VZCZCXYZ0012
RR RUEHWEB

DE RUEHTH #0376 0851316
ZNR UUUUU ZZH
R 261316Z MAR 09
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC 3419
INFO RUEHLO/AMEMBASSY LONDON 1471
RUEHBS/USEU BRUSSELS

UNCLAS ATHENS 000376 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ETRD SENV GR
SUBJECT: GREEK SHIPPERS HURTING, LOOKING TO USG 
 
¶1.  SUMMARY: On March 10, incoming President of the Hellenic 
Shipowners Association (HSA), Theodore Veniamis and two major 
ship owners and former presidents of the HSA, George Gratsos 
and John Lyras, told Econoff that Greek  ship owners were 
suffering from a severe drop in trade financing and from an 
over-optimistic capital investment strategy from years past. 
Veniamis elaborated on other key ship owner concerns, 
including dealing with EU emissions and competition 
regulations and said the HSA has looked to the USG for 
support in Brussels.  He indicated that the HSA had good 
relations with the Marine and Fisheries Committee in the U.S. 
Congress, and said he was planning a visit to Washington in 
the fall. END SUMMARY. 
 
¶2.  Newly elected president of the Hellenic Shipowners 
Association Theodore Veniamis told Econoff during an 
introductory call that the Greek-controlled shipping fleet, 
was facing severe difficulties as a result of the global 
downturn in trade.  Veniamis said the HSA represents Greek 
shipping companies that own commercial ships over 3000GWT, 
most of which are bulk carriers and tankers.  He said that 
the main challenge facing the shipping companies in this 
difficult year was the lack of international trade finance 
for bulk carriers and to a lesser extent tankers.  Veniamis 
said that container deliveries have also dropped sharply with 
a drop in consumer demand.  These difficulties were 
compounded by over-optimistic capital investment planning 
from previous years as, Veniamis said, Greek companies 
currently have over 340 ships on order, with companies 
scrambling to re-schedule deliveries or cancel them outright. 
 Most of these ships are being built in Chinese and Korean 
yards which, Veniamis said, have demonstrated good 
flexibility in order to avoid the cancellations of contracts. 
¶3.  At the same time, Veniamis said, shipping firms are 
running out of anchorage space in certain parts of the world, 
particularly in Hong Kong and Singapore.  (NOTE: We have 
observed a significant increase in the number of ships, 
mostly apparently coastal freighters, anchored in the Saronic 
Gulf. End note.)  Because of these difficulties, he said, 
Greek shippers have increased the number of ships they are 
sending to scrap yards ) 60 were contracted to scrap in 
February 2009 in Bangladesh and India, compared with only 
five in July of 2008.  This trend will maintain through 2009 
as EU rules will force the retirement by the end of 2010 of 
all non-double hulled tankers calling on EU ports.  Gratsos 
clarified that tankers trading only between ports that do not 
require double hulls will not be affected. 
¶4.  Characterizing the Greek merchant fleet as a "strategic 
asset" --  one of the largest fleets in the world, accounting 
for over 20 percent of tanker hulls and 25 percent of bulk 
carriers, Veniamis emphasized that the Hellenic ship owners 
have in the past looked to the USG for support in various 
ways.  For example, Veniamis told us that the HSA found 
itself frequently on the USG side of issues involving the 
European Commission, from competition rules to emissions. 
The HSA, he said, has a very good relationship with the US 
Coast Guard, especially in the IMO.  The single most 
effective relief for Greek shipping interests now, he said, 
would be for international trade finance to begin flowing 
again, and the Greeks are looking to the USG to help make 
that happen. 
¶5.  The HSA leadership told us they usually travel to 
Washington every two or three years in order to meet with 
Congressional committees and USG entities.  Veniamis said the 
HSA had a very good relationship with  Members and staff on 
the "House Committee on Marine and Fisheries issues." (Note: 
we believe he was referring to the Transportation 
Subcommittee on Coast Guard and Maritime Transportation. End 
note.) Veniamis said he was planning a visit to Washington in 
the fall .  One theme he expected to broach was the 
"strategic challenge" facing the shipping industry. 
Elaborating, he said that the growing concentration of 
shipping and ship building in China will result in 
international maritime rules increasingly adjusted to address 
Chinese rather than international priorities. 
McCarthy