The recent amendments to the Merchant Shipping Act (MSA), represent a significant advancement in Malta's maritime legislative framework. These changes introduce essential updates aimed at modernising existing regulations and establishing new ones, thereby enhancing Malta's competitiveness in the global maritime sector.
Ship Registration
The introduced amendments modify a number of registration procedures, most notably:
- Age Limit Reduction: The maximum age for a ship to be registered under the Malta Flag has been reduced from 25 years to 20 years. This adjustment reflects the reality that ships are often retired at a younger age. This notwithstanding, the Registrar-General retains the authority to decide if any ship over 20 years old should be registered.
- Simplified Identification: The previous requirement for shipowners to display identification on a board near the construction site has been eliminated. However, the obligation to paint the ship’s official number, name, and port of registry on the keel, side, and stern remains intact.
Ship Finance
The amendments introduce new provisions for financing charters:
- New Financial Instruments: A new finance charter instrument has been established, enhancing the legal framework for registered securities and securing lessor’s rights over vessels. This initiative aims to protect the interests of financiers, shipowners, and charterers within Malta's EU jurisdiction.
- Mortgage Provisions: Via these amendments, mortgage regulations in Malta have been optimised by allowing corrections to mortgage deed errors within seven days of registration, with the consent of involved parties. Additionally, mortgages can now be registered for ships under construction.
Administrative Reform leads to Reducing Bureaucracy
Certain powers previously held by the Minister have been vested in the Registrar-General, promoting a more efficient and less bureaucratic maritime administration system in Malta.
Maritime Processes being Digitalised
With the new amendments, the Act significantly advances the digitalisation of maritime processes:
- Electronic Communication: Notices required under the MSA to be sent to the master or owner of a ship are now considered valid if sent via email.
- Digital Document Retention: The Registrar-General is allowed to keep electronic copies of essential vessel documents, including ownership declarations, bills of sale, and builder's certificates.
Seafarers’ Rights
The Act clarifies that wages for seafarers continue to accrue during a judicial sale of a ship until they leave the vessel or it is sold. The accommodation provisions for seafarers have also been updated to align with the Maritime Labour Convention, 2006, replacing references to outdated International Labour Organisation conventions.
Other Salient Amendments
- Definition of Bareboat Charterer: The Act defines "bareboat charterer" as “a person who leases or sub-leases a ship, by means of a contract for a stipulated period of time, during which period such person shall acquire full control and complete possession of the ship, including the right to appoint her master and crew for the duration of the charter but excluding the right to sell or mortgage the ship”. Obligations previously assigned to the owner or master are now extended to bareboat charterers.
- Name Reservation: Shipowners can now reserve a proposed ship name for up to twelve months before registration.
- Updated Treaty List: The MSA has been revised to reflect an updated list of treaties and conventions that the Government of Malta may ratify or accede to.
Concluding Observations
These amendments showcase Malta's commitment to maintaining maritime legislation that aligns with international standards. The reforms aim to address the needs of the global maritime community while enhancing administrative efficiency and legal clarity for key stakeholders, including financiers, shipowners, charterers, managers, and seafarers.
Dr. Stephan Gauci
Managing Director
