In response to the needs and realities of the yachting industry and heeding the advice of numerous stakeholders in the business, the Malta Merchant Shipping Directorate has introduced the Passenger Yacht Code (the ‘PYC’). This Code, which entered into force on 25 May 2021, lays out a pragmatic approach to an increased demand for larger yachts wishing to carry more than 12 passengers whilst simultaneously making sure that the highest safety standards, which are more suited to these kinds of vessels, are applied and maintained.

The scope of applicability of the PYC is passenger yachts; that carry more than 12 passengers and up to 36 passengers, which carry not more than 200 persons in total, which do not carry cargo, and which are engaged on international voyages. It exclusively caters for the yachting sector and does not apply to vessels engaged in the ferrying of passengers. Also, the Code is not applicable to pleasure crafts or yachts not employed for commercial use; however private/pleasure yachts carrying 13 guests or more, are encouraged to voluntarily comply as far as practicable with the standards laid out therein.

The PYC was developed taking cognisance of the challenges involved with applying certain international convention standards originally intended for merchant vessels to present-day passenger yachts or superyachts. Prior to its introduction, yachts carrying more than 12 passengers, and which fell outside of the scope of the Malta Commercial Yacht Code (which caters for yachts engaged in commercial operations that do not carry more than 12 passengers) had to satisfy similar requirements to those applicable to passenger ships. These requirements were often regarded as being too disproportionate and onerous when considering a passenger yacht’s design and general operations. The PYC also aims to better safeguard the protection of life and property at sea and strives to continue to promote the prevention of marine pollution from yachts.

The provisions of the PYC deal with construction and stability, machinery, equipment, safety, fire protection, detection and extinction, manning and crew certification and operations of a passenger yacht.  The PYC outlines several dedicated equivalences to international convention requirements, including inter alia those emanating from provisions in the International Load Line Convention as amended in relation to Plimsol markings, Sill/ Coaming heights and Glazing, and numerous equivalences to requirements in the International Convention for the Safety of Life at Sea as amended (‘SOLAS’) – which requirements in view of the passenger yachts’ technical specifics, design, size, and operational pattern, may be considered impracticable.

In parallel, and without compromising overall safety or weakening standards, the PYC provides for enhanced requirements to several SOLAS provisions and additional equipment or requirements that are deemed appropriate and more suitable for these kinds of vessels. For instance, the PYC provides for enhanced safety and survivability requirements in lieu of the carriage of lifeboats, subject to conditions laid out in the code.

As far as the Merchant Shipping (Maritime Labour Convention) Rules 2013 (‘MLC’) are concerned, the PYC dedicates a section to certain acceptable equivalences relating to crew accommodation, stores and recreational facilities that passenger yachts of less than 1,250 gross tonnes may opt to comply with in lieu of the provisions laid out in the MLC, namely in Part IV – Accommodation and Stores section. It also lays down additional requirements in a separate section for the protection of personnel.

The PYC includes a section on marine pollution prevention and reiterates requirements that all PYC compliant vessels are to meet under the International Convention for the Prevention of Pollution from Ships, as amended (MARPOL), the International Antifouling System Convention and the Ballast Water Management Convention. The passenger yacht is to be surveyed and certified in line with the relevant international conventions in this regard and is to carry on board the relative MARPOL manuals, plans and records as applicable.

The PYC further outlines the applicable requirements for surveys, audits, and certifications. A passenger yacht shall be classed by a Recognised Organisation (RO) and surveyed, certified, audited and issued with Class and Statutory Certificates applicable to passenger vessels. Additionally, the RO shall issue a certificate confirming compliance with the PYC.

Another notable addition in the PYC is the set of guidelines for the static chartering of passenger yachts whereby a passenger yacht which is berthed or anchored at sea is allowed to carry more than 36 passengers. An application is to be filed with the Merchant Shipping Directorate – Yachting Section, and if successful, the passenger yacht is issued with a Statement from Transport Malta allowing static charters to be held on board. Local port authorities are to be kept informed when such static charter is planned, and the conditions laid out in the guidelines are to be upheld. As a growing market trend, this is a welcome addition for passenger yachts flying the Malta flag.

With the PYC, the Malta Merchant Shipping Directorate has taken a significant step in attracting more yachting tonnage to its fleet and to maintain its status as a quality flag of confidence respectful of the demands of this fast-evolving industry. The Malta Merchant shipping Directorate is committed to the growth of this sector as we have also seen more recently with the introduction of the Commercial Yacht – Pleasure Yacht Changeover Guidelines on the 2 September 2021, which aim to assist all stakeholders by clarifying the salient features and procedural aspects of the changeover in yacht status from pleasure to commercial and vice-versa under the Malta flag – an option often availed of by owners of Malta flagged yachts.

How can we help?

Should you require any further information or assistance on the matter, please do not hesitate to reach out to us personally on stephanie.farrugia@fenechlaw.com, matthew.cassar@fenechlaw.com, and lara.saguna@fenechlaw.com 

©Fenech & Fenech Advocates 2021

Disclaimer │ The information provided on this Update does not, and is not intended to, constitute legal advice. All information, content, and materials available are for general informational purposes only.  This Update may not constitute the most up-to-date legal or other information and you are advised to seek updated advice.