Act No. I of 2025 introduces a comprehensive set of changes to the Merchant Shipping Act aimed at modernizing Malta’s shipping regulations. These amendments align national laws with international maritime standards, streamline administrative procedures, and enhance legal protections for shipowners and seafarers. These amendments will come into effect within two months from the date of their publication in the Government Gazette. Below is an overview of the key changes:
- Strengthening Administrative Frameworks
The amendment act strengthens a number of administrative frameworks already in place. It introduces a legal definition for the term “bareboat charterers”, clarifying their rights and responsibilities. Additionally, the administrative authority over ship registration has shifted from the Minister to the Registrar-General, allowing for a more efficient approach to maritime governance. Digitalization is also embraced whereby registered post will be replaced with electronic communication for official notices, expediting processes which will reduce paperwork.
- Revised Ship Registration and Ownership Rules
The maximum permissible age for a ship registration has been reduced from 25 years to 20 years, to ensure a more modern fleet. Furthermore, owners must now officially number and mark the ships at earlier stages of construction. Having said this, provisional registration periods can be extended, provided that there is valid existence of ongoing work on the ship.
- Financial and Mortgage-Related Changes
The Scope of a Ship Mortgage has been expanded in the Act, and can now be used to secure future obligations, offering greater financial flexibility. Moreover, a new category of registered financial security, the finance charter instrument, allows for mortgages on ships under construction or already operational, benefiting investors and financiers. Mortgages can now also be corrected within seven days of registration, improving administrative accuracy.
- Seafarer Rights and Employment Protections
The Maritime Labour Convention, 2006 has been adopted in the Act, replacing outdated ILO regulations on accommodation and working conditions, and in the case of a judicial sale, seafarers’ wages will continue accruing until the ship is sold, safeguarding their financial rights. The Act further outlines that the Maltese Seaman’s Card, previously issued by the Minister, will now be managed by the Registrar-General and that fraudulent use or alteration of a certificate of discharge now carries a penalty of up to two years’ imprisonment or a fine.
- Safety, Environment, and Compliance with International Conventions
The amendments bring Maltese shipping laws in line with international maritime agreements, including The Cape Town Agreement (2012) on fishing vessel safety, The United Nations Convention on Judicial Sales of Ships, Intervention Protocols (1969, 1973) for marine pollution control. Additionally, all draught markings on ships must now comply with the Load Line Convention.
- Legal and Procedural Enhancements
Judges can now appoint a ship master with the new amendments, but only with the consent of the owner or bareboat charterer if they are present in Malta. Furthermore, legal liabilities for marine accidents have been expanded to include charterers alongside shipowners.
It can be said that this Amendment Act represents a significant step forward in enhancing Malta’s maritime legislation. By incorporating digital solutions, reinforcing financial security, ensuring compliance with international laws, and safeguarding seafarer’s rights, these amendments create a more robust and modern shipping industry. They will likely have a lasting impact on shipowners, financiers, and seafarers, ensuring that Malta’s shipping sector remains competitive and compliant.
Av. Jodie Darmanin
Associate
Mifsud & Mifsud Advocates
For more information you can contact one of our Team Members at Mifsud & Mifsud Advocates.
