(CMR) As of 11 March 2024, the Cayman Islands Shipping Registry (CISR) requires all Cayman-flagged vessels, including private yachts, to have written contracts for all crewmembers on board. This is a first in the yachting industry and is expected to provide better protection for crewmembers.
Under section 90 of the recently amended Merchant Shipping Act 2024, the contracts must outline wage expectations, wage deductions permitted by MSA 2024, entitled repatriation and medical expense terms, leave, notice periods, and the governing law.
The CISR guidance note states, “No right or obligation under MSA 2024 can be renounced by an employment agreement.”
CISR will be checking Cayman-registered vessels for compliance, with those failing to uphold those terms could be subject to penalties, as stated in the Merchant Shipping Act:
“If a ship goes to sea or attempts to go to sea in contravention of the requirements of this section, the master and the shipowner commit an offense and are liable on summary conviction to a fine of twenty thousand dollars.”
According to The Triton, the Professional Yachting Association (PYA) supports the move.
“This is a first in the yachting industry, and the PYA applauds the CISR for taking this initiative to ensure better crew protection. We believe this will set a positive precedent and encourage other flag states to follow suit,” it stated.
The PYA also shared that many crew on smaller vessels lack proper employment contracts or have none.
“This new regulation aims to address this gap and provides essential safeguards for crewmembers. This helps to ensure fair treatment and a more professional work environment for all,” the PYA stated.
The Cayman Islands is recognized among the best-performing Flag States
The Cayman Islands is one of 14 flag States to perform positively against all criteria in the recent Flag State Performance Table Report published by the International Chamber of Shipping (ICS). Flag States are countries where a company registers its commercial and merchant ships.
For the ICS report, which covers 2023/2024, 117 flag States were evaluated. The report encourages shipowners and operators to maintain an open dialogue with their flag administrators about improving the safety and security of life at sea, protecting the marine environment, and providing decent working conditions for seafarers.
Deputy Premier and Minister for Financial Services and Commerce, Hon. André Ebanks, commended the Cayman Islands Shipping Registry, which is the administrator of the Cayman Islands’ maritime sector, for the performance. The Cayman Islands Shipping Registry is a division of the Maritime Authority of the Cayman Islands.
Ebanks said, “Government is proud of the significant milestones our impressive maritime sector continues to achieve. That said, we will not rest on our laurels.”
“The Ministry continues to support the sector and, importantly, the Maritime Authority to meet international standards and maintain our global position as an excellent flag State, as underscored by the passing of the Merchant Shipping Bill 2023. This critical piece of modernized maritime legislation became an Act following its passage in Parliament on 27 February 2024,” the deputy premier stated.
Cayman Islands Shipping Registry CEO Joel Walton expressed gratitude for ICS's recognition and for the contribution of the Registry’s stakeholders.
“Our focus will always be on the quality of the flag and our clients’ needs. We are pleased to be acknowledged, for the 14th consecutive year, by the ICS as one of the world's leading flags. Continuing to hold this status demonstrates the Cayman Islands’ dedication to quality shipping,” Walton continued.
“It is a testament to the hardworking Registry team, shipowners, and managers for their continued outstanding efforts to set the pace for quality service, through innovative leadership,” he stated.
Benefits of the Cayman Islands as a flag state can include reduced inspection time for vessels entering foreign ports; safe work environments for the crew; and facilitation of UK Royal Navy Protection in conflict areas. These important benchmarks for the international shipping industry serve to encourage vessel owners and operators to examine the substance of a flag before registering their vessel.
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