For more information on how DeltaQuest can assist with you yacht and ship needs, please view out Marine Services section, alternatively, to speak with one of our consultants, please Contact Us.

Maritime terms that all vessel owners should know

It is advisable for all vessel owners and professionals operating within the maritime field, to learn the most commonly used and technical maritime terms. Purchasing, selling or simply owning a yacht or ship may see you faced with a number of complex legal documents and legislation to understand, and so it is vital to have a basic knowledge of the most useful and popular terms.

A selection of the top maritime terms are listed below:

In Rem

Under Admiralty Law, claims against vessels (as opposed to the owner of the vessel) are referred to as ‘in rem’.

Admiralty Law

Admiralty law is referred to as maritime law in many jurisdictions, and is the regulatory body of law that provides a clear framework for all maritime activity and related matters.

Abstract of Title

This term is in reference to the ownership history of a particular vessel and its complete lien transactions.

Bill of Lading

This term is useful for all vessel operators in the transportation of cargo industry. It can be abbreviated to BL or BOL and is a receipt that confirms the goods have been received.

Certificate of Ownership

This is in reference to a document which provides the proof of ownership of a vessel. Every vessel owner will have a certification of documentation and this will be issued from the Coast Guard.

Detect Notification

A detect notification is a type of notification used by vessel manufacturers where a vessel fails to comply with the appropriate regulations and industry standards.

IMO Number

All registered vessels have an IMO number related  to the International Maritime Organization they are registered with.

Maritime Lien

This term is applicable under admiralty law and is in reference to claims made against maritime property.

Registered Owner

A registered owner is the individual or company who has legal rights of ownership over a particular vessel, as recognized under maritime law.

Pure Salvage

This term refers to the situation where a person (salvor) is not contracted to salvage property from a sunken or destroyed vessel by its owner, but rather where the salvor simply finds property from the vessel – giving them the right to obtain compensation or ownership over it provided he informs the appropriate court.

For more information on registering yachts offshore, please view our Marine Services section, or Contact Us to find out how we can assist you.

Reasons for offshore vessel registration

Offshore flag states are widely regarded as favorable locations for vessel registration for a number of reasons. Unlike the more conventional flag states, offshore jurisdictions offer an array of benefits from low taxes, inexpensive registration fees, and favorable maritime legislation. The conditions that offshore jurisdictions provide can enable you to achieve your personal, financial and marine related objectives in a legal and advantageous manner.

Although the advantages for each offshore location will vary, in general vessel owners can enjoy the following benefits:

• Tax free of low tax status
• Bespoke legislation and legal support for registered vessels
• Lower registration costs and renewal fees
• Exotic location
• No annual filing requirements expect payment of fees
• Low VAT rates
• Flexible requirements i.e. crew
• International registration recognition
• Confidentiality and privacy

A professional consultancy firm that specializes in offshore yacht and ship registration can guide you on the most suitable offshore flag state to choose which will allow you to meet your overall goals and remain within your financial boundaries.

For more information on the range of services we can assist with, please view our Marine Services page, or to find out how we can help you meet your yacht requirements, please Contact Us.

Why use a yacht trader

Using a yacht trader for initial research before buying a vessel is beneficial in a number of ways. Firstly, the information provided in a yacht trader is independent and impartial, which will allow you to ascertain the average price for your ideal yacht or sale price for your boat. A yacht trader magazine will also provide the latest adverts for vessels on sale, ensuring the market prices are reflected in the most up to date manner.

Using a trader magazine will also enable you to choose from a wide selection of vessel choices to meet your individual needs. Yacht brokers who work on a commission basis may be inclined to provide you with selective information and so it is vital that the information you get prior to buying a vessel is correct and impartial.

Published traders are known for enabling individuals to ‘find a good deal’ as it is a competitive advertiser where people selling boats must act not only within fair market prices but also in relation to what other sellers are offering, in order to make a sale.

Many yacht traders advertise vessels on an international scale, thus supplying readers with a magnitude of vessel types ranging from the low to high-end price scale. Depending on your financial and personal specifications, you can find your ideal yacht overseas by simply reading your chosen yacht trader magazine, should this appeal to you.

As mentioned, a trader can be published as an offline magazine or as an online site, making them highly accessible to people from all locations. With the increasing popularity of online publications, it is easy to ascertain that online traders are more widely used due to their accessibility and ease of site navigation.

Selling your vessel is far more beneficial when advertising in a yacht trader as you get maximum exposure. This means that you are more likely to get a higher price for your vessel due to increased competition from interested buyers globally.

There are many yacht traders in publication and it is advised that you research thoroughly before selecting the trader to advertise you yacht in. Additionally, when seeking to buy a vessel it is advised you research across a number of credible trader platforms.

To find out how DeltaQuest can assist you with obtaining marine finance, or for more information on the advantages of obtaining maritime finance, please click on the following link Marine Finance.

Benefits of marine finance

Marine finance enables those who wish to purchase a ship or yacht to do so without having the full amount of money upfront to buy it. By adopting a beneficial marine finance plan, individuals and companies alike can purchase their desired vessels without having to wait several years to save up, instead they can have the boat and operate it as they see fit while paying it on a monthly basis.

Additionally, prospective buyers and companies are able to expand their operations through buying new vessels without imposing on them the necessity to have the total capital available at the time of purchase.

There are many reasons why obtaining maritime finance is a favored solution when compared to simply buying a vessel outright, some of these reasons are explored below.

• Financial flexibility and freedom – This is one of the primary reasons for obtaining marine finance. Marine finance will enable individuals and companies to save money while also enabling them to grow their capital each month enabling them to continue their operations while paying for the vessel.
• Tax benefits – Many jurisdictions will provide advantageous tax breaks for those engaging in a marine finance plan. Although the tax benefits will vary according to the country, this is a favored reason for individuals and companies to use a marine finance plan to purchase a vessel.
• Business opportunities – Marine finance provides individuals buyers and companies the opportunity to expand their business and operations through purchasing a number of vessels to support their business operations.
• Financing plan – There are numerous advantages provided through both conventional and standard financing plans provided the plan you adopt will ultimately meet your long-term business and personal needs.
• Credit rating – Through meeting your monthly repayments as stipulated by the terms and conditions of your marine finance plan, you can enhance your credit rating and improve your credit history. This ultimately means that you will improve your financial position to obtain further financing.

By paying monthly or as stipulated by the marine finance plan, vessel buyers are able to continue with their daily operations and activities without a great deal of disruption. If it was necessary for all buyers to save up the total sum of money in advance of buying a vessel this would be highly detrimental to both the buyer and the yacht trading industry as fewer people and companies would purchase boats.

To learn more about the marine services that we can offer, please view our Marine Services page or Contact Us.

The definition and scope of shipbuilding

Shipbuilding takes place in shipyards that are built specifically for the construction of marine vessels. Normally, once the initial design and detailed design are completed, the next appropriate step is to actually build the ship, and this is performed by specialist engineers, marine experts and boat builders.

It is imperative that the vessel is built in full compliance with industry regulations, health and safety restrictions, and other quality standards; this will ensure the ship is certified and seaworthy for its intended use. Irrespective of whether the ship is to be used for private, commercial or even military use, they must still adhere to the same construction and quality standards when being built.

Shipbuilding is relatively large in scope and includes every stage of construction, after the designs have been finalized. In addition to construction, ship repairs and maintenance are also performed in a shipyard and will typically be conducted by the same specialists – shipbuilders, marine specialists and industry construction experts.

Shipbuilders, sometimes referred to as shipwrights, are vital to the sound construction of ships.

When enlisting the services of a shipbuilder, you should be aware of who the governing body is. Typically, shipbuilding will be the responsibility of the jurisdictions marine classification society, and it is usually their duty to supervise the activity to ensure compliance.

Depending on the jurisdiction, the term shipbuilding may be referred to as another name, such as naval engineering. Irrespective of the official title, the standards, procedures, and practices of shipbuilding will remain more or less the same across all jurisdictions.

If should be noted that not all forms of shipbuilding, repair or maintenance is required to be performed in a shipyard. Often times repair and maintenance is conducted on the vessel while at sea, however this is only where it is safe to do so, and the repair needed will not put the ship in peril at sea. Further to this, some vessels that require maintenance can be docked at a port, for the repairs to be done.

When seeking a credible shipbuilder, it is vital that you base your decision on their experience, credentials and ability to meet both your personal and financial requirements.

For more information on the RS or to find out how DeltaQuest can assist with yacht registration, please click on the following link to view our Classification Societies page or Contact Us.

The scope of the RS explained

The Russian Maritime Register of Shipping performs all duties in line with the International Conventions and Codes ensuring that they meet the necessary standards to maintain and develop a reputable maritime environment. The RS aims to operate to the highest of standards and this is evidenced by their membership to the standard of ISO 9001 quality standards.

To understand the responsibilities, scope and duties associated with the RS it is advised that all vessel owners seeking yacht registration under the Russian flag, to consult with a professional consultancy. By utilizing the services of a yacht broker or professional consultancy firm, it will enable the vessel owner to obtain an independent and impartial professional opinion about the RS.

The main duties and responsibilities of the RS cover a broad spectrum of areas ranging from the issuing of certificates and reports to ships and offshore installations, to the controlling and monitoring of ships in line with standards.

Additional areas of expertise, which fall under the remit of the Russian Maritime Register of Shipping, include but are not strictly limited to the following;

• Survey and issue certificates and reports for ship machinery and equipment including cargo handling gear
• conduct tonnage measurement activities
• Consistently ensuring compliance with the International Conventions and Codes requirements
• Issue certificates on behalf of applicable government states
• Survey and issue certificates for industrial products and processes
• Ensure effective safety management systems are in place for shipping companies and vessels
• All companies and vessels that are compliant with the International Management Code for Safe Operation of Ships and for Pollution Prevention will be issued a certificate by the RS
• Conduct analysis and monitor vessel data analysis from maritime administrators, port authorities, and vessel owners

The RS strives to perform all necessary duties and maintain responsibility for the safe navigation of ships under its scope of duty of care. With high quality standards and a solid commitment to the safety of vessels at sea, the RS is regarded internationally as a credible and sought after classification society for vessels to be associated with.

For more information, please view our Marine Insurance page, or to find out how we can assist with you specific marine insurance needs, please Contact Us.

Importance of marine insurance

In general, marine insurance is a policy adopted by a vessel owner in order to limit liability and ensure financial cover in the event of any crisis, damage or other risks at sea. Typically, this type of risk management policy can cover any category of boat, form yachts to cargo ships, however the type of insurance policy will vary depending on whether the vessel is for private or commercial use, and whether it will carry persons on board or just cargo.

It is a legal requirement for boats to have a suitable insurance cover in order to navigate international waters.

It is not only for legal compliance that marine insurance is required, but also for security and peace of mind when it comes to operating and maintaining a boat. The risks faced at sea are unpredictable and can result in death or sinking of a boat with a change in the weather. It is therefore one of the most dangerous areas of transportation and those navigating on open seas should subsequently obtain the necessary liability and financial cover.

Most marine insurance covers will protect the boat and its onboard equipment, cargo and persons from the point of departure to the final destination; thus ensuring any damage or injury experience on the journey is covered.

Natural disasters such as pollution, hurricanes and tidal waves can be included within a marine insurance policy to ensure any damage caused by these events will render the vessel owner non-liable and financial cover will be given. Other forms of risk management needed by ship or yacht owners is for the break down or failure of the engine, or loss of other necessary equipment onboard that is essential to the safe operation of the boat.

Marine insurance is a valuable, necessary, and highly beneficial risk management plan to invest in; payments can be made monthly and a plan can be found that would suit not only your vessel requirements but also your financial objectives.

A professional consultancy firm or independent yacht broker can help you decide on the most appropriate type of risk management plan to adopt in order to safeguard you both financially and in terms of liability when operating your ship or yacht. There are many different policies available and as such, selecting the right plan can be relatively confusing for boat owners. Understanding which policy they may need is vital to the successful operation of their vessel while also ensuring that all legal and marine standards are complied with.

For more information on how DeltaQuest can assist you with your yacht or ship registration in a favorable flag state, please Contact Us or complete our online Application Form to proceed in obtaining our expert assistance.

Principals provided under Admiralty law

Typically, each jurisdiction will enforce their own maritime legislation, however Admiralty Law is still applicable, especially in multilateral treaties, as the core of this Admiralty law is built on widespread international law and thus recognized in most countries worldwide.

Admiralty law in principle has two areas of specialism; it is the body for domestic law for general maritime activity, and it is the body for private international law, which regulates private entities operating vessels on the oceans.

The main features of Admiralty Law include but are not strictly limited to; maintenance and cure, personal injuries to passengers, maritime liens and mortgages, salvage and treasure salvage, and piracy. Within these areas, shipping, sailors, transportation of goods and passengers by sea, marine navigation and marine commerce are all included. The maintenance and cure aspect, as enforced by the Law, is the obligation and responsibility of ship owners to provide free medical care to seamen in the event of an injury on duty. Further to this requirement, ship owners are also expected to pay the expenses or “maintenance” of the sea worker while they are recovering from their injuries.

With regards to personal injuries to passengers, Admiralty provides that although the vessel owners have a duty of care towards their passengers, it may also be required for the injured party to prove the ship owner was in fact negligent, thus causing the injury.

Maritime liens and mortgages will be given with a lien against the vessel in question as a form of guarantee of payment. Under Admiralty Law the lien can only be enforced by arresting or seizing the vessel and a case brought to federal court. It is therefore the right for creditors and seamen to have Maritime Lien against a vessel to ensure they are paid their wages

Principals provided for under the law include enforcing the rights of rescuers to claim Marine Salvage awards for the recovery of lost property at sea. Further to this, salvage only applies to the saving of property and now persons as all persons in peril should be saved without the expectation of a reward. The law provides two primary types of applicable salvage, namely contract salvage and pure salvage. Pure salvage can be referred to as merit salvage and indicates that there was no prior or existing contract between the owner of the goods salvages and the salvor. Contract salvage on the other hand provides a contract drafted between the owner of the goods lost at sea and the salvage party, by which the reward for salvaging the goods will normally be stipulated within the contract prior to finding the goods.

Many common law countries follow English Admiralty Law or imposed their own maritime statues that are closely modeled on British maritime law frameworks. The US to contract has its own Admiralty Law.

Cases involving maritime contracts, torts, injuries, and related maritime offenses are held in an Admiralty court, which is commonly referred to as a maritime court.

It is highly advised that all participants in maritime activity, whether a ship owner, vessel operator, shipping company, seaman or vessel passenger, should seek impartial advice and guidance on their rights and obligations as provided by applicable Admiralty Law. It is further advised to research the scope by which you are protected by Admiralty Law as this will ensure your rights are enforced and needs are met in a fair and legal manner

DeltaQuest consultants are specialists in yacht registration and marine services and can provide you with assistance in selecting a favorable flag state. For more information on how we can help you meet your yacht registration needs, please Contact Us.

Importance of registering a yacht

As mentioned, registering your yacht is one of the most important steps to consider when purchasing and owning a vessel. Selecting the flag, in which the yacht is registered under, is crucial to get right, as the flag state will determine the rights, advantages, obligations and restrictions imposed on the yacht and its intended activity.

Choosing a flag state is usually influenced by the services and benefits required by the vessel owner in order to meet personal, financial or business related goals. Each flag state varies in terms of application procedures for yacht registration and so this should also be taken into account.

Yacht registration is very important for a number of reasons, some of which are listed below:

• Tax benefits – many yacht owners choose to register their vessel in flag states that provide favorable tax rates such as lower VAT.
• Costs – certain flag states will offer yacht registration at a far lower cost than other flag states, and many times, there are flexible requirements in terms of crewing.
• Stability – registering your vessel under a flag that is renowned for its stable political, financial and legal environment will ensure your yacht is faced with lower risks.
• Protection – through registering your vessel with certain flag states you can enjoy protection and assistance from British Embassies and Consulates throughout the world.
• Privacy – yacht registration in many favorable flag states can be done anonymously, thus heightening the level of privacy of the yacht owner. Confidentiality between the flag state and vessel owner with regards to registering an offshore structure will enable the limiting of personal liabilities and risks.

Registering your yacht will ensure that it is considered legally as a fully functioning entity. The flag state chosen by the vessel owner will impose its rules, marine standards and regulations onto the vessel and vessel owner while also protecting the vessel while it is registered under that flag.

One of the easiest and most recognized ways to prove yacht ownership is to register your vessel as this acts as a form of ownership verification for authorities. In order to obtain marine insurance it is necessary to register your vessel: without marine insurance your are leaving your yacht exposed to damage, risk and costs that could otherwise be avoided.

To learn about obtaining marine insurance, please click on the following link to view our Marine Insurance service page.

Benefits of obtaining marine insurance

The risks faced by boats at sea are numerous and as such, the liabilities imposed on vessel owners can be financially crippling. The risks of injury or death to passengers and seamen are also high as weather conditions and vessel damage while at sea, can be temperamental and difficult to foresee. It is therefore imperative for boat owners to be covered with the most appropriate form of marine insurance.

By obtaining a favorable insurance policy, cargo ships can ensure limited liability with regard to damage or loss of expensive goods carried by the ship. Many ships transporting goods will be expected to travel long distances and therefore the risks of loss or damage can be relatively high. A comprehensive marine insurance plan will ensure vessel operatives are protected and liability is limited should the cargo be damaged in transit.

Marine insurance can be a complex industry to understand; it is suggested that vessel owners seek the professional assistance of a yacht broker or professional consultancy firm that specialize in guiding individuals in obtaining favorable marine insurance policies.

Comprehensive marine insurance is vital in order to protect the vessel, cargo, onboard equipment, crew and passengers from harm. Marine insurance will also ensure the necessary compensations are in place for the injured parties where passengers, crew or cargo are affected while in transit.

The primary advantage of having a comprehensive and appropriate marine insurance plan is to ensure complete protection and limited liability against the following;

- Theft or hijack of vessel
- Theft of onboard cargo
- Mistakes in transportation (inappropriate handling)
- Accident while in convey (sinking or overturning)
- Variations in temperature causing complications
- Compensation for illness, injury or death of persons onboard the vessel
- Collision
- Pollution risks
- Cargo liabilities
- Labor and legal costs

Unlike many other forms of transportation vehicles; marine transport is subject to a broad range of risks that are out of the control of the vessel operator. It is therefore essential for all ship and yacht owners to have the appropriate insurance in place.