CLOSE
CLOSE

SEARCH ANYTHING

CLOSE

SEARCHING

Malta flag: Improvements to the Maltese Merchant Shipping Act

9.4.25

Act No. 1 of 2025 was published on 4th February 2025 containing proposed amendments to the Merchant Shipping Act (the “MSA”, Chapter 234 Laws of Malta). Two months from publication in the Government Gazette, the Act has now come into force. 

The amendments cover various aspects of the MSA which strive to keep the Maltese Registry and its flag attractive to ship owners, operators and financiers alike, ensuring its competitiveness as a key player on the global stage.

Below is a short summary of some of the amendments made:


Enhancing digitalisation and reducing overall bureaucracy

Several amendments have targeted provisions in the MSA that historically referred to traditional registered mail or documents retained in original/paper form, and which have now been substituted by electronic mail and electronic copies of documents. These legislative updates are fundamental changes in todays’ digital landscape and align with the broader digitalisation initiative that is being carried out by the Maltese Ship Registry, also paving the way for electronic certificates which shall shortly be launched. 

Several provisions which previously referenced the powers of the  ‘Minister’ in the MSA have been replaced with ‘Registrar-General’, serving to enhance the overall administrative efficiency of the workings within the Registry and remove lengthy bureaucratic processes.


Introducing the Finance charter instrument and updating relative ship finance provisions

An additional tool has been introduced for securing a debt or other obligation by means of registering a finance charter instrument which is executed by the finance charterer in favour of a lessor in relation to a Malta flagged vessel. For more detail on this introduction, read more here.

Furthermore, practical solutions have been added to the MSA to cater for the correction of errors to a registered mortgage when this is done (i) with the consent of other party or parties and (ii) within 7 days of mortgage registration.


Defining the ‘bareboat charterer’

For the sake of clarity and consistency, a definition of ‘bareboat charterer’ has been outlined in the MSA, defined as ‘a person who leases or sub-leases a ship, by means of a contract for a stipulated period of time, during which period such person shall acquire full control and complete possession of the ship, including the right to appoint her master and crew for the duration of the charter but excluding the right to sell or mortgage the ship’. Following such addition, several amendments have been made throughout the MSA, specifically to Part IV of the MSA related to Masters and Seamen and Part V of the MSA related to Safety of Life at Sea, to incorporate the obligations of bareboat charterers alongside the responsibilities of shipowners or masters, as the case may be.


Increasing seafarer protection

The protection of seafarers and their welfare is of paramount importance to the Malta Registry. Several outdated provisions or references have been removed or updated as necessary, such as the provision in the MSA catering for accommodation of seamen – reference is now correctly made to the Maritime Labour Convention, 2006 of the International Labour Organisation including any revisions thereof, which supersedes the outdated legislation that was previously referenced in the MSA.

Updates have been made to the provision on the time of payment of seafarer wages to clarify that seamen are paid for the period of time they remain on board, and when there is a judicial sale, wages will continue to accrue in favour of seamen continuing their duties on board and will continue until they leave the ship or the ship is sold. Another update outlined in the MSA is that in the event of death of a seafarer in the service of a Maltese flagged ship, the owner or bareboat charterer shall be obliged to pay reasonable expenses incurred not only for the burial of the deceased seafarer but also costs for repatriation of the deceased.


Changing age eligibility and other registration updates

The age limit for registration of a vessel under the Malta flag has been brought down from 25 to 20 years, which aligns with the Registry’s vision of attracting younger, more efficient tonnage to the flag with reduced concerns related to safety and environmental protection.

To ensure clarity regarding the payment of registration fees, changes have been made to the wording in the relative provision updating wording with respect to ‘first’ registration. Furthermore, there have been additions to the provision on ship markings which now also mentions the IMO number, to be marked in accordance with the Safety Convention and the ship’s draught to be marked in accordance with the Load Line Convention.


Conclusion

The updates are welcome introductions to the local merchant shipping legislative framework that shall keep the Maltese Registry aligned with the evolving maritime industry.


OUTLINE