Merchant Shipping Ordinance 1952

By

Oladokun Sulaiman

IMPORTANCE OF SHIPPING

• Transports 95% of Malaysia’s trade.

• Most cost effective means to ship world trade.

• Spurs the growth of various maritime ancillary services.

• Yardstick for maritime and trade competitiveness of a nation.

• Linkages with many economic activities, services and

industries.

MALAYSIA’S SHIPPING SECTOR

• Demand for shipping services is a function of demand for trade.

• Crucial to economic prosperity.

• Govt. active in promoting shipping i.e. via fiscal incentives, Cabotage Policy,

• legal & institutional framework

MALAYSIA’S GLOBAL RANKING

• 21st in terms of DWT contribution to total global merchant fleet (1.06% of world total as of 1/1/2006). (UNCTAD)

• 325 ships over 1,000 GRT and above @ 1/1/2006. 75% are nationallyflagged. Capacity : 9.6 mil. DWT. (UNCTAD)

• MISC is world’s largest owner / operator of LNG tankers (26 tankers @ 1/1/2008). (www.misc.com.my)

AGENCY INVOLVED

• AGENCIES INVOLVED

• Maritime Division, MOT

• Domestic Shipping Licensing Board, MOT

• Marine Department

• Akademi Laut Malaysia

• M’sian Maritime Enforcement Agency

• Malaysian Shipowners Association

• Malaysian Shipping Agents Association

• International Shipowners Association

SHIPPING LAWS

• Merchant Shipping Ordinance 1952

• Boat Rules 1953

• Merchant Shipping Act (Oil Pollution) 1994

• Merchant Shipping Examinations

• - oil spill response

• - Cert. of Competency (deck and marine Engineer Officers) Rules 1998

• Merchant Shipping Order (Collision Regulations) 1984

MSO PARTS: I-XV

I. Registry

II. A. Domestic shipping licensing board

B. Masters & seamen

III. Passenger ships

IV. Safety

V. Pollution from ships

VI. Load line and loading

VII. Special shipping enquires and court

XIII. Delivery of goods

IX . Liability of ship-owners

X. Wreck &salvage

XI. Lighthouse and Pilot age

XII. Ports

XIII. port officer

XIV. Legal proceeding

XV. supplemental

MSO comes with the following parts:

IntroductionSection under introduction are:

Section 1- Short title

Section 2 - Interpretation

Section 3 - Application of ordinance to ships propelled by electricity, etc.

Section 4 - Exemption of Her majesty ships& ships belonging to ruler

Section 5 - Minister may declare port etc

Section 6 - Particular in declaration to be published

Section 7 - Director of marine port office &port officer

Section 8 - Appointment of health officer

Section 9 - Appointment of surveyors of ships & radio surveyor

Part IIB - Engagement of SeamenSection under part IIB are:

Section 98. Agreement with crew

Section 99. Form period and condition of agreement with crew

Section 100. Special provision as to agreement with crew of foreign – going ships

Section 102. Changes in crew of foreign going ships to be reported

Section 103. Certificate as to agreement with crew of foreign going ships to be reported

Section 104. Copy of agreement to be made accessible to the crew

Section 105. Forgery etc of agreement with crew

Section 106. Seamen not to be bound to produce agreement

107. Alteration of agreement

108. Seamen not be bound to produce agreement

Discharge of Seamen

Section 113. Discharge before port officer

Section 114. Certificate of discharge and return of certificate to officer on discharge

Section 115. Report of seamen`s character

Section 116. False or forged certificate of discharge or report of character

Section 117. Sanction required for discharge of seaman in the federation

Section 117.(3). Certificate required when seamen is left behind in the federation

Section 117(\4) Forcing seamen ashore

Section 117(7) Seaman remain behind

Pollution from Ships

Section 306 B. Application

Section 306 3C. Definition

Section 306D Power of director of marine

Section 306 E. Service of notice

Section 306 F. Offence

Section 306 G. Power of director of marine in cases of non- compliance with notice

Section 306 H. Escape of oil or harmful substance from two or more ships

Section 306 I. Action to be taken in cases of maritime casualty

Section 306 J. . Report of maritime casualty

K. Power of minister

DOMESTIC SHIPPING• Shipping of local cargo b/w local ports.

• Approx. 300 companies operating

• 3,500 ships totaling 9 mil. GRT.

• Licensing of players regulated by DSLB.

• Benefits from Cabotage Policy implemented in 1980 via MSO 1952.

• Foreign lines can engage in domestic shipping on case-by-case basis.

• Local players operate / own single vessel of avg. size of 500 GRT.

• Mostly transport general / break bulk cargo

• Cabotage Policy relaxed on certain routes to promote P. Klang as National Load Center and to promote transshipment.

• Incentives : Shipping Fund, tax breaks, import duty exemption of ships 4,000GRT

Licensing

• Unconditional : issued only to Malaysian registered vessels for maximum 2 years.

• Conditional : issued to Malaysian registered vessels for a period of 6 months.

• Temporary : issued to both local and foreign vessels for maximum 3 months, also to M’sian cos. operating foreign flagged vessels due to the unavailability of suitable Malaysian flagged vessels.

TO OWN A MALAYSIAN SHIP…

• Owner must be a Malaysian citizen(s) or corporation which must satisfy the following requirements :

• the corporation is incorporated in Malaysia;

• The principal office of the corporation is in Malaysia;

• the management of the corporation is carried out mainly in Malaysia;

• the majority of the directors of the corporation are Malaysian citizens.

GLOBAL SHIPPING TREND

• Increasingly bigger and more sophisticated ships

• Increased containerization

• Focus on calling at ‘megahub’ ports

• Mergers & acquisition

• Shipping companies buying into ports & logistics companies.

• More focus on environmental protection

CHALLENGES FOR MSO• Emphasis on economies of scale

• Adapting to bigger cargo volumes

• Overcapacity in tonnage

• Faster turnaround time

• Shortage of qualified seafarers

• Rising vessel and operation costs

• Reliance on foreign ships

• Complying with IMO regulations

• Integrate with other transport modes.

• Adopt to ports’ ‘hub and spokes’ system.

• Attract more main line operators to call at Malaysian ports.

• Provide adequate logistics and support services.

• Provide competitive financing.