Denmark: New Act Strengthens Competitiveness of Shipping Companies and Seafarers

A wide majority in the Danish Parliament has just passed Minister for Economic and Business Affairs Brian Mikkelsen’s bill amending a number of maritime acts.

The new act strengthens the competitiveness of the shipping companies as well as the Danish seafarers’ employment possibilities on the global maritime labour market.

Minister for Economic and Business Affairs Brian Mikkelsen says:

I am extremely satisfied that a wide majority of the parties in the Danish Parliament are behind this growth package for the Blue Denmark. We are extending the Danish position of strength globally by improving the maritime framework conditions for both Danish shipping companies and Danish seafarers, and this means that we can compete with other major maritime nations also in the future. It is also very important to me that the shipping companies continue to choose the Danish flag for the ships. This presupposes that we retain a critical mass of maritime competences and that we improve the Danish seafarers’ possibilities of employment on the global maritime labour market.

The competitiveness of the shipping companies is strengthened because the amendments will provide them with updated framework conditions that better match those of other major, competing maritime nations, such as Singapore. The fact that now the shipping companies will to a higher extent have a possibility of using masters (captains) from other non-EU countries will give them greater flexibility, which is important for their competitive performance worldwide.

The global competitiveness of the seafarers is also strengthened because they are now given a higher tax deduction. This means that now they have a better standing in the wage competition with seafarers from other countries. The deduction is given to seafarers serving on ships above 500 GT, i.e. typically large ships engaged on international voyages. The act also establishes a special pool for improving the seafarers’ social protection.

The amendments will enter into force on 1 July 2011.

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Source: DMA, June 7, 2011.