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UK Ship Register E-Zine – Flagging-Up
UK Ship Register E-Zine – Flagging-Up
Welcome to the twelfth edition of Flagging-Up; the UK Ship Register’s quarterly e-newsletter.
Issue # 12 – Spring 2010
Covered in this issue are:
- UK Fleet Statistics
- Alternative Compliance Scheme
- Human Element Guide
- National Insurance Information Update
- Piracy Update
- Reminder: Application for a Change of Name or Port of Choice
- New Port State Control Directive MIN 380 (M)
- Posidonia 2010
- Health & Safety Guidance
- Long Range Identification Tracking - Thrane & Thrane SSAS Terminals
- Tonnage Tax Update
- CAM’s 24/7 and Swansea 24 hour Info-line Reminder
- Masters Guide to the UK Flag
- Voyage Data Recorder Annual Test Reminder
- Newsletter Contacts
UK Fleet Statistics
During the last four months 29 ships joined the UK Ship Register (UKSR) with a combined gross tonnage of 275,317 GT. Of these new registrations 21 were new builds, whilst the remainder transferred in from other flags.
These new registrations include 8 general cargo ships; 6 tugs; 2 oil/chemical tankers; 1 cruise ship and 12 vessels of other types.
Companies registering ships with the UKSR in the last 3 months include Carisbrooke Shipping, Serco Denholm Marine Services, Meridian Marine, CPO Tankers, Unicorn Shipping and Carnival UK.
The average age of vessels flagging-in during the last quarter was 5 years whilst the average age of vessels leaving the register was 19.
As at the end of April 2010 the UK Ship Register stands at 1,537 ships with a gross tonnage of 16,802,774.
The UK Ship Register welcomed the new superliner AZURA to the UK Flag following its delivery to Carnival UK. AZURA, has a tonnage of 115,055 GT and will be the joint largest ship in the P&O Cruises fleet, along with sister ship Ventura, and the second largest ship in the Carnival Fleet behind QUEEN MARY 2.
The superliner will be used in the UK market and is 250m long with accommodation for 3,100 passengers and 1,200 crew. She was built by Fincantieri Shipyard of Italy who has delivered 49 ships for the Carnival Group in the past 20 years.
Azura
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Alternative Compliance Scheme
The UK Ship Register (UKSR) is pleased to announce that the Alternative Compliance Scheme (ACS) will continue as a feature of the MCA’s survey and inspection regime.
ACS applies to cargo ships. It allows MCA to retain oversight of the ship, through International Safety Management System (ISM) audits and general inspections, whilst delegating all hardware surveys (for example the Cargo Ship Safety Equipment Survey) to those classification societies authorised by the UK.
The scheme has run as a trial since 2003 but following a review of its operation it is now an established feature.
During the trial period the UK has remained near the top of the ‘White List’, an internationally acknowledged published list which ranks, in terms of quality, the best shipping registers derived from number of ship detentions and deficiencies on each flag. There has been no other evidence that the ACS is detrimental to ship safety.
The ACS has reduced overseas survey costs for shipowners and has helped in attracting tonnage to the UK Register. Furthermore it enables MCA to focus its marine surveyor resource on inspection activity through the ISM system and targeted inspections.
At present there are 332 ships under the scheme with a gross tonnage of 11.33m and an average age of 8. This represents 21% of the UK Fleet in terms of ships and 66% in GT.
For a vessel to be eligible and to be considered, the following conditions apply:
- The vessel has not been detained within the previous 36 months.
- During any port state control inspection within the previous 12 months no inspection report shall have recorded more than 5 deficiencies.
- The vessel is classed with one of the Classification Societies authorised by the UK: ABS, BV, DNV, GL, LR, Class NK and RINA
- The owner shall permit access by the MCA to any or all records, files, reports, documents and certificates held or issued by the ACS classification society the vessel is classed with.
- The owner or operator shall notify the MCA one-month in advance of all in water surveys or dry docking dates.
MGN 345 provides more information.
MSF 4753 is the application to participate in the ACS and should be returned to one of the following:
UK Ship Register
Bay 1/25
Spring Place
105 Commercial Road
Southampton
SO15 1EG
Fax: +44 (0)23 8032 9447
e-mail: ukshipregister@mcga.gov.uk
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Human Element Guide At the recent Human Element Advisory Group (HEAG 12), the MCA launched its new human element guide “The Human Element – a guide to human behaviour in the shipping industry”. This was the result of a year long research project in collaboration with 3 key players from the commercial maritime industry – BP Shipping, Teekay Marine Services and The Standard P&I Club. Some 120 people attended the launch, including many leading figures in the industry, and heard speeches from Peter Cardy (MCA), Graham Westgarth (INTERTANKO) and Martin Shaw (BP). Hard copies of the guide are available from TSO (ISBN 9780115531200) The Stationery Office Publications Centre, Telephone (orders): 0870 600 5522 Please click here for further information and a PDF version of the guide. |
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National Insurance Information Update
HM Revenue & Customs (HMRC) Guidance
HMRC have recently issued new guidance about National Insurance contributions for mariners, employers and payers of wages. The new guidance takes account of the effect of new European Union social security legislation on the UK's National Insurance rules.
The new rules in European Community Regulations 883/2004 and 987/2009 take effect from 1 May 2010 and replace EC Regulations 1408/71 and 574/72 which previously coordinated the social security schemes of Member states.
The HMRC guidance can be found on their website.
The main points:
Article 11 EC regulation 883/2004
Before 1 May 2010 the basic rule in EC Regulations 1408/71 was that Mariners are subject to the social security legislation of the Member State where the vessel they are working on is flagged. This "flag state" is where they pay contributions. After 1 May 2010 the basic rule for European Union mariners will remain essentially the same - they are subject to the social security legislation of the Member state where the vessel they are working on is flagged. EU mariners on UK vessels continue to pay contributions to the UK.
Under 1408/71 rules there were some very rare exceptions to the basic "flag state" rule - these have been simplified so that after 1 May 2010 there will be only one exception. Where the mariner is remunerated by an undertaking in the Member State where he/ she resides, the legislation of the Member State of residence applies. Under these rules, the person paying the remuneration is to be treated as the employer under the legislation that applies.
Examples to illustrate the exception to the flag state rule:
(i)Steve is resident in the UK. He works on a Dutch flagged vessel. Steve is paid his remuneration by an agent of the shipping company. The agent is in the UK. Steve is subject to UK National Insurance and the agent is treated as his employer for National Insurance purposes.”
MCA understanding of the example "exception" above if it read "Member State" instead of "UK" is that the company/seafarer would be responsible for NI to the Member State not the UK.
(ii)Seafarer is an EU or non EU national and resident in an EU Member State (not UK). He works on a UK flagged vessel. He is paid his remuneration by an agent of the shipping company. The agent is in an EU Member State (not UK). If the person paying the remuneration (including an agent paying remuneration on behalf of an employer) is in the Member state where the mariner is resident, then the legislation of the Member state of residence applies. Otherwise, the flag state's legislation applies - here the UK.
Article 16 EC Regulation 883/2004 (Formerly Article 17 EC Regulation 1408/71)
It is also open to Member states to reach agreement to vary the normal rules. The Member states can choose to do this as long as it is in the interests of the individual. This provision is often used to correct honest errors by mariners, or to keep mariners paying to another social security scheme (usually in their home state) where that is in their interests.
The new rules are broadly the same as the old EU rules that existed before 1 May 2010. However, there are two important elements in the EU rules which before 1 May 2010, the UK had opted out of but which will now apply:-
Employers
Where a mariner is subject to UK National Insurance liability, an employer in another EU Member state is treated as being in the UK for social security purposes, including the liability to pay employer contributions and deduct the primary "employee" contributions from wages. Under this rule, an employer in another EU Member state is treated in the same way as a UK employer for National Insurance contributions and must set up a payment scheme with HMRC.
Debts
The EU regulations also contain a regime for mutual enforcement of social security (including NIC) debts. The UK is no longer opted out of these arrangements.
Advice about the calculation and payment of NICs, including how to register with HMRC and set up a payment scheme, are on HMRC's website:-
http://www.hmrc.gov.uk/nitables/ca42.pdf
http://www.hmrc.gov.uk/paye/intro/register.htm
To register by telephone, contact our New Employer Helpline on Tel 0845 60 70 143 (in the UK) or 0044 1355 359 021(from outside the UK). It's open 8.00 am to 8.00 pm, Monday to Friday and 8.00 am to 5.00 pm on Saturday and Sunday.
Further guidance about mariner rules can be found on the HMRC website.
UK Social Security costs remain among the lowest in the EU. In 2010/11 the main National Insurance rate for Mariners is only 11% between certain limits. Employers pay 12.8%. There is a discounted rate of 12 .3% for employers of mariners in Foreign-Going waters.
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Piracy Update
Since 2008 there has been a significant increase in piracy attacks in the Gulf of Aden and off the Coast of Somalia. This is a problem for the entire international community and for all shipping trading in or transiting these areas. The root of the problem is instability in Somalia and the solution lies on land. The UK has played a leading role in the provision of humanitarian, security and development assistance and is leading the efforts within the UN and at IMO to build capacity in the area. The UK is also working with the EU to put in place legal arrangements for the prosecution of detainees in Kenya and other regional nations.
The military response, in the form of coalition forces from EUNAVFOR Operation Atalanta, NATO and the Combined Maritime Forces, and from other navies, has had a positive effect and the UK has played a key role in this effort.
Therefore the UK Ship Register strongly encourages ships to adhere to the measures set out in the Best Management Practices to Deter Piracy off the Coast of Somalia, to register with EUNAVFOR's Maritime Security Centre web site and to report their progress to UKMTO Dubai. Taking these measures has been shown to be the best defence against pirate attack. Shipping companies should also note that Marine Guidance Note 298: Measures to Counter Piracy, Armed Robbery and other Acts of Violence against Merchant Shipping, available from the MCA web site, provides guidance on countering the threat of piracy. This document is currently being revised to take into account the specific problem off Somalia and is due to be re-published later in the spring.
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Reminder: Application for a Change of Name or Port of Choice
Please note that for any of the following changes you should contact your designated Customer Account Manager (CAM) in order to make the required arrangements.
- Change of Vessel Name
- Change of Port of Choice
- Change of Management Company
It is important that the CAM is contacted ahead of time to allow time for the relevant MCA departments to be notified and for the necessary certificates updated.
For name/port changes the following form should be completed: MSF 4741.
On completion of this form please forward to your CAM or to the UKSR.
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Notice to all Shipowners, Operators, Masters, Seafarers, Port Authorities and Pilots The purpose of this MIN is to notify stakeholders of the forthcoming implementation of the new Port State Control directive into UK law from 1 January 2011 and explain the changes to the Port State Control regime. MIN 380 can be viewed here. |  |
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Posidonia 2010
The UK Ship Register will once again be exhibiting at Posidonia to promote the benefits of registering ships with the UK Flag.
The exhibition will be held at the Hellenikon Exhibition Centre in Athens from 7 to 11 June and during the week we can be found at Stand No. 280/F in Hall 2.
Every two years the Greek maritime industry welcomes the international shipping community to Posidonia. The event is renowned for its networking opportunities and contacts made on the busy exhibition stands.
Throughout the week UK Ship Register representatives will be available to answer questions and respond to enquiries regarding any aspect of UK registration. If you would specifically like to arrange a meeting prior to the event then please contact us on either of the following:
Telephone: +44 (0)2380 329 197
E-mail: ukshipregister@mcga.gov.uk
Information for visitors wishing to attend the exhibition can be found here.
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Health & Safety Guidance
Following the implementation of the Merchant Shipping and Fishing Vessel (Control of Vibration at Work) Regulations 2007, and the Merchant Shipping and Fishing Vessel (Control of Noise at Work) Regulations 2007, the Maritime and Coastguard Agency has produced for the industry three Codes providing guidance and interpretation of the requirements in order to comply with the regulations.
- Code of Practice for Controlling Risks due to Noise on Ships
- Code of Practice for Controlling Risks due to Hand-transmitted Vibration on Ships
- Code of Practice for Controlling Risks due to Whole-body Vibration on Ships
Click here to find out how to obtain your copy.
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Long Range Identification Tracking - Thrane & Thrane SSAS Terminals
EMSA has asked the UK to remind owners that vessels with Thrane & Thrane SSAS equipment on board will need to be reconfigured or updated with new software. There have been instances where vessels are over reporting and EMSA has stopped the equipment.
Technical Note 4 issued by EMSA has further information concerning this issue. If your vessels carry T&T SSAS equipment, please take a moment to familiarise yourself with this information.
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Tonnage Tax Update
There are currently proposals to bring Payments in Lieu of Training (PILOT) payments under the tonnage tax scheme into line with actual training costs.
This consultation seeks views on the Maritime Training Trust's proposals to up rate PILOT under the tonnage tax training commitment to bring them more into line with actual training costs. The aim is to encourage companies to provide training rather than to pay PILOT.
The latest information can be found on the Department for Transport website.
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CAM’s 24/7 and Swansea 24 hour Info-line Reminder
Each company was allocated a dedicated Customer Account Manager (CAM) to provide on-going customer care with focused assistance throughout and after registration. The CAM’s are available 24/7. Their mobile numbers are as follows:
Annette Bowman: +44 (0)7767 256 800
Graham Candy: +44 (0)7990 801 954
If you are unable to contact your CAM, the duty surveyor can be contacted via the following number:
MCA Infoline - 0870 600 6505
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Masters Guide to the UK Flag
Please note that this document is regularly revised and can be found on the MCA website
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Voyage Data Recorder Annual Test Reminder
Companies are reminded that the annual test of the Voyage Data Recorder (VDR) should coincide with the survey for the Safety Equipment Certificate (SEC) as detailed in MGN 272. Depending on the timing of the survey this could mean that the interval between consecutive VDR tests is less or more than 12 months.
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Newsletter Contacts
If you would like to amend your contact details or add or remove any colleagues from the newsletter distribution list then please contact Daniel Tong at the following:
E-mail: Daniel.tong@mcga.gov.uk