THE last quarter has seen a continuation of the high level of activity in terms of ship registry transactions (re-mortgaging, de-registrations, registrations, name changes, and registry transfers) enjoyed throughout 2009 when 10% tonnage was added.
This reflects a continuing level of shipping business through the local maritime sector. During this final quarter a total of 21 vessels have been added to the register, of which 11 were merchant ships, six commercial yachts, and four pleasure yachts.
To service these additions four new ownership companies have been set up in the Isle of Man, 35 mortgages have been arranged through Isle of Man advocates (at least two of which have been entirely financed locally) and 17 vessels have contracted Representative Persons on the Isle of Man. In addition, a number of established local Corporate Service Providers have added yacht management to their services.
A survey of the local maritime sector taken to reflect the status at January 1st 2010 has revealed that job losses in the shipping sector were more than offset by growth in the yacht sector (see table below). The net result is an increase in employment overall in what has been a very difficult year in the maritime world.
The survey responses also predict a small growth in numbers over the next year.
Outlook
Merchant shipping is still experiencing some very difficult times, particularly in the transport of finished goods (container and car carrier trades). Predictions for the next few years are difficult as the once predicted over-supply of ships is dependent upon whether or not the cancellation of orders from shipyards occurs and this is indeterminate.
The Isle of Man register’s new fee structure is attracting the attention of some of the larger corporations involved in wet cargo (oil and gas) and dry bulk trades where the cost savings over the competitor flags are significant for larger vessels. We can therefore expect the register to continue to grow and the amount of business through Isle of Man support services to increase accordingly.
Yacht management on the Isle of Man and its attractions are still largely dependent upon cost effective options regarding VAT being available but indications are that providing this is maintained the sector will continue to grow.
