Apart from registration and the benefits it offers, what can shipowners find in Malta?

The Maltese flag represents an entire sector in its own right, as vessel registration generates a wide array of activities involving numerous stakeholders. Beyond ship registration, Malta provides a comprehensive range of maritime services, including transshipment and cargo handling at its natural ports, towage services and supply vessel operations, pilotage, ship repair, as well as surveying, insurance, banking, and legal support – creating an extensive ecosystem. Shipowners can also benefit from Malta’s favourable fiscal regimes to engage in additional activities, such as ship management and crew services.

What do foreign shipowners think of the way maritime cases are handled in Malta?

Malta’s legislative system has a very strong reputation in international shipping circles. This is mainly due to the robustness of its laws, such as the Merchant Shipping Act, and the expediency with which our courts handle maritime cases. Malta is fortunate to have judges who understand the nature of the maritime industry, where expediency is the guiding light. This is evidenced by the volume of judicial sales and enforcement of mortgages that are effected in Malta, reflecting the confidence shipowners and financiers have in our courts. The recent announcement regarding the establishment of a Commercial Court with jurisdiction over maritime cases will give additional clout to Malta’s maritime judicial system.

“Malta is fortunate to have judges who understand the nature of the maritime industry, where expediency is the guiding light.”

What are the major challenges facing the maritime sector over the coming years, and what is Malta doing to prepare itself to meet them?

The maritime industry, both locally and regionally, is facing a combination of unfavourable conditions that present serious challenges for operators and those reliant on the connectivity that shipping provides.

There are regulatory issues, mainly emanating from the EU, which is promulgating directives that create an unfair competitive environment for small peripheral members states like Malta and Cyprus. These new regulations apply to EU states but apply differently, or not at all, to nearby ports or jurisdictions outside the EU, where business may instead be diverted. Other challenges arise from international political, diplomatic and military factors, such as the war in the Middle East and the Houthi attacks, which are diverting vessel traffic away from the Mediterranean.

The twin transitions of digitalisation and decarbonisation are also posing serious challenges. While the maritime industry is committed to achieving carbon neutrality, technology is struggling to keep up with the industry’s needs, particularly regarding new fuels, creating an uncertainty that is not conducive to investment.