Liberia adopts law amendments in line with new ship finance environment

The Republic of Liberia has responded to the needs of shipowners and the ship financing and legal community by amending Liberian maritime law to allow lease financing structures to be recorded as mortgages. As a result, Liberia is the only flag state with preferred status in China able to record financing charters.

The advantages offered to the shipping industry by Liberia as a result of the changes made to the country’s maritime law are by no means limited to leasing houses in China, but rather are available to all stakeholders, worldwide. Lease structures for ship financing are, however, increasing in popularity in Asia, in particular, and the inability to record a financing charter to perfect security hinders access to this kind of financing.

With that in mind, the Liberian Government has introduced amendments to provide for the recordation of financing charters similar to ship mortgages. In addition, the amendments to Liberian maritime law clarify that it is not necessary for evidence of mortgage debt to be provided or recorded together with mortgage instruments. They also make provision for a definitive definition of the term ‘vessel’ under Liberian law that includes permanently moored watercraft. Moreover, the amendments embrace several other administrative improvements such as a reduction in the number of original mortgage instruments required to record a Liberian mortgage and clarifications related to the physical marking of the vessel.

Scott Bergeron, CEO of the Liberian International Ship & Corporate Registry (LISCR), the US-based manager of the Liberian Registry, says, “The recent legislative initiative by the Republic of Liberia to amend its maritime law is yet another example of Liberia identifying the needs of shipowners and operators as well as those of their ship financing and legal advisers.

“The Liberian Registry has experienced tremendous growth in Asia over a number of years. Most recently, that growth has accelerated following enactment of the historic Agreement on Maritime Transport between the People’s Republic of China (PRC) and the Republic of Liberia, under which Liberian-flag vessels are charged a preferential rate for tonnage dues when visiting any port in China. The added ability to record a financing charter as a mortgage enshrined in the recent maritime law amendments will strengthen still further the high level of mutually beneficial co-operation which exists between Liberia and its Chinese partners.”

The text of the Liberian maritime law amendment is available on the Liberian Registry’s website at www.liscr.com/liberian-maritime-law. Queries regarding the amendments should be addressed to legal@ycfmaritime.com


The Liberian Registry has a long-established track record of combining the highest standards of safety for vessels and crews with the highest levels of responsive and innovative service to owners. Moreover, it has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and protection of the marine environment. www.liscr.com

USCG report confirms Liberian Registry’s stellar PSC record

The Liberian Registry has seen a 62 percent reduction in vessel detentions in the United States over the past three years and, for the fifteenth year in a row, is not among those flags targeted by the US Coast Guard (USCG).

Alfonso Castillero, CCO of the Liberian Registry, says, “Despite efforts made by other flags to confuse the industry, the USCG 2017 Annual Performance Report for Port State Control (PSC) makes it clear that, far from being targeted by the US Coast Guard, Liberia continues to provide effective, quality compliance solutions for its fleet. Liberia is not on the list of USCG-targeted vessels.”

The Liberian Registry continues to improve its PSC performance year after year, and currently has the fourth most vessels of any flag state enrolled in the USCG’s Qualship 21 programme. In addition, it is White-Listed by the Paris MoU and the Tokyo MoU. Indeed, it had the lowest detention rate of all major flags (1.67%) in the 2017 Paris MoU. It has also recorded a 20% reduction in detentions over the last three years under the Tokyo MoU, thanks to a 2% detention ratio change during that period which is the is the biggest positive increase among all major flags in the Tokyo MOU.

In China, meanwhile, Liberia has achieved a 41% reduction in detentions thus far in 2018 compared to last year and is the only major flag able to show a decrease in detentions over the past three years in China. Finally, in Australia, there has been a 49% reduction in detentions of Liberian-flag ships over the last three years and a 6.4% detention ratio change over that period which is the biggest positive increase of all major flags in Australia.

Alfonso Castillero says, “With the use of a fully staffed Risk Assessment Department at its US head office, and an automated LRIT-based Compliance Assistance Program, the Liberian Registry works with its clients to ensure that their vessels are well-prepared for port calls in the world’s high-focus jurisdictions, and that any issues are properly reported and addressed.

“This is one reason why the registry has seen such an impressive increase in growth recently. Owners have benefited tangibly from Liberia’s SeaSafe System and Compliance Assistance Program, without additional cost, and this has helped us expand into new markets. For example, last year we were the fastest growing flag in South Korea, a new and expanding market for us. In China we have had opened three new offices simply to keep up with demand. And value-added services such as SeaSafe help us maintain our position as the largest open registry in Greece.

“The Liberian Registry continues to invest in improving and maintaining quality, working closely with owners and managers to keep their vessels operating safely and efficiently. Out Port State Control record shows how effectively this is working, both in the US and elsewhere around the world.”


The Liberian Registry has a long-established track record of combining the highest standards of safety for vessels and crews with the highest levels of responsive and innovative service to owners. Moreover, it has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and protection of the marine environment www.liscr.com

Liberian Registry strengthens Asia team to meet growing demand

The Liberian Registry has announced strategic new appointments in a number of key areas within the Asian regional offices operated by its US-based manager, the Liberian International Ship & Corporate Registry (LISCR).

Ms. Wan Ching Chiang has been promoted to Registrations Manager for the Liberian Registry in Singapore. Ms. Chiang is embarking on her fifth year with the Liberian Registry, which she joined as Registrations and Corporate Co-ordinator. In her new role, Ms. Chiang will be overseeing vessel mortgage and corporate registrations for the Liberian Registry’s fast- growing number of South-East Asian clients. Ms. Chiang graduated with a Bachelor of Science degree in Business Administration and has previous experience with working in the financial industry with both HSBC and Barclays Capital.

The Liberian Registry’s Greater China team has been bolstered by the additions of Mr. Pao Chi Hsu and Mr. Owen Fu as Technical Managers. Mr. Hsu, who holds a Master’s Degree in Ocean Engineering, has previously worked as a lead class surveyor in the Greater China region and as a vessel superintendent for a leading bulk carrier owner. Mr. Fu is taking on this new challenge following a successful career as a leading port state control officer and department head for China’s Maritime and Safety Administration in the port of Ningbo. Mr. Fu obtained his Master’s Degree in Naval Architecture from Shanghai Jiaotong University, and his Ph.D. in Engineering from Shanghai Maritime University. Mr. Hsu’s and Mr. Fu’s expertise with vessel compliance, audits and port state support has played a critical role in significantly reducing the number of detentions of Liberian-flagged vessels in the Tokyo MoU region.

LISCR CEO Scott Bergeron says, “The Liberian Registry has experienced tremendous growth in Asia over a number of years. Most recently, that growth has accelerated following the historic Agreement on Maritime Transport between the People’s Republic of China (PRC) and the Republic of Liberia, under which Liberian-flag vessels will be charged a preferential rate for tonnage dues when visiting any port in China.

“The Liberian Registry is committed to expanding its network of professionals to meet increasing demand, providing expertise and advice when and where it is needed, and adding to our core strength of offering timely, informed and innovative service to our continually expanding client base.

“Asia is a vibrant and vital hub in the worldwide shipping chain, and increasing numbers of owners from the region are putting their trust – and their ships – in the Liberian Registry. These recent executive appointments confirm our commitment to providing the best service available to shipowners, operators and managers anywhere in the market today.”

The Liberian Registry has long been considered the world’s most technologically advanced maritime administration. It has a long-established track record of combining the highest standards of safety for vessels and crews with the highest levels of responsive service to owners. Moreover, it has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and protection of the marine environment.

www.liscr.com

BV to class largest container ships built in China

Leading international classification society Bureau Veritas is to class three Ultra-Large Container Ships (ULCSs) to be built for China State Shipbuilding Corporation (CSSC) and chartered to French operator CMA CGM. The ships are due for delivery in 2015. 

The 16,000 teu vessels will be the largest container ships built in China to date. One will be built at the Shanghai Waigaoqiao Shipbuilding (SWS) yard, and the other two at Shanghai Jiangnan Changxing Heavy Industry, part of which came under the management of SWS this year.

In recent years, Chinese shipyards have secured orders for increasingly large box ships, and the three new 16,000 teu ships are only a fraction smaller than the largest container vessels being built today in Korea. The design was developed by the Marine Design and Research Institute of China (MARIC) in co-operation with BV, which performed the drawing approval and conducted a thorough structural examination.

The vessels will have an overall length of 399 m, a beam of 54 m, and a draft of 16 m. Special consideration has been given to hydroelastic design (whipping and springing) issues, which are so important for this size of ship. A hydroelastic examination was performed using BV’s HOMER software in order to take into account extreme whipping loads due to slamming and additional fatigue damage due to springing, factoring in the elastic structural response of the ship. This review provides a higher level of safety compared to the rigid approach traditionally adopted to such issues, and is mandatory under BV Rules for ULCSs of 300 m and above. On the strength of this examination, BV’s WhiSp2 notation has been assigned to the ships.

The vessels will be also granted BV’s VeriSTAR HULL DFL 25-year notation, which certifies various structural details, including hatch corners and coamings, for 25 years of fatigue life, following a spectral fatigue analysis with a 3D finite element analysis model. The importance of fatigue for large container ships, which generally lack torsional rigidity and become more elastic with size, has been confirmed by real measurements on board ULCSs classed by BV.

The 16,000 teu ships will be able to operate at a maximum speed of over 23 knots with a single-screw propeller directly coupled to a 69 Megawatt, 2-stroke electronic engine. The vessels’ environmentally friendly profile is attested to by BV’s class notations CLEANSHIP and FORS. The latter incorporates special arrangements to ensure that the ship’s fuel oil tanks are safely emptied in case of emergency, minimizing the risk of pollution. This is an important safety aspect considering the size of the fuel oil tanks of ULCSs

Steel cutting for the new vessels is due to begin next year and the ships are expected to be delivered in 2015. 

 l Bureau Veritas is a world leader in conformity assessment and certification services. Created in 1828, the Group has 59,000 employees in around 1,330 offices and laboratories located in 140 countries. Bureau Veritas helps its clients to improve their performance by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility.

 www.bureauveritas.com for corporate information                              www.veristar.com for marine information

 For more information:

    

Konstantinos Chatzitolios

Manager Containerships

Bureau Veritas

+33 1 55 24 72 34

konstantinos.chatzitolios@bureauveritas.com

Graig secures ten-vessel supervision contract for Global Union suezmax newbuildings

Graig China Ltd (GCL), part of the Cardiff-based Graig Group, has been contracted by Hong Kong-based Global Union Shipping Limited to supervise the construction of ten 157,000 dwt suezmax crude oil tankers building at Jiangsu Rongsheng Heavy Industries Co Ltd in China. The last vessel in the ten-ship order is due for delivery in January 2014.

GCL is supervising – or has already delivered - forty other newbuildings at the Rongsheng shipyard. The total number of ships in GCL’s newbuilding programme is now nearing 150.

Global Union says that one of the main reasons it chose Graig for the supervision of the suezmax tanker newbuildings was the fact that it had been very impressed by the excellent performance of GCL and the fitting-out evident in other newbuildings in China supervised by Graig.

The Graig Group is a broad-based international ship owning and shipping services group delivering technical and commercial ship management, newbuilding supervision,  lay-up services, ship design, ship owning, ship finance and marine consultancy to global clients who appreciate personal service.

Graig has been building, managing and owning ships since 1919. Today it provides technical management and crewing for a mixed fleet of vessels on behalf of a number of owners. It has supervised over 100 newbuildings for itself and major shipowners and provides technical consultancy and management support services to two major banks with a financed fleet of over 100 vessels. Graig develops advanced designs such as the successful Diamond series of bulk carriers. It can source yards and finance and provide newbuilding supervision and follow up with in service management. Based in the UK, Graig has offices in Cardiff, London, Shanghai, Hong Kong, and Manila. www.graig.com

For further information contact:                       

Chris Williams
Graig                                                                          

+44 2920 440 200                                                     chris.williams@graig.com