Report: UK Flag Will Die without Substantial Reforms

The way the UK shipping register is administrated needs urgent reform or the red ensign will die, an industry report has warned.

Namely, an independent panel of shipping industry leaders has written a report at the request of the Maritime and Coastguard Agency calls for a new public corporation to administer the UK ship register and promote the UK as a place to do maritime business around the world.

The report follows data that emerged early in 2015 showing that the number of ships flying the UK flag has fallen by a third in the last 5 years and identifies what needs to change, with a clear message that ‘the status quo is not an option’ if the UK flag is to remain an influential global maritime player.

The report made a number of key points, including the fact that there should also be a review of ownership registration criteria with a view to widening the UK’s potential market without reducing the quality of the offer.

The panel also recommended that a target of 2% of world tonnage (circa 30m GT based on current world fleet growth forecast) to be under the UK Flag by 2020 and that this percentage of world tonnage should at least be maintained thereafter.

Moreover, the panel has concluded that the UK Shipping Register should be established as a separate legal entity, in the form of a public corporation. DfT should commission work immediately to develop the business case in detail for a different UKSR model – focussing on a new GovCo as the preferred option – and, closely involving HMT and other interested Departments.

UK Chamber of Shipping Chief Executive, Guy Platten said:

“The UK is entirely reliant on the shipping industry, but the UK flag will die unless substantial reforms are delivered.  The UK is a world leader in maritime services, and it has the skill and ingenuity to maintain its position for generations to come – but the days of tinkering with the administrative process are gone.  In a fiercely competitive global environment, we now need fundamental change to reverse the decline before it is too late.”

“Numerous shipowners around the world have told me that they will join the UK flag if reforms are delivered.  It shows there is demand and goodwill, and with the right political will we can make the most of the opportunity.”

“Our independent report recommends how to achieve this so that by 2020 the UK Flag is seen globally as the quality flag of choice. But without a sense of urgency we fear continuing decline. Industry stands ready to work with the Department for Transport to make change happen as soon as possible,” added Chief Executive of the Port of London Authority and Chairman of the independent panel, Robin Mortimer.