Isle Of Man Publishes Year-End Report

by Robert Lee, Tax-News.com, London

04 April 2011

Dick Welsh, the Director of the Isle of Man Shipping Registry has welcomed, in the Registry’s annual report, the confirmation that the Isle of Man is home to the fastest growing registry in Europe, having seen tonnage growth of 14.9% in 2010, and is the fourth fastest globally.

“This kind of accomplishment does not happen by accident and this report highlights some of the great work of the team at the Ship Registry who each contribute towards making it the success it is today,” he said.

“This year has seen further interest from new clients in the Far East following our continued marketing and promotional efforts in Japan and Singapore, which has once again added significant tonnage to the register. This has been achieved without losing sight of our traditional customer base in Europe where we continue to attract tonnage from new and existing clients.”

In 2010, 139 vessels were added to the register, increasing the gross registered tonnage (GRT) by almost 15% (1.6m GRT). Manx fleet tonnage surpassed 12m GRT during the year, smashing the year’s target for tonnage growth of 3%.

In addition, the year saw the overhaul of the Isle of Man’s fee system. For the first time in its 26-year history the Registry levied an annual fee for registration, which was introduced as part of the Registry’s drive to narrow the operating deficit as the costs of running an international register increases year-on-year under the burden of new international maritime obligations. “Unlike our competitors,” Welsh explained, “this was achieved on a fixed-fee basis, independent of ship type and tonnage and was well received by our stakeholders after extensive consultation.” Set at GBP700 (USD1,130), with discounts for the registration of multiple vessels¸ the fee regime is highly competitive compared to larger ‘open registers’, Welsh said.

Also during the year, the Ship Registry received acclaim from the International Maritime Organization, when the Registry underwent a Member State Audit voluntarily. Welsh said the audit proved invaluable, resulting in a very positive report which highlighted some areas for improvement as well as providing very positive comments about best practice within the Isle of Man administration.

In addition, further recognition came through the Registry’s receipt of Qualship 21 status by the United States Coast Guard – recognition that the Registry has ensured that flagged vessels maintain high quality standards.

During 2010 the merchant vessel fleet peaked after growth of 5.5%, the Registry now having 416 registered merchant vessels on its books. Meanwhile, the number of commercial yachts registered reached an all-time high of 98 vessels. The Registry now has the 7th largest fleet in Europe (GRT) and the 18th largest fleet in the world (GRT).

Discussing the current year, the Registry disclosed that its major activities would be towards the adoption of Maritime Labour Convention regulations; consultation on such will be launched soon.

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