Key Statistics 

The economic impact of UK shipping, ports and maritime business services

‘Maritime UK’ is the body that represents the shipping, ports and maritime business services sectors on key strategic and practical issues of joint concern. This briefing note summarises the results of economic impact studies of the shipping and ports industries on the UK economy undertaken by Oxford Economics.

Maritime UK - shipping, ports and maritime business services

In 2007, the Maritime UK sectors directly contributed £12.7 billion to UK Gross Domestic Product (GDP). 
This is more than restaurants; publishing; or the manufacture of pharmaceuticals, medicinal products and botanical products (Chart 1). In total, they contributed around £25 billion to UK GDP.

The Maritime UK sectors directly employ 230,000 people.
This is 0.8% of all employment in the UK. This is slightly more people than the telecommunications; wholesaling of food, beverage and tobacco; or property letting industries (Chart 2). In total, they supported around 500,000 jobs.   

Shipping

Since the introduction of the tonnage tax in 2000, the size of the UK shipping industry has increased markedly.
In 2000, the UK-based fleet measured 7.2 million deadweight tonnes (dwt). In 2007, it measured 19.6 million dwt (and 21 million dwt now).

The UK shipping industry is estimated to support 212,000 jobs in 2007.
Of these, 96,000 are directly employed. Just over 79,000 jobs are supported in the shipping industry’s supply chain (indirect) and 36,000 jobs through their staff’s retail spending (induced)

In 2007, the UK shipping industry is estimated to have contributed
£9.8 billion to UK GDP.

The impact of the UK shipping industry extends well beyond these narrow estimates.
They include: providing ex UK-seafarers for shore-based jobs; playing a crucial part in the UK’s transport infrastructure; and acting as a source of ships and seafarers for defence in times of need.

Ports

The UK ports sector is the largest in Europe by tonnes of cargo.
Over 95% of UK imports and exports by volume and 75% by value pass through ports.

In 2007, 24.8 million international sea passengers went through UK ports. Another 24.2 million domestic sea passengers traveled between UK ports.

In 2007, UK ports are estimated to have supported 362,000 jobs (including direct, indirect and induced impacts).

UK ports are estimated to have contributed £17.9 billion to UK GDP.
The impacts of ports extend well beyond these narrow estimates with a large number of industries highly dependent on ports for their existence (for example, fishing, marine dredging and sectors that rely on imports of bulk raw materials or export finished goods).

Together the Oxford Economics studies suggest the shipping and ports industries support 489,800 jobs and £23.4 billion in GDP.
This is almost 2% of UK employment and GDP (see Chart 3)

chart 3

Maritime business services

London is a leading global centre in the supply of business services to the international maritime shipping community.
The Oxford Economics study did not investigate the maritime business service sector. It is intended to be included next year.
The following estimates are based on Crown Estate’s (2008) data.

Oxford Economics estimates that the maritime business services sector directly employed 14,000 and supported 27,000 jobs in total.
It contributed £2.1 billion directly to GDP and £4 billion in total.

According to the Crown Estate’s report, the UK’s global share of the different services is as follows: 

  • 67% of P&I Club insurance
  • 50% of global new and secondh and ship sale and purchase
  • 50% of tanker chartering
  • 30-40% of dry bulk chartering
  • 19% of ship classification.
  • 17% of world ship finance
  • 15% of marine insurance underwriting

 

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