"Importance of ship registration"

By Robert Sanga 

- Ship registration means registering a ship into a particular State. A ship belongs to particular country by registration. A registered ship is protected by the law of the State. Details of ship build, ownership and mortgage enter into the flag states where the ship is register. Every State maintains registers in which particulars of merchant vessels possessing the nationality of that State and flying its flag are entered. A country registering a ship issues “Certificate of Registration” which can be effectively use as a “ship’s passport” permitting entry/departure from the worlds ports (Cathrine Bjune, 2016).

There are several importance’s of ship registrations. A ship possessing no nationality – a stateless ship- enjoys no protection in international law. She is unable to engage in lawful trade since ports will deny entry to her. The United Kingdom Merchant Shipping Act 1995 provides that clearance or transire shall not be granted for any ship until the master has declared to an officer of customs the name of the nation to which he claims she belong. If a ship attempts to proceed to sea without such clearance or transire, she may be detained until the declaration is made. Furthermore, a stateless ship is liable to seizure (Richard Coles and Edward Watt, 2009).

Right to fly national flag and the attachment of legal jurisdiction over ship and crew is one of the important factors to be considered when choosing a flag for a vessel. By having those two main important rights, a ship is automatically entitles to other rights. Among other factors, right to diplomatic & naval protection, right to fish in territorial waters and engage in coastal trade (Cabotage) are very crucial for the ship. This can make a different in shipping business. For example, a ship register in Indonesia have the right to Offshore operations in Indonesia meanwhile, a ship register in Africa does not have such right in Indonesia.

It’s important for a ship owner to check up about the beneficial outcome of registering a ship in one particular country. That’s because the other parties than owners have an impact on the choice of flag. Both the commercial and technical charterers can have a certain benefit by a ship registration at the particular country. Ship registration has great effects for the administration, employees for commercial or technical part of the ship and for the passengers as well.

If a ship is registered at one of the economic sanction countries by the international communities, then it will not be possible to be trade with certain part of the world. For example, in the past few decades, Burma/Myanmar was economically sanctioned by the US & European countries. That was because the military regime had created over six decades of civil wars and human rights abuses. As a result, it was not possible for Western countries to trade with a ship registered in Burma. This had a great impact not only for the ship owner but also for all those who like to trade with that country.

The registration fees may vary from country to country as well. The requirements for registering a ship are not the same either. Norwegian owner of a ship may choose to register the ship in Norway or any part of the world. There is no limit for a place of registering a ship as long as it’s register at one particular choice of country. Even landlocked countries like Pakistan and Nepal have the right to have ship register in their countries.   

There are several effects on ship registration. That’s because ship registration is done under a public law function as opposed to its private law function (Richard Coles and Edward Watt, 2009). The following important points are among the public law functions:

(a) The allocation of a vessel to a specific State and its subjection to a single jurisdiction for the purposes, for example, of safety regulation, crewing and discipline on board;

(b) The conferment of the right to fly the national flag;

(c) The right to diplomatic protection and consular assistance by the flag State;

(d) The right to naval protection by the flag State;

(e) The right to engage in certain activities within the territorial waters of the flag State – for example, coastal fishing or trading between the ports of the flag State (cabotage);

(f) In case of war, for determining the application of the rules of war and neutrality to a vessel.

Registering a ship in one particular country means that a ship belongs to the land of registration. This implies that the ship has to follow the rules and regulations of the country of registration. Any legal issue that may arise will have to deal with the law of that country. A ship sailing in the high sea will be bound to the law and order of the country where the ship was registered.

It’s possible to have a double register a ship. This has to be done at those countries when open registration is accepted.  Examples of “Open registers” countries are Panama, Liberia, Marshall Islands, UK and Red Ensign group. There are several reasons why ship owners may choose to register dual registration. For example: A ship registered under Singapore flag can be registered simultaneously under Indonesia flag. This may be done because a) accent to cabotage or fishing rights privileges, b) avoidance of trade sanctions and keeps the original mortgagee bank happy. 

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Reference:  

Bjune, Cathrine (Autumn 2016). Ship Operations: Master in Maritime Management, HBV Publishing, Horten.

Richard Coles and Edward Watt. (2009). “Factors influencing the choice of flag” Ship Registration: Law and Practice, 2^nd Edition