2.2.3 The Secondary Registry
To compete with the open registry flag states, traditional maritime states initially
invited shipowners to register their vessels by tactically offering subsidies and other
financial incentives. Soon enough, a number of maritime states began to operate a
system to attempt to contain the open registries. This is the system of the secondary
or offshore registry. Traditional western maritime states operate this system and
claim that their registries provide an attractive economic option as well as maritime
safety and environmental protection. In relation to the latter point, it is asserted that
their systems adhere to strict compliance with international regulations. As a financial attraction, secondary registries do not restrict the hiring of foreign crews at
wages lower than those payable to national crews.
36
2.2.4 The Hybrid Registry
The hybrid registry, as the name suggests, is a combination of the open and closed
registry systems. The impetus for it appears to have come from the United Nations
Convention on Conditions for Registration of Ships, 1986 (UNCCROS). The
Convention permits partial manning of ships by non-nationals so long as their levels
of competence and conditions of employment conform to the relevant international
rules and standards. It provides that corporate owners be established within and have
its principle place of business in the flag state, or provide for a representative person
there who is capable of meeting all legal and financial obligations of the shipowner.
UNCCROS also provides for bareboat charter registration and the fostering of joint
ventures for the development of national shipping industries. Incidentally,
UNCCROS is not in force and is highly unlikely to ever materialize as such.
37
Several hybrid registries boast maritime safety and environmental protection standards that are level with or even higher than those of many closed registry flags.
2.2.5 Bareboat Charter Registration
Bareboat charter or demise charter registration (the two terms being used interchangeably) is a system that allows a temporary change of flag which involves the
owner, the flag state of the owner, the charterer and the intended flag state of the
charterer. It operates smoothly when there is compatibility between the laws of the
flag-out and flag-in states. From it emerges the notion of dual or parallel registration
and is economically advantageous in many ways for each party.
38 It is submitted that
“parallel” is the better description because the latter has the connotation of two
36 Mukherjee and Brownrigg (2013), pp. 208–210.
37 Mukherjee and Brownrigg (2013), pp. 212–213.
38 Wiswall (1988).
588
R. Mukherjee
To compete with the open registry flag states, traditional maritime states initially
invited shipowners to register their vessels by tactically offering subsidies and other
financial incentives. Soon enough, a number of maritime states began to operate a
system to attempt to contain the open registries. This is the system of the secondary
or offshore registry. Traditional western maritime states operate this system and
claim that their registries provide an attractive economic option as well as maritime
safety and environmental protection. In relation to the latter point, it is asserted that
their systems adhere to strict compliance with international regulations. As a financial attraction, secondary registries do not restrict the hiring of foreign crews at
wages lower than those payable to national crews.
36
2.2.4 The Hybrid Registry
The hybrid registry, as the name suggests, is a combination of the open and closed
registry systems. The impetus for it appears to have come from the United Nations
Convention on Conditions for Registration of Ships, 1986 (UNCCROS). The
Convention permits partial manning of ships by non-nationals so long as their levels
of competence and conditions of employment conform to the relevant international
rules and standards. It provides that corporate owners be established within and have
its principle place of business in the flag state, or provide for a representative person
there who is capable of meeting all legal and financial obligations of the shipowner.
UNCCROS also provides for bareboat charter registration and the fostering of joint
ventures for the development of national shipping industries. Incidentally,
UNCCROS is not in force and is highly unlikely to ever materialize as such.
37
Several hybrid registries boast maritime safety and environmental protection standards that are level with or even higher than those of many closed registry flags.
2.2.5 Bareboat Charter Registration
Bareboat charter or demise charter registration (the two terms being used interchangeably) is a system that allows a temporary change of flag which involves the
owner, the flag state of the owner, the charterer and the intended flag state of the
charterer. It operates smoothly when there is compatibility between the laws of the
flag-out and flag-in states. From it emerges the notion of dual or parallel registration
and is economically advantageous in many ways for each party.
38 It is submitted that
“parallel” is the better description because the latter has the connotation of two
36 Mukherjee and Brownrigg (2013), pp. 208–210.
37 Mukherjee and Brownrigg (2013), pp. 212–213.
38 Wiswall (1988).
588
R. Mukherjee