Latest statistics for 2014 indicate that the Malta maritime flag has reached yet another milestone: the Malta Ships Register has become the sixth largest maritime flag in the world. It has moved up from seventh place in 2013 and has retained its position as the largest in Europe. The Maltese register has not only registered an increase in gross tonnage but has also continued to attract younger vessels to its fleet whilst retaining high standards, said a report by Fenech & Fenech Advocates as seen on Greek media.
This success story is supported by a legislative structure which, through the years, has adapted to the needs of the maritime industry and at the same time has provided the certainty and security which is required by owners, operators, managers and financiers alike. The Merchant Shipping Act (Chapter 234 of the Laws of Malta), as the primary instrument regulating the registration of ships under the Malta flag, widely defines the term "ship" as all types of ships, including those under construction, as well as other marine structures such as oil-rigs and pontoons, all of which may be registered under the Malta flag.
This definition also means that pleasure boats, commercial yachts, tankers, container and other commercial ships, pontoons, barges, floating production storage and offloading vessels, installations and structures and offshore oil rigs/drilling units are all eligible for registration under the Malta flag. The Act requires all ships exceeding six metres in length which are not employed solely in navigation on the coasts of Malta to be registered in the Ships Register of Transport Malta.
In addition to full registration, the Act allows for bareboat charter registration of ships, in other words, the registration of a ship in two jurisdictions which are legally considered to be compatible. Maltese flag compatibility has currently been established with various ship registries including with that of Antigua and Barbuda, the Bahamas, Cyprus, the Isle of Man, Italy, Liberia, the Marshall Islands, Panama, Turkey, Spain and several others. This provides owners and charterers with flexibility for their contractual arrangements and operation of ships.
As far as the age of ships is concerned, restrictions are also applicable and ships which are 15 years and over but less than 20 years must be inspected within the first month from the date of the provisional registration under the Malta flag while ships of 20 years and over are subjected to a flag state inspection prior to being accepted for registration. Ships of 25 years and over are, generally speaking, not accepted for registration and this prohibition has assisted in significantly reducing the average age of ships registered under the Malta flag.
On the strength of a relatively recent amendment to Maltese law, creditors who hold an executive title (such as mortgagees) and who seek to enforce their rights, not only have the option to sell a ship by private sale or judicial auction, but may also avail themselves of so-called "court approved private sales" wherein the court may approve a private sale of a ship in favour of an identified buyer and in consideration of a determined price. Such court approved private sales have the same effect as judicial sales with respect to the granting of title to the purchaser free from all privileges and encumbrances.
It is clear that Malta's ability to keep legislatively abreast with the ever-evolving needs of the maritime industry has been a major contributing factor in attracting among the most demanding and reputable ship owners and financiers to Malta. This, together with the efficiency and accessibility of the Maltese maritime administration, the comprehensive support structure provided by reputable and experienced service providers and the wide range of maritime services available, have rendered the Malta maritime flag the leading flag of choice it is today, the report said.