Short Sea Shipping

Short Sea Shipping is Simply defined as as the movement of cargo by sea without directly crossing an ocean. It can also be referred to as Coastal Shipping. Short Sea Shipping also involves Domestic fleets doing coastal or inland trade.

Short sea shipping is not restricted to short distances. For instance, according to the European definition, it refers to coastal transportation linking the European ports with adjacent countries (including the entire Mediterranean Basin: shipping from Gothenburg to Istanbul is thus considered to be short sea shipping).

Short sea transport makes use of various mode of transport. The most used combination is a short sea vessel with a truck. Other possibilities are short sea shipping with rail and inland shipping.

KEY POINTS: Short Sea System may varies by Countries.

CLASSIFICATION OF SHORT SEA SHIPPING

Short sea shipping is divided into very different types of flows using different techniques:

  1. Transportation of bulk cargo: Particularly for crude and refined petroleum products.
  2. General cargo: This is split into two main transportation techniques, which are; Lo-Lo and Ro-Ro.

a. Lo-Lo (load on – load off):  Involves vertical handling for the loading and unloading of ships and thus concerns containers.

b. Ro-Ro (roll on – roll off):  Involves horizontal handling for the loading and unloading of road trailers or complete lorry-trailer combinations onto and off ferries via ramps.

 Lo-Lo forms a link between the intercontinental and intra-continental transportation of maritime containers (which are used for an increasingly wide range of products).

 

For more information on Short Sea Shipping, visit the ‘ask a question’ page .

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Registering a ship

What are the main purposes for registering a ship?

Originally the purpose for registering a ship was meant to control ships carrying cargo in European seaborne countries, it was used to make sure ships were being built in the local country, with crews predominantly of the local country.

Since then, ship registration has been used to document ships for ownership. Documentation provides definite evidence of nationality for international purposes and provides financing opportunities with the availability of preferred mortgages on documented vessels.

 The main types of ship registries.

1.Traditional or national registry. This is a registry that is open only to ships of its own nation.

2. Open registries. Theses are Registries that are open to foreign-owned ships.

The organization which actually registers the ship is known as its registry. Registries may be governmental or private agencies. In some cases, such as the United States’ Alternative Compliance Program, the registry can assign a third party to administer inspections.

How can the registration of a ship be terminated?

The registration of a ship can be terminated, if an application for transfer or transmission of a registered  ship or shares in a registered ship ,the Registrar is not satisfied that the ship  shall remains eligible to be registered.

Registration needs to be terminated for a ship registered under Part B if one of the following occurs:

  • the ship is sold
  • the ownership changes other than by way of a sale
  • the description of the ship changes (eg from pleasure to commercial).

 

Ways of acquiring ownership of a ship?

Ships can be owned by either one person or co-owners. Because of the enormous cost of merchant vessels, the majority are held by more than one owner. A bill of sale is the ordinary evidence of title to, and ownership of, a vessel. Between co-owners, the right to control and use the vessel is generally reserved for the majority interest. In the event that co-owners absolutely cannot come to an agreement on how to use the vessel, one or more of them may obtain a court decree for sale of it. In general, however, a part owner shares in the profits and expenses from use of the ship in proportion to her interest.

For example, all the ships in the U.S. merchant fleet are registered in the United States and completely staffed by U.S. citizens. Because of the higher labor costs associated with employing U.S. personnel, many ships are registered in other countries to avoid this labor requirement.

KEY POINT: Flag state denotes the government whose flag the ship is entitled to fly and by extension the department of such country responsible for the administration of ships and shipping activities.

ARTICLE 94,UNCLOS: United Nations Convention on the Law of the Sea of 10 December 1982

Some of the conventions are stated below;

1. Every State shall effectively exercise its jurisdiction and control in administrative, technical and social matters over ships flying its flag.

2. In particular every State shall:

(a) maintain a register of ships containing the names and particulars of ships flying its flag, except those which are excluded from generally accepted international regulations on account of their small size; and

(b) assume jurisdiction under its internal law over each ship flying its flag and its master, officers and crew in respect of administrative, technical and social matters concerning the ship.

3. Every State shall take such measures for ships flying its flag as are necessary to ensure safety at sea with regard, inter alia, to:

(a) the construction, equipment and seaworthiness of ships;

(b) the manning of ships, labour conditions and the training of crews, taking into account the applicable international instruments;

(c) the use of signals, the maintenance of communications and the prevention of collisions.

4. Such measures shall include those necessary to ensure:

(a) that each ship, before registration and thereafter at appropriate intervals, is surveyed by a qualified surveyor of ships, and has on board such charts, nautical publications and navigational equipment and instruments as are appropriate for the safe navigation of the ship;

(b) that each ship is in the charge of a master and officers who possess appropriate qualifications, in particular in seamanship, navigation, communications and marine engineering, and that the crew is appropriate in qualification and numbers for the type, size, machinery and equipment of the ship;

(c) that the master, officers and, to the extent appropriate, the crew are fully conversant with and required to observe the applicable international regulations concerning the safety of life at sea, the prevention of collisions, the prevention, reduction and control of marine pollution, and the maintenance of communications by radio.

5. In taking the measures called for in paragraphs 3 and 4 each State is required to conform to generally accepted international regulations, procedures and practices and to take any steps which may be necessary to secure their observance.

6. A State which has clear grounds to believe that proper jurisdiction and control with respect to a ship have not been exercised may report the facts to the flag State. Upon receiving such a report, the flag State shall investigate the matter and, if appropriate, take any action necessary to remedy the situation.

7. Each State shall cause an inquiry to be held by or before a suitably qualified person or persons into every marine casualty or incident of navigation on the high seas involving a ship flying its flag and causing loss of life or serious injury to nationals of another State or serious damage to ships or installations of another State or to the marine environment. The flag State and the other State shall cooperate in the conduct of any inquiry held by that other State into any such marine casualty or incident of navigation.

                 Essence of UNCLOS.

Once the ship is registered, it has on board the official documents attesting nationality and it is duly flying the flag of the country in which it is registered, it can be said to be under the jurisdiction of that country and when the ship is on the high seas it is, according to Articles 6 and 92 of the 1958 HSC and UNCLOS 1982 respectively, under the exclusive jurisdiction of that State20. This, save for instances expressly provided under these conventions or any other international treaty, including instances provided for by the 1958 HSC and the UNCLOS 1982 include inter alia piracy, slave trading and hot pursuit.

By “jurisdiction” it is meant that the flag State has the power to prescribe rules of conduct, to threaten sanctions and to enforce sanctions with regard to the ship users. Article 5(1) of the 1958 HSC and Article 94 of the UNCLOS 1982 respectively lay down that the State is to “effectively exercise its jurisdiction and control in administrative, technical and social matters over ships flying its flag”. Article 94 of
UNCLOS 1982, although non exhaustive, is more prescriptive than the related provisions of the 1958 HSC as it lays down explicitly some of the administrative, social and technical duties to be fulfilled by States as part of flag State implementation. The extent, the ability and the effectiveness through which flag States discharge the duties laid down
under Article 94.

Besides, It is the role of the flag state to enforce standards set forth in international maritime conventions to which the state is a party.
Application and enforcement is achieved not only through incorporation of international law into the domestic legal system, but also by ensuring an adequate regulatory apparatus and maritime authority with enough staff to effectively enforce standards.

In this way, flag states are the first and primary means of regulating and overseeing shipping standards promulgated on both the domestic and international levels.
Under Article 94 of UNCLOS, flag states are obligated to perform the following duties:
1) Assumption and effective exercise of jurisdiction over administrative, technical and
social matters aboard its ships both at sea and through regular inspections
2) Maintenance of a ship register
3) Conformity with international regulations
4) Investigation of all reports of lack of proper jurisdiction and control by that flag state
5) Inquiries into all casualties and incidents on the high seas involving one of its ships and cooperation with inquiries held by other states regarding such incidents.

Negotiations in Chartering (Shipping)

What is Chartering:  Chartering in shipping is the hiring of a ship and crew for a voyage between a load port and a discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port costs (excluding stevedoring), fuel costs and crew costs. The payment for the use of the ship is known as freight.
charter party is the contract by which the owner of a ship lets it to others for use in transporting a cargo. The shipowner continues to control the navigation and management of the vessel, but its carrying capacity is engaged by the charterer.

 

The negotiations between a charterer and a ship owner is in terms and conditions, or based on terms and conditions, some of which are written below.

1. Contractual Partner
Contractual partners are the  ship Charter Operator or ship owners and the Charterer – as mentioned in the Contract. The ship Charter Operator is the Owner of the ship chartered by the Charterer or a person authorised by the latter.2. Acceptance of the Contract and its Conditions
a) The Agency is authorised to set up this Contract as representative of the Charter Operator and duly sign it.
b) The Charterer confirms that he has read the Contract and that he understood the nautical terminology used therein. Moreover, the Charterer agrees with the General Conditions of the Contract including the special characteristics of chartering a craft and with this type of sportive activity.3. Charter Fee
The charter fee encompasses the use of the vessel and its inventory. Extras and incidental expenses will be calculated separately and will not be taken into consideration in case of possible refunding of charter costs. The following items are not included in the charter fee: Port charges, fuel, gas, water and all expenditures for measures which are required for the proper operation of the craft during the trip. Obvious mistakes in calculating the charteer fee or inadequacies referring to some of the terms in the Contract do not justify exiting from the Contract; rather, corrections may be duly undertaken, based on the current list of fees and the current contractual conditions of the agency. Irregularities in equipment or gear (non-correspondence with inventory or equipment lists supplied to Charterer) do not authorise the Charterer to make any deductions – provided safety and operation of the craft as such and functioning equipment are guaranteed.

4. Journey to Location of ship Check-in
The journey to the location is not part of the Contract. If the start of the journey is delayed because the Charterer or a member of the crew arrives late, there shall be no refunding of costs. Charterer and crew are aware of the fact that they are leasing an “instrument” to exercise boating and that the terms agreed on differ from laws and regulations governing the tourist sector.

5. Charterer´s Exiting from the Contract
Should the Charterer for any reason whatsoever cancel the charter, the Charterer can after making a prior agreement with the organization,  find another person to take on its rights and obligations. Should the Charterer fail to find a third party to replace him/her, the cancellation costs shall be deducted as follows:
– 50% charter price if a reservation has been cancelled more than a month prior to the first charter day.
– 100% charter price if a reservation has been cancelled less than a month prior to the first charter day
a) The period of validity of the Contract can only be changed in agreement with the ship charter organization and according to the existing possibilities.
b) Cancellation by the Charterer up to four weeks before the start of the journey: cancellation fee depending on the payments already made. After this deadline the full amount has to be paid. It is highly recommended to the Charterer to take up a special insurance in case of cancellation.
o If there is a possibility to recharter the craft for full week, (either in part or in full), 20% of the charter fee will be withheld to cover relevant expenses. If rechartering is just partial and not for full week, 20% of the charter fee + pro rata of remaining charter will be withheld. The remaining sum will be refunded to the Charterer by the ship owner.
c) Defects, incorrect recordings of instruments or other problems with gear or equipment do not entitle the Charterer to either refuse check-in, stop the trip or raise financial claims – provided correct navigation is possible by applying classical navigation methods, such as position fixing by bearing, dead-reckoning navigation etc. and if safety of ship and crew is guaranteed by good seamanship.

6. Check-in and Check-out of ship
a) The ship owner is obliged to properly instruct the Charterer or the person nominated by him (Skipper) about all technical details concerning gear and equipment, using a check- or inventory-list. Trial trip may also be effected. By signing the checklist the Charterer/Skipper confirms that he has taken over the craft in good condition, clean, with full tanks (fuel, water) and fully functioning gear and equipment. Possible defects, damages or missing parts of gear and/or equipment must be laid down in writing.
b) The Charterer may refuse check-in if safety standards do not comply with national rules and regulations or if hull, bonding deck to hull, rig, sail or steering gear are damaged to such an extent that safety of both ship and crew can no longer be guaranteed. In this case item 6a comes to bear.
c) The shio owner may refuse to hand over the ship if:
• the fee has not been fully paid
• deposit has not been made or replaced by an insurance
• necessary documents are missing or insufficient (no license or a license not valid for the chartered craft, etc.)
• during the process of check-in or during a trial trip it turns out that the Charterer does not have the required qualification for this job.
d) in the latter case or if there are licensing problems, the journey may be started with another skipper , expenses paid by the Charterer.

7. Delayed Check-in Procedure
a) If the ship owner cannot supply the craft or ship or an appropriate replacement (meaning a type similar in dimensions, gear and equipment) and the delay exceeds ¼ of the total charter time or a maximum of three (3) days, the Charterer has the right to withdraw from the Contract. In this case payments already made will be refunded to him. No further claims may be raised.
b) If it is an established fact before the start of the trip that neither craft nor replacement will be available on the agreed date, the ship owner shall be obliged to inform the Charterer as soon as the former knows the facts. In this case both parties may withdraw from the Contract before the assumed start of the trip. Payments made by the Charterer will be refunded as above. No further claims may be raised.
c) If check-in time is delayed by the ship owner for reasons he is responsible for, the Charterer will get a pro rata refund from the ship owner
• provided either the check-in procedure had originally been agreed to take place in the second part of the day including an overnight stay on the craft or ship.
• or if a replacement and/or actual check-in has not occurred until noon the next day the latest
• or if the check-in of the ship had originally been agreed to take place during the first part of the day but in reality was delayed for more than 12 hours.

Key Note: A skipper is the captain of a Ship.

8. Insurance and Deposit
The chartered yacht is insured against third party damage, fire, lightning, explosion, theft or robbery or damage caused by natural disasters, marine and collision risks, and against any loss or damage except equipment expressed in this contract.
The financial liability of the client (charterer) for loss or damage caused by him or a crewmember is limited with the agreed deposit. Agreed deposit can also be insured by the insurance company.
Exceptions are mentioned in this contract.
a) The insurance premium for the ship chartered is included in the charter price or separately charged as extra costs.
b) The insurance does not cover accidents of crew members, losses or damage to their personal belongings. We recommend taking up a special insurance for this purpose.
c) If the insurance comes to bear in case of damage, terms state that the damage had not been caused deliberately or by gross negligence or that the charterer did not set a behavior, which release the insurer to fulfill its contractual obligation.
It is expressly stipulated that in case of gross negligence or deliberate act the liability of the Charterer is not limited by the deposit. The Charterer may be forced to pay the full sum of the damage.

9. Use of the ship, Obligations, Damages
a) The Charterer agrees to navigate the craft with special consideration of good seamanship and careful observation of all legal regulations and provisions as applicable in all the countries visited
b) The Charterer  nominated by the Charterer are committed
• not to accept more than the maximum number of persons permitted on board and to inform the ship owner and the relevant authorities about any changes in the crew
• not to allow the ship to be used for transporting passengers nor for commercial fishing nor for any other gainful activity
• not to take part in races without the express agreement of the ship owner and not to recharter the ship.
• not to use the ship for towing other ships or to be towed or rescued by other ships except in cases of emergency; should such an emergency arise, orders have to come from the ship owner(or a person authorised by him). Should this not be possible, the Charterer has to establish contact with the owner of the other vessel and come to an agreement about costs of towing or other rescue operations before help is accepted.
• to write a logbook in which the following items have to be recorded in chronological order: course, maneuvres, logs, proper handling of sails/engine, positions, checks, maintenance and repairs, important events or observations (accidents)
• no to let the engine run if the ship sails in a sloping position and to use the engine only as long as it is necessary; sails should be adapted to the rig and to the existing wind forces
• to leave a protected harbour only if the principles of good seamanship allow this
• to leave unsafe anchorage places or moorings if the weather forecast, the existing weather conditions or the foreseeable development makes it necessary.
• to take care that while the ship is anchored or moored danger to the craft has to be recognisable at all times, thus allowing measures to be taken to avoid danger.
c) If there is damage on the craft due to material wear, the Charterer has to arrange for a replacement of the parts or repair as instructed by the  ship owner or his deputy. If neither can be reached, Charterer  are authorised to organise repair or replacement – provided the amount does not exceed 100 Euros. This sum will be refunded at the end of the journey after submitting the bill except if the damage is due to incorrect operation of the ship, faulty or negligent handling by Charterer or the crew. Parts that had to be exchanged are not to be disposed of. If the craft or ship has to stay in port because of repairs, the Charterer is not entitled to raise any claims if the delay does not exceed ¼ of the entire charter period. Otherwise the Charterer has to be reimbursed on a pro-rata basis. There are no further claims to be raised.
d) In case of major sea damage or accident, possible delay or loss of maneuverability of the craft, the ship owner has to be informed at once. The Charterer has to undertake everything in his power to reduce the effects as well as to avoid consequential damage (for instance breakdown, etc.).In concerted agreement with the ship owner, the Charterer has to organise the necessary repair work, to document all the facts, to monitor the repair work and to negotiate price and payment. Moreover, the Charterer is obliged to keep a record of the details of the damage and – provided there are claims of third parties – to have all the data confirmed by the relevant
authorities. The Charterer may be obliged to pay for the entire costs if the aforementioned conditions are not properly adhered to. The Charterer is fully liable for all direct and consequential costs such as confiscation of the ship if it is within the scope of responsibility of the Charterer or members of the crew.
e) If there is reason to assume that the ship is damaged in the part under water, the ship has to be navigated to the nearest port where the services of a diver must be engaged, the supply of a crane organised or a slip up arranged. The costs have to be borne by the Charterer.
f) Theft of the ship or of part of the gear or equipment has to be reported to the nearest police precinct
g) Animals may be taken aboard only with the express permission of the ship owner.

 

 

Charter party.

Charter Party.

A charter party is a document of contract by which a shipowner
agrees to lease, and the charterer agrees to hire, a vessel or all the cargo
space, or a part of it, on terms and conditions forth in the charter party. If permitted to do so by the terms of charter party, they may enter into subcontracts with other shippers.

It Is the contract between the owner of a vessel and the charterer for the use of a vessel. The charterer takes over the vessel for either a certain amount of time(a time charter) or for a certain point-to-point voyage (a voyage charter).

Types of Charter Party

The main types of charter parties are Bareboat Charter Party (sometimes called a Demise Charter). Time Charter Party and Voyage
Charter Party.

1. Bareboat Charter Party. For this type of charter,  shipowner
leases his entire vessel and the charterer has the responsibility of
operating it as though it were his own vessel. As the implies, the
bare vessel is chartered. The shipowner has, for the period covered by
the charter party, lost control of his vessel. The charterer pays all
expenses: fuel, stores, provisions, harbour dues, pilotage, etc. and
employs and pays the crew. There may, however, be a clause in the
charter party that the master and the chief engineer must be approved by the shipowner. The charterer is responsible for the upkeep, preservation and safety of the vessel. Before delivery to the charterer the vessel is surveyed by representatives of both parties and the same is done on redelivery.

2. Time Charter Party: A time charter party is a contract whereby the lessor places a fully equipped and manned ship at the disposal of the lessee for a period of time for a consideration called hire. The lessor may be the ship owner or demise charterer and the time charterer will be the lessee. The hire is payable at specified intervals during the term of the charter. On the other hand, a “time charter for a trip” is a time charter for a particular voyage or voyages. In such a case, the lessor places the fully equipped and manned ship with the lessee till the completion of the voyage. In such charter, hire is paid at periodic

 

3. Voyage Charter Party: This is a charter party for the carriage of a full cargo, not for a period of time, but at a stipulated rate per ton, for
one voyage only, between named ports to be named on arrival in a given
area. It is a frequently used charter party of which there are many
varieties, and most commodities and trades have a particular type to suit
their purposes. Shippers of large quantities of bulk cargo such as
phosphate, coal, grain, etc., have charter parties with special titles such
as “Fosfo”, “Americanized Welch Coal Charter Party”, “Baltimore
Grain Charter Party”, etc.
In a voyage charter party the charterer assumes no responsibility
for the operation of the vessel but generally pays stevedoring expenses in and out. A statement to that effect will be included in the charter party.

 

For More Information or questions,  visit ‘ask a question’ page.

OCEANOGRAPHY

What is Oceanography? 

Oceanography, the study of all aspects of the oceans, is a very complex discipline, and many  terms have been applied to describe its components. Marine Science is considered a synonym for Oceanography.

Oceanography is the science of the world’s oceans. It is an incredibly diverse field.

OCEANOGRAPHER: 

Anyone who studies oceanography is known as an OCEANOGRAPHER. Oceanographers use science and mathematics to study and explain the complex interactions between seawater, fresh water, polar ice caps, the atmosphere and the biosphere. Their aim is to understand and predict how the oceans work, as well as working out how to make the most efficient and sustainable use of its resources.

Types of oceanographer

There are four main types of oceanographer:

  • physical oceanographer – studies the properties of currents, waves, tides and ocean circulation;
  • chemical oceanographer – determines the chemical composition of sea water and sediments;
  • biological oceanographer – studies marine animals and plants and how organisms interact with their environment;
  • geological oceanographer – examines the seabed, including the rocks and minerals.

 

FUNDAMENTAL CONCEPTS OF OCEANOGRAPHY

The fundamental concepts of Oceanography have been divided into four groups that, taken  together, apply to or cover all of the major processes within the oceans.  The four groups are aligned with four major academic sciences: physics, chemistry, biology, and geology.

1.Physical oceanography emphasizes the circulation of ocean water at all depths and all time-and-space scales. It is concerned with the distribution of the Sun’s heat, the effects of prevailing and occasional winds, the impact of tides, and frictional and other interactions at the ocean’s boundaries. Ocean-atmosphere interaction and dynamics also play a major role in the study of ocean physics, and theoretical principles of fluid dynamics are readily transformed to the study of the ocean, the most massive accumulation of fluid on the Earth’s surface.

2. Chemical Oceanography, sometimes called Marine Chemistry, considers all of the dissolved and particulate components in the ocean that might become involved in chemical reactions, both biologically influenced and biologically independent, on virtually all time scales from
nanoseconds to millions of years.

Some of these components are: inorganic ions like magnesium
or chloride that exist in high concentrations, minor or trace substances like nitrate or iron that are quite reactive on short time scales, various particles like biological organic debris or minerals, dissolved atmospheric gases like oxygen or carbon dioxide, and stable and radioactive isotopes like carbon-13 or tritium that provide time clocks for or details of chemical processes.

3. Biological Oceanography, sometimes called Marine Biology, is the study of everything in the sea that has characteristics of life, from viruses to whales. It considers the nature of their interactions, often referred to as marine food webs, and the exterior physical or chemical
influences on those interactions. Virtually all of the established aspects of biology, such as ecology and molecular biology, are applied in some fashion to the study of biological oceanography, and some of the most interesting and critical biological questions are in fact marine. The ocean is by far the largest ecosystem on the planet!

4. Geological Oceanography, sometimes called Marine Geology, covers a vast range of time and space scales since it considers processes that occur in minutes over millimeter-scale distances as well as processes that effect entire ocean basins and continents over time spans of millions of years. Its focus is more on the lower boundary of the ocean, the sea floor, than ocean water perse, but processes in the water like the growth of organisms that make shells have considerable
impact on the geology of the sea floor.

The use of stable and radioactive isotopes has been especially beneficial in sorting out geological history and processes, but conventional
sedimentology is a mainstay of the study of the materials that pile up on the sea floor.

OCEANOGRAPHY RESEARCH VESSELS:

Oceanographic research vessels carry out research on the physical, chemical and biological characteristics of water, the atmosphere and climate, and to these ends carry equipment for collecting water samples from a range of depths, including the deep seas, as well as equipment for the hydrographic sounding of the seabed, along with numerous other environmental sensors.

Vessels are arguably the most critical element in any ocean-going venture. Once a ship leaves the safety of its dock, it is an island unto itself on the open seas, its crew at the mercy of the waves. Any ship, from a 15-foot sailboat to a 1,500-foot tanker, must carry all of the food, water, fuel, and equipment that its crew will need to live safely for the duration of the journey.

In the case of research vessels, the ships must also be equipped with special tools and technology that allow scientists to explore ocean environments. Research vessels are highly advanced mobile research stations, providing stable platforms from which explorers can deploy equipment, divers, and submersibles. In addition, these vessels carry state-of- the-art electronics, computers, and navigational and communications systems.

 

 

For more information on oceanography, visit  ‘ask a question’ page.

TYPES OF SHIP REGISTRIES

1. TRADITIONAL CLOSED REGISTRY

 A registry that is open only to ships of its own nation is known as a traditionalor national registry. In other words they allow only vessels that are owned by companies or persons that are residents of that country.

Traditionally, closed registries have a two-fold requirement, firstly, incorporation in country of registration and secondly, principal place
of business in country of registration.

In a closed registry, the tax is charged on the earnings as compared to open, wherein the taxes are on the basis of tonnage.

2. THE INTERNATIONAL REGISTRY or OPEN REGISTRY

International Registry has virtually no restrictions, however, this has led to allegations of sub-standard ships. International registry incorporates second registry, hybrid system and bareboat charter registration.

Open registers denote flags of convenience for ships. More than half of the world’s shipping countries follow open registry, such as Panama, Liberia and Bahamas.

A ship registered in a country is required to fly the flag of that country and is entitled to the privileges and protection of the country. Registration provides title to a ship which is important for the ship to enter into trade relations.

 

 

3. SECONDARY REGISTRY

Secondary Registry is also known as Offshore Registry. It permit as an economic incentive, the hiring of foreign crews at wages lower than those payable to domestic crews.

It was viewed as an alternative to open registry,  to counter its effects on shipping. Prior to the advent of secondary registry,  traditional maritime countries were offering various forms of financial incentives to ship owners, thus the main objective of secondary Registry was the phasing out of subsidy and incentive schemes .

 

4. HYBRID REGISTRY

Hybrid registers offer attractive combinations of national and open registry features designed to lure shipowners. Just as open registers developed in response to national registries, so hybrid registers have developed in response to open registries.

They are easier to access and have fewer entry requirements than
most national registries. They tend to maintain a nationality link between beneficial owner or management of the vessel and the flag State. In general, hybrid registries tend to offer financial incentives and advantages similar to open registers.

Many hybrid registers are maintained for use only by national shipowners as an alternative to flagging out and as a way to compete with the open registry system.

However, some hybrids allow foreign shipowners access to the registry once certain technical standards are met. The Norwegian and Danish International Ship Registers, the Isle of Man, and Madeira permit foreign owned or controlled vessels in certain circumstances while the German and the French International Ship Registers do not have nationality requirements.