Maritime industry

The Lithuanian transport sector is one of the most dynamic and developing branches of Lithuania's economy. Together with the logistics services the sector they account for 13% of the country's gross domestic product and employs about 4 per cent of total labour force. The annual contribution of Lithuania's navigation to the gross domestic product of the country totals over LTL 670 million. One working place of a sailor creates four-five working places on the shore - in such areas as ship repairing, loading, ship stevedoring, provision and infrastructure services. This is one of the few sectors of Lithuania's economy where exports exceed imports - it is a significant engine to the country's entire economy.

      All in all, 155 ships whose total tonnage was 436 934 tons gross were registered with the Register of Seagoing Ships of the Republic of Lithuania as of the beginning of 2008. The age of the majority of ships of this feel is eighteen - twenty years. There are about 2000 seafarers being employed on the national fleet, other part – somewhere about 6250 served on foreign ships.Today ships sailing under a Lithuanian flag account for 0,20 per cent in the total tonnage of the European Union.

    Throughout the last two years, the Lithuanian Shipowners Association and Government of the Republic of Lithuania, particularly the Ministry of Transport and Communications, has paid more attention to the development of the national shipping sector focused on two main fiscal measures: Tonnage tax system and reduction of Social contribution taxes. Scheme of Tonnage Tax system was approved by Government and on 3^nd May, 2007 by Parliament and shipping companies can already enjoy this system for 2007 fiscal year.

Three years ago Lithuanian Government and stakeholders came to a mutual agreement, suggesting reducing Social contribution taxes. Accordingly on 22^nd of March, 2006 the endorsement of European Commission has been received. 26^th of June, 2007 the Lithuanian Parliament has voted in favour of reductions, but Lithuanian President put a veto on the law’s amendment. The main argument, that one social group of labour cannot be exclusive from others in respect of social contribution, is still strong.

    The Lithuanian Governmental Strategic Committee, which approved guidelines on the basis of study on the “Relevance and Economic Impact a Modern Shipping Policy on Lithuania’s Economy” yet demands continuing improvement of reputation of the Lithuanian flag, that the Lithuanian fleet would become a competitive branch of EU industry and an integral part of Lithuania as a maritime state.

     Altogether, the year 2007 was profitable for national main shipping companies, which slightly increased their ships’ tonnage, renewal fleet and seafarers operation life as well.

    In the spring of 2009 the Lithuanian Shipowners' Association will celebrate the tenth anniversary of its founding. Today it includes 10 members which are the country's largest and most efficient marine companies.