OGSR Presents on Key Yacht Flags at Cayman Forum

The Cayman Yacht Forum took place in Fort Lauderdale, FL yesterday featuring speakers representing Alley, Maass, Rogers & Lindsay; Maples and Calder, and our Official Guide to Ship & Yacht Registries.

Campbell Houston spoke on behalf of the OGSR in a presentation titled, "Review of Key Yacht Flags," among them, Antigua and Barbuda, Bahamas, Cayman Islands, Malta and the Marshall Islands.

Campbell's presentation, available at the link above, addressed US cruising permits, survey and construction codes and charter options. Excerpts from his speech are as follows:

Most registries will register a yacht, but they may not be actively participating in yacht registration or have the same experience or dedication level of other registries.

Some registries offer a private charter registration; these allow a yacht, which is really meant for personal use, to have the occasional charter, recouping some costs of ownership, without having to take on a commercial registration.

The cost of registration and other fees typically depend on the size and use of the vessel and vary between flags, though these fees of a few hundred dollars per year may not make much difference to cost of operating a 100 meter mega yacht.

Insurance rates can be reduced just by registering with a quality flag. Insurers benefit from knowing that the flag will hold the safety of the vessel and crew to a higher standard.

The UK’s Maritime & Coast Guard Agency (MCA) has a set of yacht construction and survey codes that are widely used within the commonwealth. Other nations have adopted the MCA codes as well or devised their own codes. These codes regulate the construction, required equipment, manning, etc. and obviously affect the safety of the vessel but also the cost. For the quality flags these codes are comparable.

Many flags follow the STCW of 1995, Seafarers Training, Certification, and Watchkeeping, but there is some variation in which nations’ certifications they endorse; also there is newly enacted MLC, Maritime Labor Convention, which affects any yacht over 500 gt engaged in trade.

Customer service, 24/7 availability, quick turnarounds on documentation and crew endorsements,  as well as the availability of surveyors and technical assistance, and access to an extensive network of consulates of a developed nation should protection be needed are the sorts of perks that come with a quality flag and can make your life easier or your business run smoother.

For a flag to offer excellent customer service while being firm in maintaining high standards is truly a challenge, and one that very few can achieve.

This list is by no means exhaustive. There are many factors which will determine which flag will be a best fit for your yacht. The flag you choose has tremendous implications in the use and running cost of your yacht. Think about how and where your yacht will be used: in the US, EU; for pleasure, for charter, and your expectations from the registry. My advice is to use a lawyer and go sailing.