Both the Merchant Shipping Act and the Maritime Labour Convention has enacted significant amendments that aim to modernise maritime regulations and enhance protections for seafarers. Below is a summary of the key amendments:
1. Bareboat Charterer Definition Expanded
A bareboat charterer is now explicitly defined as a lessee with
full control over a vessel, including the appointment of
crew.
However, they are prohibited from selling or mortgaging the
ship.
2. Modernised Communication with Shipowners
Notices can now be sent via email instead of registered mail, streamlining communication and reducing administrative burdens.
3. New Compliance Requirements
Ships must now display their IMO number as per international
conventions.
Vessels under construction must have a keel identification number
for better tracking and regulatory compliance.
4. Changes to Ship Registration Age Limits
The maximum age for first-time ship registration has been
reduced from 25 years to 20 years.
Ships already under the Maltese flag before reaching 20 years
remain unaffected.
5. Upfront Payment of Fees
Both initial registration fees and annual fees must now be paid upfront before a certificate of registry is issued.
6. Strengthened Legal Framework for Mortgages & Finance Charters
Finance charter instruments are now officially recognised as
valid and enforceable security interests.
Foreign-registered ship mortgages can now be recognised and
registered in Malta without requiring deregistration from the
original registry.
Mortgages on ships under construction are now permitted, offering
greater financial security for lenders and investors.
If a ship is sold by court order, all previous mortgages and
finance instruments are automatically discharged, simplifying
transactions for buyers.
7. Expanded Mortgage Rights & Court Powers
Mortgages can now secure multiple obligations, including future
debts, as long as a maximum amount is specified in the
agreement.
Courts now have greater power to intervene in mortgage disputes
upon request by a mortgagee.
8. Administrative Functions Transferred to Registrar-General
Several ministerial functions have been transferred to the Registrar-General, expediting processes related to ship registration, mortgages, and compliance.
What This Means for the Industry
These amendments modernise Malta's maritime regulatory framework, ensuring alignment with international standards, improving efficiency, and enhancing financial security in ship ownership, registration, and financing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
