The Marshall Islands Ship Register has accused close rival Liberia of charging classification societies a surcharge for issuing statutory certificates and class documents, ramping up costs for shipowners in the process.
The Marshall Islands said that until now the practice had only been adopted by Panama, Belize and Honduras. But added that, according to classification sources, Liberia had joined the additional fee system.
In May last year, Liberia took on Panama's Alfonso Castillero as its chief commercial officer.
Controversial fees
The class fees are controversial because the Marshall Islands believes it allows such flags to attract tonnage by offering low cost — or in some cases free — introductory ship registration that is subsidised by the certification charges, which in many cases are passed onto owners.
The spat has added spice because the Marshall Islands is calling out Liberia over the fees as the two battle it out for the position of number two flag state in the world. The Marshall Islands is ahead with 152 million gt on its books compared with Liberia’s 150 million gt.
The Marshall Islands pledged not follow Liberia in adding the charges.
In a statement, the Marshall Islands said: “We are determined to remain transparent. Owners can rest assured they will only be responsible for agreed and published fees with no back door or hidden fees.”
However, Liberian Registry chief executive Scott Bergeron reacted strongly to the allegations, claiming that such criticism “downgraded” the image of the ship registration business.
Bergeron said the issue is not as clear cut as the Marshall Islands is suggesting.
Digitalisation of the certification business meant that is now “incumbent on leading flag administrations to increase their capacity and capability and not cede these elements completely to classification societies”, he said.
Data exchange
Liberia is moving toward complete paperless certification, according to Bergeron, and developing a real-time platform for access to data on certification.
He said the new charge, known as the data exchange fee, reflected this development.
“Liberia is committed to ensuring that its ship registry remains highly efficient, user-friendly, and fit for purpose in the 21st century.
"The introduction of the data exchange fee reflects changes to the way in which ship registration is conducted and is therefore designed to enable shipowners and operators to keep their vessels moving efficiently, safely and on time in today’s highly competitive industry.
“Moreover, the real-time data platform will strengthen the registry’s ability to rapidly intervene on behalf of shipowners at major port states with its global network of professionals,” he added.
Taking a swipe at the Marshall Islands, Bergeron also pointed out other areas where Liberia is saving costs for owners.
“Unlike the Marshall Islands, the Liberian Registry has leveraged the country’s extensive diplomatic channels to deliver preferential fees in major port countries such as China, a significant value enhancement for shipowners seeking competitive charter hires,” Bergeron said.
