Red Ensign registries top of ICS performance table
The Red Ensign group of flag states have performed superbly in the latest International Chamber of Shipping performance table. But what sets them apart from their equally well regarded counterparts when it comes to superyachts?
The International Chamber of Shipping (ICS) has published its annual Flag State Performance Table. Thirteen flag states lead the way, with exemplary performance indicators. They are: Cayman Islands, Denmark, France, Germany, Greece, Isle of Man, Japan, Liberia, Marshall Islands, Netherlands, Norway, Sweden and United Kingdom.
Commenting on the purpose of the table, ICS’s director of external relations, Simon Bennett said: “[It] is intended to encourage shipowners to maintain a dialogue with their flag administrations to affect any improvements that might be necessary in the interests of safety, the environment and decent working conditions.”
There is however, an added purpose to the publication of the table. The ICS is keen to dispel traditional prejudices towards open registers, which have been largely viewed as ‘second tier’ when compared to the more established flags. This, according to ICS, is ‘actually unhelpful.’ The table therefore, is collated using positive indicators. Lower ranked registers are thus because they have failed to demonstrate or secure these indicators.
There are obvious indications why the 13 leading flags hold the reputation they do. The United Kingdom has, perhaps, the world’s richest maritime history and its Red Ensign group of flags – which the Cayman islands and Isle of Man are part of – is globally respected. Scandinavia, Japan and northern Europe are shipbuilding powerhouses with vast commercial fleets, whilst West Africa boasts a prolific oil trade.
But whilst the burgeoning size of these registries is in evidence through their commercial fleets, many of the ‘leading 13’ have comparatively small numbers of superyachts on their books. According to data supplied by the Superyacht Intelligence Agency only 50 superyachts are confirmed to carry the German flag – despite its rich yachtbuilding heritage – whilst 104 carry that of fledgling superyacht power Malta.
This is of primary importance to his clients for Duncan Swanson, co-founder of Oceanskies, a Guernsey-based superyacht consultancy offering administrative support and advice for owners' representatives. “You have certain registries that really cater for yachts”, Swanson explained. “The reason Cayman has so many flags is in large part due to the quality of the registry – good surveyors, a good network of offices and a good operating system for yachts – and ditto most of the Red Ensign.”
Of course, registries focus on their bread and butter – be that luxury yachts, oil tankers or container ships – and tend to stick to what they know. But, as Swanson explained, “it’s fair to say that a large number of yachts are owned in jurisdictions that are governed by British law, and where lots of wealth management is located.” And it’s true that it is a “symbiotic” relationship, with these flags having to adapt their expertise in light of the fact that they have a lot of luxury vessels on their books.
The full ICS Flag State Performance Table can be viewed here.
Related Links
International Chamber of Shipping Website
Oceanskies Website
Commenting on the purpose of the table, ICS’s director of external relations, Simon Bennett said: “[It] is intended to encourage shipowners to maintain a dialogue with their flag administrations to affect any improvements that might be necessary in the interests of safety, the environment and decent working conditions.”
There is however, an added purpose to the publication of the table. The ICS is keen to dispel traditional prejudices towards open registers, which have been largely viewed as ‘second tier’ when compared to the more established flags. This, according to ICS, is ‘actually unhelpful.’ The table therefore, is collated using positive indicators. Lower ranked registers are thus because they have failed to demonstrate or secure these indicators.
There are obvious indications why the 13 leading flags hold the reputation they do. The United Kingdom has, perhaps, the world’s richest maritime history and its Red Ensign group of flags – which the Cayman islands and Isle of Man are part of – is globally respected. Scandinavia, Japan and northern Europe are shipbuilding powerhouses with vast commercial fleets, whilst West Africa boasts a prolific oil trade.
But whilst the burgeoning size of these registries is in evidence through their commercial fleets, many of the ‘leading 13’ have comparatively small numbers of superyachts on their books. According to data supplied by the Superyacht Intelligence Agency only 50 superyachts are confirmed to carry the German flag – despite its rich yachtbuilding heritage – whilst 104 carry that of fledgling superyacht power Malta.
The prestige of flying a Red Ensign flag still carries gravitas with superyacht owners.
There are 100 Isle of Man-flagged superyachts and 433 registered in the UK, implying a certain allure among owners to flying the Red Ensign. But, with 822 superyachts on its registry, the Cayman Islands clearly makes an attractive proposition – combining Red Ensign prestige with favourable purchasing structures. This is of primary importance to his clients for Duncan Swanson, co-founder of Oceanskies, a Guernsey-based superyacht consultancy offering administrative support and advice for owners' representatives. “You have certain registries that really cater for yachts”, Swanson explained. “The reason Cayman has so many flags is in large part due to the quality of the registry – good surveyors, a good network of offices and a good operating system for yachts – and ditto most of the Red Ensign.”
Of course, registries focus on their bread and butter – be that luxury yachts, oil tankers or container ships – and tend to stick to what they know. But, as Swanson explained, “it’s fair to say that a large number of yachts are owned in jurisdictions that are governed by British law, and where lots of wealth management is located.” And it’s true that it is a “symbiotic” relationship, with these flags having to adapt their expertise in light of the fact that they have a lot of luxury vessels on their books.
The full ICS Flag State Performance Table can be viewed here.
Related Links
International Chamber of Shipping Website
Oceanskies Website
Click here to become part of The Superyacht Group community, and join us in our mission to make this industry accessible to all, and prosperous for the long-term. We are offering access to the superyacht industry’s most comprehensive and longstanding archive of business-critical information, as well as a comprehensive, real-time superyacht fleet database, for just £10 per month, because we are One Industry with One Mission. Sign up here.
