Maritime Regulations Abound

Every time we turn around, there is a new regulation from the IMO, ILO, or flag states. As a management company, one of our most important jobs is to keep up with requirements so that we can help ensure our clients stay in compliance.

This is much easier said than done.

For example, the IMO (International Maritime Organization) posts its list of amendments to enter into force in the coming years. Eight amendments to regulations took effect in January 2023 alone. These amendments change the requirements of one or more of the thirty conventions the IMO has established. In addition, on top of the conventions, there are numerous codes such as the ISM and ISPS Codes, Fire Safety Systems, and many more.

Making matters worse, there are hundreds, if not thousands, of IMO Resolutions stemming from various committee meetings. Over time, resolutions are often replaced with newer versions, which makes finding the correct one like finding a needle in a haystack. You can search the Index of IMO Resolutions to find what you're looking for. Still, you must first know which committee it stemmed from, for example, the MEPC (Marine Environment Protection Committee), then which year the resolution was created. Don't worry; they only go as far back as 1974.

The ILO (International Labour Organization) has been much tamer, with only the Maritime Labour Convention, 2006 under its belt that affects the maritime industry. However, there have been several amendments since it went into effect in 2013.

Now for the icing on the cake. Flag states take completed conventions, codes, resolutions, etc., and interpret them through the lens of their national laws. Then, they add a dash of their experience and opinion to create their own unique guidance. These typically take the form of Marine Notices and Marine Guidelines, of which there are hundreds.

But Wait, We're Yachts

There are too many regulations for the maritime industry as a whole. Still, there is a whole other problem to compound this. All IMO and ILO Regulations were specifically conceptualized, argued over, crafted, reviewed, and published…for commercial ships, not yachts. The only hint to our industry within the conventions is whether or not that convention or section applies to a "pleasure yacht not regularly engaged in trade," right next to the mention of warships.

To the credit of the MCA, Marshall Islands, and other flags, yacht codes were developed to offset this imbalance. Where SOLAS requires orange life rings, the "yacht friendly" flags said, through their yacht codes, that white would be just fine. If you are unaware, yachts codes are a set of equivalencies and exemptions to the IMO and ILO regulations. In fact, there is no actual requirement for any port state (the country a yacht is currently in) to accept these differences. Some port states, like the USCG, have come out with specific notices related to this issue to officially recognize certain yacht codes as an equivalent standard.

Now, to the defense of the IMO, ILO, and flag states. The commercial shipping industry has been around for many, many years, and yachts have only started reaching the size of small ships relatively recently. So it is understandable that they have historically focused on commercial shipping, but this is a significant problem because they base pretty much everything on tonnage. If you are unaware, tonnage (be it Gross, Dead Weight, etc.) is a measurement of volume, not weight. Therefore, with commercial ships being MUCH bigger than yachts, all attention goes toward them because the metric used doesn't allow for anything else.

Let's look at this issue further. The commercial shipping industry consists of 2.2 billion DWT (dead weight tons, which is cargo carrying capacity) as of 2022. That tonnage comes from 58,000 ships. Well, yachts don't have cargo; therefore, DWT is zero. Thus, the yachting industry, which consists of only 9,200 yachts, can only be measured by GT (gross tonnage, which is the interior volume). Unfortunately, I couldn't find data on the total GT in the yachting industry - which says something. However, no matter how you slice it, it is tiny compared to commercial shipping. For example, the largest commercial ship, PIONEERING SPIRIT is 403,342 GT. The largest yacht, by volume, is FULK AL SALAMAH, at 20,361 GT. That is a MASSIVE difference in interior volume.

This issue affects the regulations because yachts get thrown into the same category as massive ships and are asked to meet the exact same requirements IF their tonnage requires it. The flag states, in turn, have created yacht codes to help offset this. Okay, so the problem is solved, right?

Wrong.

This creates a perfect storm for yachts because conventions are ratified based on a certain number of flags and a percentage of the world's tonnage. With yachts barely registering in the tonnage department, yacht-heavy flags like the Cayman Islands have very little power in the IMO and ILO to effect change and argue for special considerations for yachts. On the other hand, the Marshall Islands is a top-tier registry and one of the world's largest, giving them a lot of power at the IMO and ILO. In addition, they have a significant number of yachts. The issue for them, however, is a monetary one. Their fee schedule is primarily based on tonnage. So with yachts having such little tonnage, they are a small part of their overall revenue. Therefore, what motivation do they have to sway the IMO and ILO to take heed of yachts?

So, since regulators, and by default regulations, are focused on commercial ships, yachts don't get noticed or have rules made that accommodate them.

This puts the burden of regulating yachts squarely on the shoulders of flags, who do so via yachts codes, marine notices, etc., which are interpretations as opposed to internationally recognized instruments.

There's Blame to go Around

Pointing fingers at the IMO, ILO, and flags is easy. However, there is plenty of blame to go around, and there are fingers pointed in our direction too. We, as an industry and community, need to do better.

First, we must advocate for ourselves and get involved in the working groups at the IMO and ILO. But, unfortunately, we are a small industry comprising many micro-businesses (< 10 employees) and numerous yacht associations and thus have no clear voice. Moreover, with most businesses being so small, most are fiercely territorial as they fight for the business of what, in the scheme of things, is a minimal number of yacht owners. Therefore, it is difficult, at best, for us to come together and advocate for ourselves.

The second issue is professionalism. There are many great and professional yacht captains and crew, and we're fortunate enough to work with many of them. Unfortunately, however, there are also many captains, crew, and owners that refuse to take responsibility for maintaining a safe or well-organized vessel. As a former flag state representative, I can tell you this is one of the most significant concerns flags have with yachts. They are scared of the liability this issue creates for them.

One quick story to illustrate this point. In my days of doing surveys to help yachts achieve charter certification, I had just finished a survey on a small yacht. A few days later, I received a call from the captain informing me that the owner had asked him to return all the safety equipment to get the money back. The captain wanted to know if they would need annual surveys to maintain the certification so he could decide what to do... I wish that was the only story I had of that kind, but it is sadly one of many.

Now this story, and issue in general, doesn't only exist in yachting. However, most yachts are small enough that port state control tends to give them a free pass. Therefore, while commercial ships can only get away with this behavior for a short time, the same isn't valid for yachts, which can stay under the radar more easily.

Most officers in the commercial shipping industry come from maritime schools where they spend four years in school and come out with a bachelor's degree and an unlimited 3rd mate or 3rd engineer license. During their 4-year education at a para-military school, they learn about STCW licensing, MARPOL requirements, and much more, giving them a well-rounded view of the industry. Additionally, they must go on extended sea terms with the school's ship to learn from professional mariners-turned-teachers. They also ship out as cadets on commercial ships before ever stepping onboard as a licensed officer. When they graduate, get their license, and take to the sea as professional mariners, they already have considerable sea time and experience.

In contrast, most yachties start with a Yachtmaster, AEC, or similar non-STCW "license" without much prior experience and get straight to work. While this method is okay, more formal training is needed to increase and maintain the industry's overall professionalism - rather than learning from mistakes on the job.

There is also a stark contrast between yacht owners and commercial ship owners. On the commercial side, ships are owned by professional maritime companies operated and managed by professional mariners. In yachting, on the other hand, owners have purchased a pleasure craft, and they are unaware and likely uninterested in the number of regulations and responsibilities attached to it. Everyone in our industry has stories of an owner asking a captain or crewmember to do something unwise or downright dangerous. I have found this to be especially true of newer owners with smaller yachts who have yet to gain the experience to understand the dangers of the sea. Smaller yachts generally equal less experienced captains and crew who may, for the sake of their job or simply out of ignorance, comply and put everyone in harm's way.

The third issue is an attitude within our industry that exists on two levels. The first is a lack of loyalty towards vendors, flags, etc., based on any perceived slight. Threats to change flag or Class due to almost any inconvenience posed by a surveyor or a requirement is typical. To add insult to industry (yes, you read that right), lawsuits and the threat thereof are typical.

Companies, such as ABS (American Bureau of Shipping) or Lloyd's Register, have tried to get out of yachting entirely or apply significant multipliers in their fee schedules for yachts.

This makes for an interesting problem in itself. Yacht owners, by definition, have a lot of money. That money can be thrown around when in port or with some small suppliers to grease the wheels. However, to larger organizations like Class Societies or larger suppliers that primarily deal with commercial shipping, yachts represent a small part of their overall revenue. The promise of overtime or a bonus to finish early has little effect. So when threats are thrown around, yachts become the thorn they would rather pluck out of their side.

Second, some companies and individuals see owners as money walking on two legs. Sadly, this results in most owners being taken advantage of at one time or another. Unfortunately, this causes some owners to sell their yachts and leave the industry entirely or at least gives them a poor view of vendors, management companies, brokers, etc. This issue certainly helps to keep our Technical team busy.

A Desire to be Regulated?

As I sat at the Mare Forum at FLIBs in October 2022, I was astonished by a conversation about electric and hybrid propulsion. There were many questions about the regulatory status of these "new" systems and what requirements would be put upon designers and builders.

Numerous people were advocating for flags and the IMO to develop more regulations to be able to provide answers to these questions.

Fortunately, the flags in attendance advised against more regulations, at least for now. Instead, they pointed out that the industry needs to be careful what it asks for because it may end up with regulations that are not conducive to reality.

I could not agree more with this. How can an already over-regulated industry want more regulations? The answer is that regulations diffuse responsibility and liability. I can't blame or argue with designers and builders when they live with the constant threat of the owner moving to another firm or filing a lawsuit if things don't go as planned. Regulations help offset the risk of poor design and execution or the unexpected results they may produce. They can point to the rules and say, "That's the problem, not me!".

What Does any of this Matter?

It would take a separate article, or maybe a reality show about the boring parts of yachting, to properly articulate why what I have outlined above is so important.

Come on BRAVO!, I'm ready.

Until my TV debut, here are a few quick issues to illustrate the point:

Commercial ships are commercial ships, so deciding which regulations apply is relatively easy. On the other hand, yachts can be private, private with limited charter, or commercial. A commercially compliant yacht can either operate with a Commercial Certificate of Registry or a Private Certificate of Registry. However, regardless of which Certificate of Registry (CoR) it operates on, it must comply with commercial requirements. This point may get more large yachts coming to the U.S. in trouble than anything else.
Yachts over 24 meters that are commercially compliant need to have a Load Line. But how do we know what 24 meters is? Is it 24 meters LOA (length overall), LWL (length at the waterline), the length defined in the yacht codes for the simplified tonnage measurement, tonnage length, or perhaps is it load line length? The answer is the latter two, which are calculated the same way. Glad we cleared that up; now all we need to do is do the calculation, which is super easy to figure out. It's just based on 96% of the total length on a waterline of a ship at 85% of its least molded depth, measured from the top of the keel, or the length of the fore-side of the stem to the axis of the rudderstock on that waterline, if that's greater. Perfectly clear, eh? Ever wondered why there are so many yachts listed as 23.9 meters?
You need a Garbage Management Plan if you're over 100 GT, but a Garage Record Book if you are certified to carry more than 15 persons. Suppose you are certified to carry 15 or more persons or are over 400 GT. In that case, you need an International Sewage Pollution Prevention Certificate. That's convoluted but not too difficult to understand. But what does certified to carry more than 15 persons mean? Most private yachts don't have a number like this attached to them, depending on the flag. Charter yachts typically get this number from their Form E or Form Y if the flag has such a document. Otherwise, it may be on your charter certification. However, these are not internationally recognized. The Marshall Islands came out with guidance on this around 2011. They stated that this was the number of sleeping berths onboard. Unfortunately, that guidance has left their website. All our charter yachts are now regulated by the number listed on their Form E or Form Y. These list the safety equipment onboard and the number of people they can have onboard during a charter. But private yachts don't get this form...so how do they know if they need it?

I could provide many more examples of this issue. I hope, however, that this is sufficient to illustrate the point. Yachts weren't considered when the IMO and ILO made these regulations. A yacht captain would only know this with formal education or by learning about it during their careers. The owner moving up to a larger yacht doesn't know that they need to find a captain or a management company that does know this stuff.

So, as typically happens, captains are left to try to figure this out for themselves. Suppose they don't know someone, like ourselves, that understands it. In that case, they turn to the yachting community at large, where they get advice as varied as fingerprints.

The Exciting-ish Conclusion

We, as an industry, have been told by the IMO, ILO, and flags to sit at the kid's table while the adults talk. In response, we complain and talk amongst ourselves in a self-perpetuating lazy susan of negativity. We occasionally speak, but mostly whine, to flags, and even throw the occasional temper tantrum if we don't get what we want.

It's time for us as an industry to grow up, mature, and start moving toward the adult table. It won't be overnight, but we can begin by improving the educational system within yachting and banding together to maturely and professionally make an impact at the IMO and ILO. A large part of this is getting out of our little yachting bubble and developing an understanding of how the overall maritime industry works and why it functions the way it does.

I would not expect the USSA, IYBA, PYA, YPY, and many other yachting associations and groups to decide to join forces as one organized unit. Nor should they. However, they can work together to help regulators understand our needs so that we no longer have to sit at the kid's table taking scraps.

We’d love to get your feedback. Leave a comment.

Let’s Stop Sitting at the Kid’s Table