To find out how DeltaQuest consultants can assist you with your marine related needs, please view our Marine Services page, or Contact Us.

Operational cost of a ship

There are many forms of costs involved when operating a shipping vessel. These costs are vast compared to operating other forms of transportation and as such, should be taken into serious consideration by the vessel owner to ensure that the intended ship’s use will pay for the overall operational costs involved.

The most common types of costs, or ‘over head costs’ as they are usually referred to, include: insurance, manning, repairs, management and administration.
Manning of the ship – These costs extend to paying the ship’s crew wages, feeding crew members while onboard and providing medical assistance in the event of an emergency is very costly however ships would not be able to operate with its crew. Depending on jurisdiction and the type of shipping operation you have, the wages for the ship’s crew will vary. The wages will also vary according to the level of risk working at sea.

Marine Insurance – Insuring your ship with the required level of insurance is essential particularly where the ship has crew members on board, or is carrying valuable goods across international waters. Insurance will be needed for ship and cargo damage and also for medical insurance.

Repairs & Maintenance – Ships require regular maintenance and the cost of repairing expensive equipment on board the vessel can be high. Payment of raw materials and the cost of hiring mechanics and other service professionals to fix problems on a ship are necessary and should be taken into consideration when planning financial budgets.

Management & Administration – Depending on the systems used by the ship, and whether the shipping owner or company uses third parties for particular jobs, will determine the overall costs involved in the management and administration of the ship.

For more information on how DeltaQuest can assist you with registering your yacht, please click on the following link to view our Yacht Registration page or Contact Us.

How to name a boat

Renaming a boat is considered by many within the maritime industry to be very bad luck and unless the boats name is unsuitable then it is advised to simply keep the boat’s name the same. However, vessel owners are perfectly within their rights to change the name of their boat, and this is particularly so where the vessel is a used boat with a name that is unsuitable for the new vessel owner.

Where the new vessel owner decides the change the original name of the boat it is essential that the original name is removed from every part of the boat in which it is found, this includes the boat itself, life jackets and even pictures on board the vessel of the boat with its previous title. This is a superstitious theory but is honor all the same. It is deemed highly inappropriate in the boating world to have more than one name associated with one vessel.

It is traditionally thought that a boat will take on the name of a female, however this is not applicable to those who have no female loved ones or who feel a unique name is more appropriate for their boat. Not all boat names are named after female persons; in fact, many names are completely the opposite and will typically have a story behind it. An example of an unrelated boat name is ‘At Last’, which was chosen by the vessel owner due to the length of time he waited to purchase his dream yacht.

It is imperative to choose a name that you are completely happy with and not one that is to impress others when reading it, as the name of your boat should stay with the boat for its entire lifetime, and the process to change the name can be lengthy.

Boat owners can search for names in the NOAA fisheries Vessel Documentation database to establish if the name they have selected is already in use, or to establish how popular the name is.

There are two methods of fixing your selected boat name to the vessel itself and this can be achieved by painting the name onto the boat or using computer fabricated vinyl boat lettering.

Once a new name is chosen for the boat, it is necessary to christen the vessel with its new name with a ceremony involving the pouring, or smashing, of a bottle of wine or champagne over the boat.

To view the marine services DeltaQuest offers, please view our Marine Services section. Alternatively, Contact Us, to find out how we can assist with your marine related needs.

Popular marine services to obtain

The purchase of a yacht or ship is a big decision for individuals or companies to make, and so it is essential the purchaser has the all the necessary information before entering into any legal contracts of sale. Similarly, it is prudent to seek professional advice before choosing a particular marine insurance policy or marine finance plan, as these types of contracts are usually long term and involve a high level of financial commitment from the signee.

Professional consultancy firms and marine brokers will usually specialize in providing a range of advisory services and assistance in the buying and selling of vessels. Many specialized companies will also act as an introducer to reputable and suitable marine insurers and finance brokers.

The most sought after forms of marine services typically include the following;

• Yacht and ship registration
• Advice on favorable flag states for vessel registration
• Marine insurance
• Marine finance
• Advice on maritime compliance

There is no limit to the number of marine services an individual or company can enlist from a professional consultancy firm or yacht broker, in fact it is advised that you enlist as many marine services as you require. This will help to ensure you are aware of all laws, regulations and requirements to abide by, and will also ensure you obtain the most appropriate solutions to meet your specific marine needs.

The most popular form of marine service is yacht or ship registration. Irrespective of whether you are an experienced vessel owner or you have bought your first boat, it is prudent to seek professional assistance in registering your vessel as each flag state offers different benefits.

Depending on the vessel owner’s needs, some countries are more suitable than others are, especially in regards to favorable tax planning opportunities, low registration costs and bespoke maritime legislation. It is therefore advised to consult with a professional to find the most appropriate flag state for your needs.

It is vitally important that when enlisting the marine services of a yacht broker or consultancy firm, that you find a credible, experienced and reliable firm that is equipped to assist you with your requirements in an efficient and professional manner.

To find out how we can assist you with your yacht and ship needs, or to learn more on maritime legal compliance, please Contact Us.

Piracy explained

The act of piracy is, by law, illegal in every flag state throughout the world and individuals engaging in piracy are prosecuted accordingly. The term typically given to individuals and groups involved in piracy activities is pirates. Although piracy is more commonly known as the robbery and criminal activity at the sea, it can also refer to similar acts conducted on land or in the air.

There is a lot of confusion as to what constitutes piracy at sea. The main distinction is that piracy specifically relates to the act of criminality between persons of different vessels. This means that if a criminal act is conducted by a person on their own vessel or between people on the same vessel, this will not amount to an act of piracy.

Any act that is contrary to customary international law will usually be considered as an act of piracy. According to UNCLOS (United Nations Convention on the Law of the Sea) marine piracy is defined as any criminal acts from one ship to another, or persons from one vessel to another.

Such criminal acts include:

• Violence
• Detention
• Rape
• Depredation

It is essential to engage all necessary safety measures in order to safeguard your vessel, cargo and onboard machinery and crew against piracy. In the unfortunate event that you are faced with a situation of piracy, it is imperative to know how to handle the situation to minimize risk of persons on board and safety of the vessel.

There is no prevention for the act of piracy, and it is difficult to capture those responsible for it. However, there are a number of high-risk areas of the sea that pirates are known to control and so it is highly advised that you plan your route by avoiding these areas. It is also important to inform the appropriate coast guards, other persons, or your route and expected arrival times.

For information on the range of services DeltaQuest can provide, please visit our Marine Services page. Alternatively, to find out how we can assist you with your yacht or ship needs, Contact DeltaQuest.

Yacht brokers explained

Yacht brokers are regarded as specialized agents that act as a representative between the buyer and seller of a yacht or ship. The key purpose of a yacht broker is to provide impartial, independent and reliable advice and guidance to both parties involved.

The yacht broker can also be an individual who sells yachts or other marine vessels directly to their customers by firstly acquiring a range of vessels targeted at their intended audience. Their aim is to promote their yachts by providing a detailed description of the vessel and its condition, and publishing the advert online or in a yacht broker magazine.

A yacht broker is not necessarily an individual, but can also be a company. Whether the broker is a person or company, the primary aim of a yacht broker is to find the right vessel for their clients’ needs. The yacht broker will typically receive a commission after the sale of a yacht is agreed, and this commission issued to the yacht broker will be in line with the sale price of the yacht. However, where the yacht broker is also the owner and seller of the yacht, the fee will not be a commission but will be a price stipulated by the broker.

Yacht brokers are common in prime yachting locations such as the Europe and North America. Due to the competitive nature of yacht brokers and the various types of brokers available in the market, it is vital that you select the right yacht broker to help with your marine related needs. A professional consultancy firm that specializes in yacht and ship services can be of equal assistance to a yacht broker, or the consultancy firm can point you in the right direction of a credible and experience broker.

For more information on how to register a super yacht or to find out how DeltaQuest can assist you with your yacht registration needs, please view our Yacht Registration page or Contact Us.

Process of registering a super yacht

In order to register a super yacht, there are certain considerations that must be assessed before you select the flag state. Such factors that should be considered include;

• Whether the yacht is used for commercial or private use
• Where the owner wishes the yacht to be berthed
• Paperwork required by the flag state’s marine registry
• Taxes and fees imposed by flag states
• The type of asset protection structure you seek
• Technical, safety and crewing requirements as stipulated by the marine registry
• Type of marine insurance that must be sought
• Length and cost of the registration process

The registration procedure for registering a super yacht requires a great deal of initial research into the flag state’s registration costs and other standards that must be met by the yacht and its owner. It is important to consider the intended activity of your super yacht, i.e., if it intends to be berthed for the majority of its time or used for chartering international waters, as this may influence the choice of favorable flat state.

Once you have decided upon the flag state to register your super yacht, you must then commence the registration procedure, which will likely involve the submission of certain due diligence documents, financial statements, and details about the yacht and its owner.

Super yacht owners are advised to enlist the help of a yacht broker or professional consultancy firm that are experienced in all areas of yacht registration in offshore flag states, to guide them every step of the way. Consultancy firms can advise on the best marine insurance policies to adopt and can assist in administering the necessary documentation regarding the yacht specifications, title deed, sale of contract, engine size and the yacht’s country of origin.

Once you have gained approval in the pre-application stage, you will be required to send more information including bank reference letters, copy of your passport and other legal and important documentation. Once the marine registry is satisfied with your application, and the appropriate fees are paid, the yacht owner will then be issued a certificate of registration.

For more information on the marine services DeltaQuest offers, please click on the following link to view our Marine Services page, or Contact Us.

Responsibilities of the Danish Maritime Authority

The DMA was established in 1988 and is a government agency operating under the Danish Ministry of Business and Growth. Its purpose is to regulate maritime affairs in Denmark, which extends to conducting investigations for maritime accidents. The DMA is structured with a central authority and 8 survey offices. It also includes the Centre of Maritime Health and Safety.

The primary aim of the Danish Maritime Authority is to develop, monitor and promote the Danish shipping industry while also enforcing operational frameworks and conditions for a safe maritime environment. The agency’s focus and regulations apply to both merchant fleet and the fishing industry, however it should be noted that the DMA is not responsible for fishing vessel operations. Fishing operations in Denmark are regulated by the Ministry of Food, Agriculture and Fisheries.

The main responsibilities that fall within the scope of the DMA include;

• Ship registration
• Safety and navigation, prevention of terrorism, manning, occupational, and environmental health protection for the construction and operation of all Danish ships
• Safety and supervision of port state control of foreign ships in Denmark
• Ensure necessary training and education for seafarers
• Employment, health and social conditions of seafarers
• Enforce maritime laws and international industrial policies
• Enforce, develop and promote shipping policies

The Danish Maritime Authority is responsible for, inter alia, shipping policies, maritime law, and civil service advice from the Department of the Ministry of Business.

For more information on used vessel purchase checklists, please click on the following link to view our Purchase Checklist guide page, or Contact Us.

Used vessel purchase checklist analyzed

There are a number of factors to take into consideration when purchasing a used vessel, including the age of the boat, its condition and the sale price. If you are purchasing from a yacht broker, it is also prudent to research the credibility of the broker; a professional consultancy firm can oftentimes act as an introducer to reputable yacht brokers on your behalf. It is important to find out whether the dealership is a member of any marine federation or marine association. This will give you an idea of their ability and standards they impose.

Below are some examples of factors you should consider when purchasing a used vessel:

• Check the used vessel’s ownership documents and titles, VAT invoice and Registration Certificate
• Enlist the services of a professional marine surveyor to check the condition and certification of the vessel to ensure it is as the dealer is describing in terms of condition and good standards
• Establish what is included in the sale in terms of the equipment on the used vessel
• Find out if you can obtain the necessary marine insurance for the used vessel
• Ask if the used vessel has recently been repaired or if it requires any repairs
• Enquire whether the vessel is still under mortgage and if so, find out when the mortgage be paid off

Once you have selected the yacht dealership you intend to purchase a vessel from, it is important that you establish whether they have yachts for sale that meet your specific requirements and financial restrictions. When you have located your desired vessel, you should be prepared to investigate fully with regards to the condition of the vessel, its onboard and accompanying equipment, warranties and available finance plans.

For marine advice or to find out how DeltaQuest can assist with your yacht and ship needs, please Contact Us.

Characteristics of a Salvor

The salvor can be one person or an entire crew of salvors that are dedicated to performing marine salvages. In order to become familiar with your rights and obligations as a marine salvor you are advised to seek advice from a professional consultancy firm who are experienced in all aspects of maritime law. Jurisdictions will impose different marine salvage requirements to satisfy and so it is imperative you are aware of your rights.

The definition of a salvor can be described as the person or persons directly responsible for the salvage of a vessel and/or vessel cargo from danger or difficulty at sea. There are different categories of salvors that concentrate one particular types of salvage, including;

• Contract salvage
• Pure salvage
• Naval salvage

Typically, salvors are skilled in the area of engineering and have the expertise to carry out complicated rescues involving machinery such as cranes and other equipment. This is necessary as marine salvages can be dangerous and risk both the salvor’s vessel and the salvor’s life. A salvor will also generally have diving experience and be a competent swimmer.

The following types of tools are most prominently used by salvors when conducting a marine salvage;

• Floatation airbag
• Underwater cutting tools
• Diving equipment including helmet
• Hydraulic winch
• Hydraulic salvage pump
• Air compressor
• Crane
• Tub boat

Under maritime law, a salvor is required to file a claim to the relevant court with jurisdiction once he/she has salvaged a vessel and its cargo. The salvage award will be based upon merit of the service; however, the value of the salvage award will vary according to the type of salvage and value of the vessel/cargo. Usually, a salvor can expect a relatively generous reward for rescues of high value goods where he or she has risked their life, vessel, or equipment in order to perform the salvage.

DeltaQuest offer a broad range of services related to vessel registration. For more information on how we can assist you, please Contact Us.

Importance of vessel registration

Once you have purchased your vessel, you are legally obliged to register it under your selected flag state as a means to show you are the legal owner of the vessel and to enable the applicable maritime laws to protect it. Vessel registration ensures your yacht or ship will be registered as a legal entity.

Registering your marine vessel is very important as it ultimately provides recognition of ownership, both when the vessel is navigating international waters and while docked. It is also necessary to register the boat prior to seeking marine insurance. In order to safely and legally use your vessel you will need to obtain the most suitable marine insurance policy, however, this can only be achieved after the registration process is complete.

The process of vessel registration will vary according to the flag state selected, as each jurisdiction will typically apply their own procedures and prerequisites. Most jurisdictions will require the vessel owner to provide a detailed outline and specifications of the vessel, as well as all details of the owner and all individuals related to the vessel.

It should be noted that the registration fee and time will also vary from one flag state to another, and this should be considered carefully when selecting the flag state.

Upon completion and acceptance of the application, your vessel is automatically subject to the maritime laws of the jurisdiction you are licensed under.

When deciding to register your vessel, it is advised that you enlist the professional services of a consultancy firm that are experienced in international yacht registration processes and laws. There are various flag states to select from and it is necessary to be aware of all the benefits and obligations each jurisdiction will impose on the vessel owner, prior to initiating the vessel registration process.