The Business History of 22 Greek-Owned Shipping Companies: The Explanations Given by Management

Abstract

We have re-told the business history of 22 Greek-owned family shipping companies by summarizing their published CVs, since steam-period, and till recently (2009). The business nucleus here was the “island maritime family”, round a dominant father, and Captain, with…up to 5 sons. The Sea was the extension of their…land, and the place where a profession, or rather a way of life , had to be done. A strong tradition , and stronger among relatives, and with people from the same place, over many decades, predesigned the professional way that a man was about to follow. Marriages, and partnerships, among members of the shipping families, increased the power of the shipping companies. The split-ups , being in the Greek DNA, multiplied their number, so that more than 1200 international shipping companies belonged to a nation of only 8 - 10 m people. Greeks established their maritime supremacy first by being worldwide Merchants, and founders of colonies. Shipping was the alter ego of Trade at its beginning. When this twin combination ceased due to specialization, Greek shipowners applied, effectively and efficiently the “public relations”. The example of Onassis taking over the transport of Saudi Arabia’s oil, is one of the many and well-recognized, acts of public relations. Also, the Greek shipowner who took over the oil transport of Mexico is another example of “public relations” with country’s President. Niarchos S, is an additional example of applying public relations to businesses with Fiat and Ford, and by marrying…5 wives. Thanks to certain Greek shipowners and Onassis, it has been realized that the “rapid growth strategy” of a shipping company is only possible through newbuildings. With a growth financed mainly by the banks, plus economies of scale, and a co-operation with the oil companies, Greek-owned shipping became great . Greek shipowners were only defeated by two enemies: 1) the deaths, and 2) the depressions, especially that of 1981-1987. In addition, the Greek-owned shipping was supported heavily by the 107 Liberty ships “lent-leased” by USA (1947). But, Greek shipowners found ways to gain advantages out of the frequent depressions by applying only two simple principles: a) economies of scale and b) economies of lower age, by buying/selling at the right time of the shipping cycle, in an industry, where to know what the next day will bring, is entirely impossible.