Post on 10-Jan-2023
TL3130
Maritime Transport
Continuous Assignment
Group Assignment No 1
Group 6
101410 P Naleen De Alwis
101418 X Danushka Karunarathna
101426 U Thilan Madusanka
101435 V Kasun Pitigala
101440 G Charith Akalanka
101443 T Duleepa Srinath
101446 F S.H. Uthpalee
101455 G Joy Nitharsanan
101456 K Malinda Edirisinghe
Submission Date: 06/10/2013
TL 3130 Maritime Transport Page ii
Table of Contents Introduction of Liberian Registry .............................................................................................. 1
1. Flag state and coastal state regulatory control .................................................................... 1
Flag state regulatory control .................................................................................................. 1
Coastal state regulatory control ............................................................................................. 2
2. Origin of the Liberian ship registry .................................................................................... 2
3. Liberian Registry ................................................................................................................ 3
Evolution ................................................................................................................................ 4
Different types of ships registered under particular registry and ownership (2012) ............. 4
4. Services provided by the particular ship registry to ship owners ....................................... 5
5. Vetting process adhered by the registry for registering ships ............................................ 6
Ownership Requirement ........................................................................................................ 6
Vessel Tonnage ...................................................................................................................... 7
Vessel Age ............................................................................................................................ 7
Vessel Classification and evidence of seaworthiness ............................................................ 7
6. The role of the maritime administration ............................................................................. 8
7. Recommendations for Ship Owners Regarding Registration of Ships in Liberian Registry
9
References ................................................................................................................................ 10
ANNEX.................................................................................................................................... 11
Role of Maritime Administration......................................................................................... 11
TL 3130 Maritime Transport Page 1
Introduction of Liberian Registry
The Liberian Registry – the second largest in the world, includes over 3900 ships of more
than 131 million gross tons, which represents 11 percent of the world‟s ocean going fleet. As
the world‟s premier open ship registry, the Liberian Maritime Program is renowned for
quality, efficiency, safety and service. Likewise, the Liberian Registry is recognized at the
top of every industry “white-list” including the International Maritime Organization and the
major Port State Control authorities such as the US Coast Guard as well as the Paris and
Tokyo MOU regimes. Furthermore, according to the U.S. Maritime Administration, Liberian
flagged vessels carry more than one-third of the oil imported into the United States.
The Liberian Registry, is administered by the Liberian International Ship & Corporate
Registry (LISCR, LLC), a wholly U.S. owned and operated company that provides the day-
to-day management for the Republic of Liberia's (ROL) ship and corporate registry. LISCR is
recognized globally for its professionalism and commitment to safe and secure shipping as
well as its proficient administration of one of the most convenient, efficient, and tax effective
offshore corporate registries in the world. The Registry‟s personnel have strong commitment
to operating a quality registry with first-class customer service. Significant investments in
new computer and communication technologies have been made to meet the demands of
today‟s shipping industry. The Liberian Registry, headquartered in Vienna, Virginia
maintains the branches around the world.
1. Flag state and coastal state regulatory control
The flag state is the state in which the ship is registered. This state is responsible for
regulating all aspects of the commercial and operational performance of the ship. Coastal
state has limited rights over a ship when the ship sails in its waters.
Flag state regulatory control
The ships registered under Liberian registry, should safeguard the life of the crew and the
marine environment. Liberia Maritime Authority (LiMA) through its agent Liberia Ship
Corporate Registry (LISCR) determines whether the ship‟s registered fleet conforms to the
provision of international conventions. This registry can be considered as the leading opening
registry in terms of safety and quality.
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Liberian registry works with nautical inspectors, the classification societies, and vessel
managers in order to reduce the number of Liberian flagged vessels detaining by coastal
states (port sate detention). This registry has network of auditors worldwide in the fields of
International safety Management (IMS) and International Ship and International codes (ISPS)
codes. The Liberian Registry has provided a lot of advantages through harmonizing the
overlapping requirements of these codes. Liberia‟s optional harmonized audit program has
ensured the compliance among ship owners and it gives further advantages for the industry.
Nautical inspectors also conduct annual safety inspections and it complements the survey
conducted by the classification society. These inspections include operational, manning,
training and safety management issues.
Coastal state regulatory control
UNCLOS 1982 has enabled coastal states to legislate for the good conduct of ships their
territorial sea. Liberian registry has industry wide respects in major white lists such as IMO,
USCG, Paris and Tokyo Memorandum of Understandings (MOUs). Liberia registry looks
into the areas of safety of navigation, protection of navigational aids, preservation of the
environment and protection, reduction and control of pollution and the prevention of
infringement of customs and sanitary laws.
Liberia registry undertakes port state control inspections as identified in Tokyo and Paris
MOUs. The Liberia Maritime Authority considers environmental protection and Safety of
Life at Sea (SOLAS) as a main focus.
2. Origin of the Liberian ship registry
The Liberia Maritime Program was started in 1948 during the post - World War II, when
there was a huge international demand for ships to transport various products and
commodities. Today, it is the second largest ship registry in the world.
Over the years, the Liberian Registry has become the "flag of choice" for some of the world's
largest ship owners. It is also one of the few open registries with an independent association
of ship owners, known as the Liberian Ship owners‟ Council and it is a member of the
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International Chamber of Shipping. The Program is implementing celebrating its 63rd
Anniversary. Due to signing into Law of the Liberia Maritime Authority Act of 2010
transformed Liberia's maritime legacy from the one-dimensional Bureau of Maritime Affairs
(BMA) responsible for the administration of Liberia's Maritime Program into the new,
dynamic and vibrant 21st century Liberia Maritime Authority (LiMA), which is empowered
by law to include the full potential of Liberia's Maritime Sector and ensure that the national
economy is the ultimate beneficiary of its programs and activities.
The transformation of Liberia's Maritime Program has positioned Liberia on the trajectory of
becoming a nation whose Gross Domestic Product (GDP) is disproportionately supported by
the entire maritime sector. Liberia's geographic location makes it a Coastal State, its world-
renowned Shipping Registry, ensuring that its Flag is flown by some of the world's largest
fleets makes it a Flag State, and its use of Sea Ports as the Gateway to the National Economy
makes it a Port State. Therefore, it's only natural that Liberia explores opportunities building
on these strengths. The Authority is the fulfillment of the vision of becoming a true Maritime
Nation conceived since the inception of Liberia's Maritime Program in 1948
The Liberian Registry is currently administered by the agent of LIMA, the Liberian
International Ship and Corporate Registry (LISCR, LLC), which is a U.S. owned company
that provides the day-to-day operations for the Republic of Liberia's (RL) ship and corporate
registry. Liberia Maritime Law, including provisions for the registration of ships , crew
licenses , certification of ships safety , and other essential factors are implemented by
maritime Liberian regulations and policies widened by the office Liberia the Commissioner
of the Liberia Maritime Authority.
3. Liberian Registry
Use of the open flag is increasing rapidly. The growth of most of the major flags of
registration is higher than the growth of total fleet. It is estimated that 71.5% of world
tonnage is now registered under foreign flag registry and ten major open registers continue to
expand their market share amounting 56.6% in January 2012. The share of the fleet registered
in the developing countries of the Asia also demonstrated a positive growth. Today almost
open registers cater to residential and foreign. But among them Liberia is biggest registry
which is cater exclusively for foreign tonnage.
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Evolution
The Liberian Registry was established in 1948.It is a respected and professional provider of
corporate and ship registration services with 11% of the world‟s ocean-going fleet. The
Registry has experienced exponential growth in fleet size and registered tonnage throughout
its long history. In recent years, the Liberian Registry has grown by approximately 65 million
gross tons, twice the growth rate claimed by its nearest competitor over the same period. The
Registry celebrated a major milestone in ship registry history when it passed the historic
figure of 100 million gross tons in 2010.
Different types of ships registered under particular registry and ownership (2012)
Country DWT (In thousands)
Germany 59,969
Greece 37,186
Japan 7,756
USA 4,968
China 839
Korea republic 250
All other owners 78,946
Total 189,911
Germany is the main customer of the Liberian registry and thereafter Greece do more ship
registries under the Liberian registry. This registry caters for 3030 ships and it is 189,911,000
dead weight tonnages. Liberian registry fleet has its highest share in bulk carriers.it is
transfer 104,451,000 tonnage using 1000 ships.
Type of Ship Dead weight tonnage in thousands(dwt) Number of ships
Tanker 36,083 243
Bulk Carrier 104,451 1,000
General Cargo Ship 5,698 333
Container ships 28,486 273
Other 15,193 1,181
Total 189,911 3,030
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4. Services provided by the particular ship registry to ship owners
Liberian ship registry provides ship owners 24- hours‟ service making it a quality partner for
them to compete in this growing global shipping industry.
In addition to its regional offices in the major maritime centres of the world, the Liberian
Registry is also supported by a worldwide network of over 220 Nautical Inspectors and 120
qualified Security and Safety Auditors. This global infrastructure ensures that there is always
someone available to provide assistance and service anywhere in the world.
What mentioned below are some of the major services the ship owners can get by registering
with the Liberian ship registry.
Being a shipping industry leader Liberian registry provides ship owners‟ the
opportunity to experience the latest technical innovations and the trends in the
industry.
Ship owners are given the freedom to search and ask shipbuilders solely on
commercial considerations, such as competence, experience, and price as Liberian
does not require vessels to be constructed by a particular nation.
The mortgage-recording regime of the Liberian Register is internationally recognized
and acceptable to banks from many jurisdictions, allowing the best opportunity to
obtain the most favourable financing.
The pre-registration formalities are user friendly, designed to meet international
standards in relation to safety and documentation but not to delay operations.
Bareboat registration in and out is permitted and no restraints are placed on a ship
wishing to transfer out of the register.
Unlike many national registers, the Liberian Registry recognizes the need and actively
protects the opportunities for asset protection. It allows the use of and maintains the
integrity of single purpose corporate vehicles. Likewise, the Corporate Register must
continue to offer flexible corporate vehicles to ensure that specific ownership options
are available to meet the needs of the multitude of ship owning structures.
Liberia is one of the few open registries with an independent ship owners'
council. The LSC provides member ship owners with a venue to monitor and address
problems facing the industry and to share and exchange information and ideas. The
LSC is also a member of the International Chamber of Shipping, and the International
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Shipping Federation (the only maritime employer association who can represent ship
owners at the International Labour Organization). As such, Liberian Ship owners are
able to benefit from the valuable services of this leading industry institution.
The Liberian Registry offers professional service at a competitive price. Savings
realized by use of technology are passed back to clients of the Registry.
Liberian ship registry provides ship owners the facilities regarding the safety of the
ship. These services include a worldwide network of nautical inspectors who perform
annual safety inspections, delegation of statutory surveys to the leading classification
societies, well qualified professional seafarers who meet the highest standards of
training, experience and certification etc.
The Liberian Flag Administration has held discussions with the UN, IMO, members
of the International Association of Classification Societies, security consultants,
clients and the U.S. Coast Guard to determine the best possible approach to meet the
challenges of the ISPS Code and safeguarding Liberian flagged vessels and seafarers
against the outcome of crimes, piracy and terrorism.
5. Vetting process adhered by the registry for registering ships
Ship vetting process is conducting an assessment to identify whether the ships are sea worthy
and without any legal disputes. Conducting thorough vetting process helps ship registries to
maintain a respectable conduct in the industry. Librarian registry requires the ship owners to
submit vetting forms giving descriptions as how to how the following requirements are met.
Ownership Requirement
The primary condition is that the owner of a Liberian vessel must be a Liberian citizen or
national. However, to enable more and more ships enrolled to Liberian registry, these
definitions of “Liberian national” cover a broader area. Liberian corporation (US law), a
limited partnership, a limited liability company (LLC) or a company (UK law) is considered
to be a national. Foreign ships should be included in a Foreign Maritime Entity(FME) formed
in accordance with the Liberian law. Only ships who have passed the below vetting needs are
permitted to form an FME. Application for Waiver of Ownership: if the owner of a vessel is
registered as an FME Application for Registration (Form RLM-101A),Evidence of Authority
(i.e. Original Power of Attorney or Corporate Resolutions),Proof of Ownership (i.e. Bill of
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Sale; Builder‟s Certificate) and Proof of Liability Insurance are requested to submit for the
vetting process.
Vessel Tonnage
A minimum vessel tonnage of 500 tons must be met to eligible for the Liberian registry.
Measurement of vessels shall be in accordance with the International Convention on
Measurement of Ships currently in force, as amended. Documents Application for Waiver of
Tonnage, BCLC Blue Card: required for all vessels over 1000 gross tons ,and CLC Blue
Card: required for vessels carrying more than 2000 tons of oil in bulk as cargo may be needed
according to the type of the ship.
Vessel Age
Vessels should be below 20 years of age at the time of registration, computed from
completion of first construction, on January 1 of the year in which initial registration or re-
registration is sought. Owners can appeal behalf on the vessels that fail on this requirement
and demand for a waiver sating the sea worthiness and respectable history of the ship. Such a
waiver, approved by the Marine Operations and Standards Department based on
consideration of the vessel‟s material condition, history of port state control, and industry
inspection records and other criteria is determined on case by case basis. Survey Report: if
vessel is fifteen (15) years of age or older and Application for Waiver of Age: if the vessel
registered is over twenty (20) years of age but it has been accepted for registration under the
Liberian Flag are required to be submitted.
Vessel Classification and evidence of seaworthiness
Vetting process requires documents regarding a vessel‟s approved seaworthiness standards
under its current classification based on International Convention for the Safety of Life at Sea
(SOLAS) and the International Conventions for the Prevention of Pollution from Ships to
which the Republic of Liberia is a part.
All vessels are required to be classed by a Classification Society that is a member of the
International Association of Classification Societies (IACS). The following Classification
Societies are currently approved for the issuance of International Convention Statutory
Certificates on behalf of the Administration:American Bureau of Shipping (ABS),Bureau
Veritas (BV),China Classification Society (CS),Det Norske Veritas (DNV),Germanischer
Lloyd (GL),Korean Register of Shipping (KRS),Lloyd‟s Register of Shipping (LR),Maritime
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Register of Shipping (MRS),Nippon Kaijai Kyokai (NKK) and Registro Italiano Navale
(RINA).Class Documents: Confirmation of Class and Statement or Affidavit from Class
Societyare requested to be submitted.
Ship owners can request the Liberian Registry to issue a certification if the ship does not fall
into any of these categories. In such a scenario, the Liberian Registry has a worldwide
network of Safety and Security auditors specially trained and able to offer Liberia‟s unique
Harmonized ISM and ISPS Code Certifications.Application for Minimum Safe Manning
Certification andInternational Safety Management (ISM) Code Declaration Formsare
requested to be filled and submitted for vetting.
6. The role of the maritime administration
Maritime Administration is the national agency responsible for and dedicated to ensuring the
safety of ships, the protection of life and property at sea and the marine environment, and
compliance with applicable national laws and regulations. The Liberian Registry, is
administered by the Liberian International Ship & Corporate Registry, a wholly U.S. owned
and operated company that provides the day-to-day management for the Republic of Liberia's
ship and corporate registry. When considering a structure for the Maritime Administration,
account has to be taken of the duties imposed on the Administration by the Shipping Act and
the support necessary to carry out those duties. Accordingly, the roles and functions have
been categorized as follows:
Safety and Certification
Safety and certification is generally responsible for the inspection and survey
of ships, the hull, machinery and equipment of ships, the handling and
stowage of ship's cargoes, cargo handling gear, the certification of ships,
marine pollution prevention, wreck and salvage and the training and
certification of seafarers.
Registration and Research
Registration and Research is basically responsible for the registration of ships
and seafarers and the research necessary to provide the Government with
timely and reliable information for analysis and evaluation for the formulation
of policies in respect of the development of shipping.
Legal Affairs
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Legal Affairs is generally responsible for national maritime legislation,
international maritime conventions, the harmonization of that legislation with
the conventions and regulations in the constantly changing international scene
and the legal affairs of the Administration.
Support services
Support services are responsible for the day to day administration needs of the
Administration, budgets, financial and personnel matters.
(These roles and responsibilities are further explained under the „Role of Maritime Administration‟ in annexure)
(Reference: POSSIBLE FRAMEWORK FOR A MODEL MARITIME ADMINISTRATION, Michael J. Hubbard
(Canada), IMO Consultant/ Heike Hoppe, Technical Officer, IMO)
7. Recommendations for Ship Owners Regarding Registration of Ships
in Liberian Registry
Liberian registry is recognized as one of the top rated registries in the world by the
Paris MOU (Memorandum of Understanding). According to the 2010 annual report
issued by the Paris MOU, Liberian Registry is a best performing shipping registry
which is also in the “White List”, a prestigious list where only best performing and
best quality assured registries are eligible. So ships that register under the Liberian
Registry will be recognized globally as a good quality vessel and can operate in any
port.
Liberia has a global network of nautical inspectors who can perform audits to ensure
that vessels are in compliance with International Safety Management and
International Ship and Port Security. Any short falls in the vessel safety will be
communicated to the ship owners and even mandated additional inspections and
maintenance procedures. This ensures that the ship owners have to maintain their
vessels according to the international standards and will be recognized around the
world for their safety.
Liberia places security as a high priority as it is in the driver seat of many security
measures that is adopted around the world. They have pioneered in the shipboard
security manual, International Ship & Port Security Code, safeguards to eliminate
fraudulent applications for crew certification and many other aspects. So by choosing
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Liberia as the flag country a ship owner will have a certification that he or the
company is abiding by the best security measures in the world.
Liberia was the first flag country to adhere to MARPOL annex VI which is an
international convention to prevent emission of air polluting particles from ships.
Having a large fleet of ships under its name, this move ensured that the tonnage
ratification was brought up sharply. As customers prefer to deal with suppliers who
are more environmentally concerned in their business practice, having Liberia as the
flag state will be an advantage for the ship owners.
Liberia has enforced International Labour Organization conventions that protect the
rights of sea farers. Sea farers can get claims through the courts of any appropriate
jurisdiction and not be limited to Liberia only.
Although there are no disadvantages that can be directly linked to Liberian registry, open
registries as a whole have some issues that come with them. Open registries are mostly used
to conceal the true ownership of a vessel, also ships registered under open registries are long
linked to high sea crimes and terrorist organizations are known use open registry ships to
move personnel, equipment and weapons around the world. Although poor working
conditions and environmental effects also come under this category, as explained above
Liberian registry has taken measures to rectify these issues.
References
Review of maritime transport (UNCTAD), 2012
https://www.liscr.com/liscr/AboutUs/AboutLiberianRegistry/PerformanceRecord/tabid/213/
Default.aspx
POSSIBLE FRAMEWORK FOR A MODEL MARITIME ADMINISTRATION, Michael J.
Hubbard (Canada), IMO Consultant/ Heike Hoppe, Technical Officer, IMO
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ANNEX
Role of Maritime Administration
Roles and responsibilities of units within the Maritime Administration shall be clearly
described and delineated. The organization of the Maritime Administration shall be structured
to reflect its duties, roles and responsibilities and to ensure that its mandate is achieved in the
most effective and efficient manner.
It is the policy of the Maritime Administration to co-operate with all other agencies
(locally and internationally), governmental or private (locally and internationally), in
promoting the safety and security of life and property at sea and in protecting the
marine environment. The Maritime Administration will develop partnerships and co-
operative links with other agencies that have similar and/or complementary interests.
Prior to the implementation of any new or amended policy, programme and legislative
or regulatory initiative, it is the policy of the Maritime Administration to consult fully
with all interested parties including public interest, clients and staff.
It is the policy of the Maritime Administration to conduct a program of inspections to
ensure that flag ships and foreign registered ships entering its ports comply with the
requirements of all applicable conventions, statutes and regulations with respect to
ship safety and protection of the marine environment. Complete records of all
inspections will be maintained by the Administration. The Administration is
committed to ensuring that inspections and surveys are conducted in an efficient and
expeditious manner to ensure the facilitation of shipping. In order to give effect to the
policy with respect to the inspection of foreign registered ships, the Maritime
Administration will participate in co-operative agreements, including Memoranda of
Understanding, with other like-minded states.
It is a policy of the Maritime Administration to conduct an inspection program of
dangerous goods with particular emphasis on their storage and handling on board
ships and their storage in ports. This is to ensure compliance with the safety
requirements in respect of persons and property at sea and the protection of the
environment.
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It is the policy of the Maritime Administration that small vessels engaged in
commercial activities, including fishing vessels, shall be inspected for minimum
standards with respect to structural integrity, equipment and operational safety
appropriate for the voyages and activities engaged in.
The Maritime Administration will recommend to the responsible Government
authorities the ordering of investigations into competence, conduct and/or fitness in
cases of loss of ship, loss of life, serious damage to a ship, heavy pollution,
indications of impairment and criminal offences.
The Maritime Administration will investigate marine casualties and incidents with a
view to determining what action, if any, is needed to ensure the protection of life and
property at sea and the marine environment.
The Maritime Administration will maintain a Register of Ships in accordance with
national legislation and a Registry of Seamen.
Recognizing the importance of the ratification and implementation by all flag States
of relevant instruments adopted by international bodies, it shall be the policy of the
Maritime Administration to comply with the regulations of those international
conventions the flag State is party to.
(Reference: POSSIBLE FRAMEWORK FOR A MODEL MARITIME ADMINISTRATION, Michael J. Hubbard
(Canada), IMO Consultant/ Heike Hoppe, Technical Officer, IMO)