---Tax and shipping mix about as well as oil and water. And nowhere is that more true than in Greece.

For over 50 years, Greek owners and operators have been exempt from tax, with their position protected by the nation’s constitution.

But with Greece needing a EUR 110bn ($132.5bn) bail-out last month from the rest of Europe and the International Monetary Fund (IMF), scrutiny is now focussed on the potential that every part of the economy has to help reduce its deficit. And that includes shipping.

As the second-largest earner of foreign income after tourism, shipping has long been a vital plank in the Greek economy, from the local cabotage trades of ferries between the Aegean islands to the global bluewater fleet. The question now is whether Greece’s unprecedented financial crisis demands a greater payback from the sector.

Defenders of the tax-free status quo leap to evidence that shipping’s effective exemption means it supports as many as 200,000 jobs in the country, bringing in around $13bn each year.

Outspoken owners such as Dimitri Lyras argue that the sector should have “sympathy and respect” from regulators and politicians since its success has been built with a philosophy “alien to the shackles of bureaucracy and state-ism”. Furthermore, owners privately warn that any change would immediately drive many offshore, potentially further deepening the country’s deficit problems.

But the pressure is growing on shipping to play its full role in supporting Greece’s rescue — and that means helping pay the bill.

Delivering a message from Greek prime minister George Papandreou, shipping minister Louka Katseli told the official opening of Posidonia that the government was determined to press ahead with “all necessary changes” to ensure a powerful and competitive shipping industry in Greece. She added that the sector needs to “contribute dynamically” to “overcome the crisis and create a better and fairer Greece”.

While many ridicule the tax threat, at least one well-known Greek owner has confided to TradeWinds that he believes it is inevitable that the socialist government will be forced to impose a new tax on shipping, due to a combiniation of pressure from the public and the IMF. Another argues that some Greek owners will regret quitting London over the £30,000 ($43,640) non-domicile charge. Compared with what may lie ahead in Greece, it would have been a small price to pay.

Already fears of a new wealth tax — among many other tax rises — have led to reports of an exodus of private cash out of the country. Arguments about shipping and tax quickly become burdened by emotion and rhetoric, especially in Greece. One Greek shipping executive asked by TradeWinds this week whether the industry should pay its fair share of tax nearly choked on his cocktail, before ridiculing the idea as like Norway taxing salmon.

Well, Norway does tax salmon fishing or farming when it is a business — it is the only way a modern democracy can work.

Perhaps the time is nearing when Greek shipping will also have to pay its way.

Published: 21:59 GMT, 10 Jun 10 | updated: 13:49 GMT, 11 Jun 10

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* Friday 11 June 2010 * by Nigel Lowry

Shipowners have no indication whatsoever of government plans to impose taxes on the industry

GREECE’s shipowning community has no indication whatsoever that the country’s government is planning to impose taxes on the industry amid desperate measures to shore up the country’s crumbling finances.

“We have been given no sign of any change,” said Theodore Veniamis, president of the Union of Greek Shipowners.

Speaking at a press conference marking the end of Posidonia, Mr Veniamis dampened feverish speculation that, in the event of changes to the industry’s current tax status, the country’s shipowners would flee Greece’s shores.

“We are fine in Greece,” said Mr Veniamis. He said that view was held by “the majority of our colleagues”.

The industry was in close touch with the ministry of economy, competitiveness and shipping, and “nothing has changed, everything is as before,” he said.

Mr Veniamis vented frustration with individual Greek owners who have been saying openly that they will shift their operations abroad if the government tampers with current tax legislation.

Shipping is tax-exempt in Greece, a status that has long enjoyed protection under the constitution.

“I do not feel the need to comment on what they say in streets and restaurants, but it would be better for them not to talk,” said Mr Veniamis.

“All these rumours are bad for the economy of our country, and they are doing damage.”

Prominent individual owners have been divided on the issue of whether the shipowning community could do more to chip in with funds to ease the country’s crippling debt crisis.

While virtually all reject the notion of taxing the industry, one or two have spoken favourably about a shipping bond to raise money for government coffers.

But another senior UGS source told Lloyd’s List that the idea of even an ambitious fund — €1bn ($1.2bn) or more — would scarcely scratch the surface of Greece’s €300bn debt mountain.

While eschewing any comment about the government’s handling of the wider economy, Mr Veniamis was scathing about the move last October by the incoming government of George Papandreou to absorb the old, standalone shipping ministry into a wider economy ministry.

This was analogous to the idea of “Saudi Arabia abolishing its ministry of petroleum”, said Mr Veniamis.

“What we want, what we have been asking for and what we are continuing to ask is the re-establishment of the ministry of merchant marine, he emphasised.

The shipowners’ leader, who admitted that the UGS had become less talkative under his presidency and only talked to media collectively “and only when we have something to say”, also voiced his disappointment with recent actions staged by seafarers to disrupt cruise and ferry sailings in protest against lifting of cabotage in the cruise sector.

He said the incursions into ports showed that the ISPS Code had not been properly implemented in Greek ports.

Mr Veniamis also spoke out against piracy, calling it “unacceptable” that crews were being put in danger.

“With more willpower from the international community it is something that can be solved very easily,” he said. As things stood, though, “ there is a long road ahead before we are going to solve the problem,” he said.

---The public / private shipping empire controlled by George Economou is vying with the privately owned John Angelicoussis group as Greece's largest operation. Economou manages some 97 ships of 11.23m dwt under one roof, while the Angelicoussis group is divided into the energy fleet, Maran Tankers / Marangas, 10.04m dwt and 49 ships and the drybulk operation Anangel which adds another 4.741m dwt and 27 ships.

According to data compiled by Naftiliaki Greek Shipping Review, Newsfront Greek Shipping Intelligence's parent, Angelicoussis and Economou top a list of 54 Greek operations which at the beginning of May were running fleets of 1m dwt ormore. This is three fleets less than at the same time 2009, but while five companies have dropped out of the list two have come in.

Further, Greece's 'tonnemillionaires' this time round between them account for 158.3m dwt and 1,601 ships. In capacity terms this is some 87% of Greece's oceangoing trading tonnage but only around 40% of the ships. Both Angelicoussis and Economou have grown their fleets in the 2009/2010 period, with Economou 20 ships and 2.7m dwt larger, while Angelicoussis is some 750,000dwt larger, with the growth on the dry side, and seven ships up overall. All Angelicoussis' ships fly the Greek flag.

Third and fourth place on the ladder are the mixed tanker / dry bulker fleets of the expanding US listed group, combination GenMar / Genco / Baltic Trading controlled by Peter Georgiopoulos, and US-listed Tsakos Energy Navigation (TEN) and privately owned Tsakos S & T. The Georgiopoulos

combination 7.74m dwt / 72 ships, had a gain of 1.4m dwt and 10 ships over the year, which led it to swapping place with Tsakos which has remained

steady at around 7.3m dwt and 74 ships.

Georgiopoulos is also chairman of NY-listed international bunkering group, Aegean Petroleum, which as part of Piraeus-based Aegean Shipping Management, has some 70 units of 889,200dwt.

Marmaras Navigation / DeltaTankers / Diamantis Diamantidis continues to diversify and with 23 bulkers and 18 tankers of 5m dwtmoves up two places to five, though the group has two fewer ships (41) this year.

The Martinos brothers, Thanassis, Dinos and Andreas / Eastern Mediterranean (20th on the list), Thenamaris (8th) and Minerva (9th), remain one of the most influential families in Greek shipping, between them running 94 ships or 12.17m dwt and are being considered among the best readers of the market.

Of the 54 largest fleets 15 companies are listed on the stock exchange of the US and one on the UK stock exchange. The Posidonia 2010 issue of

Naftiliaki features an extensive review of the Greek fleet.

---Shipping communities in London and Piraeus are closely linked and interdependent, says Epaminondas Embiricos. He gives Konstantin Tsolakis some advice to pass on to Britain’s new government

Epaminondas Embiricos stepped down last month from his position as chairman of the London-based Greek Shipping Co-operation Committee (GSCC) after 11 years. He wanted to be succeeded by a member of the “younger generation”, and his wish was granted. On 20 May the Committee elected 49-year-old Haralambos Fafalios.

“I am confident that Harry will do incredibly well,” said Embiricos when Fairplay met him at his central London office, a short walk from the British Museum. “He comes from a traditional shipping family, he is very smart and has a good set of values. Also, he will have the invaluable help of his deputies [veteran owners John Lyras, Dinos Caroussis and Dimitris Dragazis] who are an extraordinarily wise group of people.”

Embiricos was elected chairman in Sept-ember 1999, following the death of Ioannis Hadjipateras, who had been chairman since 1981. The ‘voice’ of London’s Greek shipping community for more than a decade, he is courteous and articulate, but is also known for being blunt, an attribute that has earned him as many friends as foes.

When you meet him, you immediately become aware of his self-confidence, which perhaps stems from family pride. Not only does he hail from one of Greece’s foremost shipping clans, but he is also descended from eminent politicians and celebrated literary figures, including 19th century prime minister Alexandros Koumoundouros and the Surrealist poet and writer Andreas Embiricos.

Fairplay sources suggested that behind Embiricos’s decision to step down as Committee chairman was a disagreement with the GSCC’s Piraeus counterpart, the Union of Greek Shipowners (UGS), on how to challenge the Greek government on a contentious issue: the abolition of the standalone ministry of shipping in October last year.

Somewhat shaken, the UGS adopted a wait-and-see approach. Embiricos was swift to condemn the government’s move. The abolition of the ministry, he said, “deeply saddened the GSCC, which believes the existence of a powerful and autonomous shipping ministry is critical to the success and development of Greek shipping and the Greek registry”. He urged Greek shipping to brace itself for long and painful delays when it came to decision-making. Allies said his prompt and sharp reaction indicated leadership skills and patriotism; critics described it as rash and undiplomatic.

However, Embiricos can take some credit for persuading a succession of shipping ministers to introduce measures to boost the flag’s competitiveness. These included a more attractive tonnage tax regime and reasonable requirements as regards the number of Greek nationals required on Greek-flagged vessels.

His 2001 pledge to hoist the galanolefki on a number of his ships was seen by many as a vote of confidence in the Greek registry and a turning point in the long and difficult path towards its restructuring. The tendency until then had been for shipowners to complain to the Greek government about the registry’s mishandling – it had not occurred to them that offering encouragement and suggestions would be more constructive.

“Now the Greek registry has grown, it must not be allowed to decline again, primarily because we can only create Greek officers on Greek-flagged vessels,” he warned. “Moreover, a large Greek flag enables Greece to have influence in maritime affairs both within the EU and the IMO.”

Despite his alleged spat with the UGS, Embiricos insists that the Committee cannot do without its Piraeus brethren. “The Committee and the UGS are complementary, as are London and Piraeus as maritime centres. The Committee remains well-respected by the Greek government – whenever Greek officials visit London, they never fail to visit us. There is no doubt that Athens values our view.”

Embiricos believes it’s vital that London, the Committee’s home since 1935, remains a leading maritime centre. “London has a tremendous depth of expertise and is home to many important players: brokers, banks, lawyers and average adjusters – all of them global leaders. It has a huge wealth of shipping know-how, which it is happy to share. The loss of this know-how would have a negative impact not only on Piraeus, but also on world shipping.”

For London to remain a prime player, he added, it is essential that “Brussels becomes shipping-friendly again”, as was the case when Britain’s Neil Kinnock was EU transport commissioner. “Europe should not be allowed to lag behind the Far East, which presents a benign but huge challenge. The Asians are intelligent, hardworking people, and have a series of advantages. They have their yards, low crew and management costs, and they control most of the cargoes.

“It is terribly important that Europe keeps up with Asia – otherwise we will lose shipping completely. If that happens, not only will we lose our maritime clusters and employment, but we will rely completely on Asian ships to carry our goods. That may not be the best idea in the long-term.”

As long as Europe preserves its key role in shipping, Embiricos is confident that London will remain an important maritime centre.

Closer to home, Embiricos hopes that Britain’s new coalition government “will not do anything silly with the law on non-domicile taxation” and thus make an already difficult situation worse. “[Coalition leaders] David Cameron and Nick Clegg have said they will review the law. If they make it worse, then forget it. Whatever confidence London’s shipping community is left with will evaporate. And to think that, pre-tax, London was drawing in new shipping interest. That may happen again. For all you know, London Greeks may return from Piraeus. But for that we require a non-threatening and stable fiscal regime.”

Embiricos believes that the UK government could take advantage of the Greek financial crisis and lure the Greeks back to London. “But we need both London and Piraeus to be strong. I see synergies here – not competition.”

The non-domicile tax, introduced in 2008, may have triggered an exodus of London Greeks, but the GSCC’s membership has hardly dropped. “Some of the principals of London Greek offices have moved to Piraeus but remain Committee members. The exodus hasn’t affected our numbers and with good communications we are in touch with our Piraeus members every day. For example, a Committee vice-chairman has moved to Greece but has kept his position. He comes to our meetings every month and benefits from both centres. Travel is easy. So, for a Greek owner to have a say in London’s maritime affairs, his permanent presence here is no longer essential.”

In the spotlight: Epaminondas Embiricos

Born: 1943, Athens, Greece, the son of shipowner and Member of the Hellenic Parliament George E Embiricos (1901-1980)

Previous position: Greek Shipping Co-operation Committee chairman, September 1999-May 2010

Education: # Massachusetts Institute of Technology, Cambridge, MA, USA # Philips Exeter Academy, USA

Family: Married Angela Pittas, daughter of London Greek owner, Nikolaos Pittas, in 1977; they have two sons, George (b 1978), who is a GSCC member, and Nicolas (b 1980)

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Monday, 7th June 2010

Nick Anstee, Lord Mayor of the City of London.

MANY of the headlines about the UK and Greek economies have, perhaps understandably, painted a bleak picture of harsh financial realities in both countries.

Clearly the UK Government and the Greek administration face a period of painful fiscal tightening as they balance the books and reassure international investors.

Therefore, in this challenging period, the top performing industries in both countries must help drive recovery forward and safeguard future prosperity.

Taking Greece first (I am in Athens today, leading a City business delegation), it is shipping that has long been the globally-competitive jewel in the Greek crown. It contributed 5.7 per cent of GDP in 2009 and Greece’s fleet totals around 4,000 vessels – more than 16 per cent of the world’s carrying capacity.

Here in the UK, the City’s financial and professional services will be crucial to our economic prospects as part of a wider recovery over the coming years.

At first glance there seem to be little overlap between these two industries. But as an island state with a long seafaring history, it should come as little surprise that the UK is a world leader in maritime-related services.

The City is a one-stop shop for maritime services, able to provide all the specialist financing needs required by ship owners and operators.

In 2009, UK-based banks lent the Greek shipping sector more than $13bn, around a fifth of its total lending requirements, while the UK marine insurance sector pulled in $4.7bn in premiums and an additional $1.6bn in gross P&I premiums and ship-broking income.

It is not just finance that provides the basis for this partnership. Lloyd’s Register classifies 28 per cent of the Greek fleet and the country is currently the fourth largest market for London’s legal community.

But despite our position as the leading provider of maritime services to Greece, we can not afford to be complacent. That is why I am here at the international Posidonia shipping conference in Athens, working to strengthen links with the Greek ship-owning community and ensure key industry figures continue to see London as a second home.

I am also scheduled to hold discussions with the Greek Prime Minister, Finance Minister, and the Minister of Economy, Shipping and Competitiveness.

Even in these difficult times, Greece remains a key partner for the UK with bilateral trade currently worth nearly $3bn each year.

With both ends of this relationship facing significant economic challenges, it is in all our interests that policy makers and practitioners in both countries work together even harder to maximise trading opportunities and open doors to two-way businesses.

Nick Anstee is Lord Mayor of the City of London.

Crisis in Greece. Defaulting on debt? Riots! Those visiting Posidonia would never know we are living in such a turbulent time.

As we all know Posidonia takes place every two years. The prior one in June 2008 was before the financial and shipping crisis hit hard. The parties were big, the exhibition impressive, the mood buoyant. In June 2009, many were thankful it was not a Posidonia year.

So what of Posidonia 2010? Well the mood is remarkably good. The parties are fun and the visitors are here in big numbers. Noticeable is that most bank functions are mainly clients only as opposed to all and sundry. Company functions vary from discrete to enormous.

The Posidonia Exhibition is bigger than ever before in terms of exhibitors. Some country pavilions however have downsized.

The resounding comment: thank goodness shipping is offshore. It isn't fun being onshore Greece at the moment.

---Greece’s maritime community upbeat despite economic woes

Piraeus-based marine trading, project development and spare parts major INTRA MARE has announced two significant deals during this week’s Posidonia 2010, the 22nd edition of the world’s biggest international sea transportation event being held at the Hellenikon Exhibition Centre in Athens’ waterfront.

According to managing director George Gerassimou, INTRA MARE has just agreed terms with Danish marine equipment specialist Sondex to become the Scandinavian company’s agent for the Greek marine market. While specific details as to the precise nature of the agreement will be unveiled next week in a joint statement of the two partners, Gerassimou said that the deal includes the exclusive representation of Sondex’s state-of-the-art plate coolers and heaters.

Also on the Posidonia 2010 floor, Gerassimou revealed that Scanjet Macron, a marine and offshore systems solutions provider which is represented in Greece by INTRA MARE, has won a major contract with Korea’s Daewoo Shipyards to provide cargo control systems for a number of tankers ordered recently by a Greek ship owner. No further details were made available but an official announcement is also expected in the coming weeks.

INTRA MARE is a naval architecture technological & trading company with activities extending over a wide spectrum of services including representation, design, consultancy, and trading. The company represents exclusively a number of leading marine equipment manufacturers and at the same time, supports its extensive sales organization through its Project Development Division.

Gerassimou is upbeat about the state of Greece’s shipping industry despite the economic downturn. “While there is no denying that global shipping showed significant signs of fatigue between 2008-2009 with a decrease in new ship building orders which negatively impacted the whole maritime community, during the first half of this year we have seen a notable increase in our sales of up to 30 per cent compared to the same period of 2009,” he said.

“And judging by the overwhelming participation of exhibitors and visitors in this year’s Posidonia we project a quick recovery for the international marine equipment sector spearheaded by the introduction of the latest products and technologies showcased here,” he added.

Other Greek shipping industry officials participating at Posidonia 2010 are also cautiously optimistic about the future of the marine industry. Dimitris Vranopoulos, Managing Director, Marine Plus, an Athens-based agent of Asian and European shipyards, believes that while the downturn has slowed down newbuilding activity, shipyards in China and other key hubs are readjusting their operations to accommodate increased demand for the ship repair and conversion sector.

“We remain optimistic about the future and have had a number of meetings with potential clients who have openly said that they are planning orders in the near future. We will continue our discussions with them and hope that we will soon convert this initial interest into tangible business,” said Vranopoulos.

“Our core business always was and still is shiprepair and conversion. Most of our business is conducted in China, where we have been active since 1992. China accounts for around 80% of our annual shiprepair/conversion turnover, by far the largest portion. We are also active and exclusively represent shipyards in Hong Kong, the Black Sea, Med region, Thailand, Panama, Kuwait, US East coast and Europe.”

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Posidonia official Theodore Vokos, believes that the event is a natural forum for companies to network and identify common grounds for partnerships and co operations. “Every two years many of our exhibitors announce significant business deals as a result of their participation in Posidonia. We are extremely proud to be able to offer a forum which is conducive to business and forges stronger ties between members of the global marine industry,” he said.

Posidonia 2010 is sponsored by the Ministry of Economy, Competitiveness and Shipping, the Municipality of Piraeus, the Hellenic Chamber of Shipping, the Union of Greek Shipowners, the Greek Shipping Co-operation Committee, the Hellenic Shortsea Shipowners Association, the Association of Greek Passenger Shipping Companies and the Union of Marine Enterprises.

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$0.15 per share dividend payable July 15, 2010

ATHENS, GREECE - June 8, 2009 - Tsakos Energy Navigation Limited (TEN) (NYSE:TNP) announced today that at its Board Meeting on Friday June 4th, it was decided to change the Company’s dividend policy from semi-annual payments to quarterly payments. Since initiation of cash payments in 2002, following the New York Stock Exchange (NYSE} listing, TEN has declared and paid 16 consecutive semi-annual dividends including the most recent payment of $0.30 in April, 2010.

The first dividend of $0.15 per share will be paid on July 15, 2010 to shareholders of record on July 12, 2010 and will trade ex-dividend on July 8, 2010.

The basis of dividends will continue to target a payout ratio of 25% to 50% of net income subject to maintaining an appropriate level of liquidity as a function of a prudent and strong financial position. Each April, the Board of Directors will give consideration to the declaration of a supplementary dividend.

D. John Stavropoulos, Chairman of the Board, said “We believe this modification will better serve the objectives of our shareholders, broaden our investor base and help support an improved valuation of our common shares.”

Including the above distribution, TEN will have distributed $8.325 per share in dividends to its shareholders since the Company was listed on the NYSE in March of 2002. The listing price was $7.50 per share taking into account for the 2-1 share split of November 14th, 2007.