Continuous Assignment Table of Contents Introduction of Liberian Registry

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.


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


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.


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


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


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


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


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


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


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

https://www.liscr.com/liscr/AboutUs/AboutLiberianRegistry/PerformanceRecord/tabid/213/Default.aspx

https://www.liscr.com/liscr/AboutUs/AboutLiberianRegistry/PerformanceRecord/tabid/213/Default.aspx


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.


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)

Continuous Assignment Table of Contents Introduction of Liberian Registry

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