"yoast_head":"\n
\n1.\u00a0 International Ferry Market\u00a0<\/strong>
\nThe international ferry market is a specialised but strategically significant branch of shipping, which combines the carriage of passengers and vehicles with critical public transport and tourism infrastructure functions. During the period 2025\u20132026 the market is characterised by moderate but steady growth, combined with intense structural change relating mainly to the energy transition and to technological developments.<\/p>\n
\nGreek coastal shipping has an oligopolistic structure and high concentration, since just two large ferry companies\/groups control approximately 60% of the total fleet over medium and long distances.<\/p>\n
\nThe obligation to surrender allowances in the maritime transport sector has been introduced gradually over the period 2024\u20132026.<\/p>\n