The Malta Small Commercial Yacht Code (sCYC) 2024 was introduced on April 1, 2024, as a much-needed update to the regulatory framework for commercial yachts under 24 meters. It updates and replaces the applicable requirements for these yachts contained within the Commercial Yacht Code (CYC) of 2020, which covered yachts of all sizes.
Scope of the Code
The commercial yachting industry found the 2020 CYC to be too demanding for smaller yachts. The CYC’s standards were more suited to larger yachts, making compliance unnecessarily complex and costly for vessels under 24 meters.
Following consultation with various industry stakeholders, manufacturers, recognised organisations, appointed government surveyors and yacht management companies and associations, the Merchant Shipping Directorate developed the sCYC as a tailor-made Code dedicated to the regulation of Small Commercial Yachts. As expected, these new rules have been adopted immediately by the industry as they ensured that the new code addresses the specific needs and operational challenges faced by smaller yachts, allowing for smoother compliance without compromising on safety standards.
The sCYC applies to commercial yachts between 12 and just under 24 meters in length that are engaged in commercial operations. It specifically limits the number of passengers to 12, catering to small-scale commercial charters and operations. This means that yachts from 12 meters, which previously fell outside the scope of the CYC, may now also be registered commercially under the Malta flag.
Transition and implementation
The sCYC came into effect on April 1, 2024, and the transition period for yachts previously certified under the 2020 CYC began on June 1, 2024. The transition has been smooth, with many yacht operators already adopting the new regulations seamlessly. Vessels must adhere to the new code upon their first renewal survey after June 1, 2024.
Key points of the sCYC
The sCYC provides a structured set of regulations that safeguard the operational and safety standards of small commercial yachts, promoting high safety levels while allowing flexibility for yacht owners and operators under the Maltese flag. The sCYC regulates the following –
- Design and construction: The code provides detailed technical specifications for the design, construction, and stability of the yachts. It ensures that materials, construction techniques, and equipment meet safety standards.
- Safety and equipment: The code specifies the required safety equipment for firefighting, life-saving appliances, navigation, and communication. Yachts must be equipped with appropriate life rafts, lifejackets, fire extinguishers, and other safety devices.
- Crew requirements: The code outlines minimum qualifications and certifications for crew members. This includes mandatory training and certification to ensure crew competence in operating the yacht safely.
Operational requirements: It defines safe operating procedures, including navigation, passage planning, and emergency preparedness. Specific guidelines on the maximum number of passengers, cargo handling, and stability management are also provided. - Inspection and certification: Yachts must undergo regular inspections by recognized organizations or surveyors to ensure compliance with the sCYC. Certificates of compliance are issued upon satisfactory completion of the inspections.
- Pollution prevention: The sCYC includes provisions on waste management and measures to prevent pollution from oil, sewage, and garbage, in accordance with international maritime conventions like MARPOL.
- International compliance: The sCYC aligns with international conventions such as SOLAS (Safety of Life at Sea), MARPOL (Marine Pollution), and STCW (Standards of Training, Certification, and Watchkeeping for Seafarers), ensuring Malta-flagged yachts meet global standards.
Industry reception and future outlook
The introduction of the sCYC has been widely accepted by the yachting industry, particularly by yacht owners, operators, and charter companies. Many operators have found the code to be more aligned with their operational realities, addressing previous issues that made compliance under the CYC 2020 difficult for smaller yachts. By tailoring the regulations to the specific requirements of small commercial yachts, Malta has reinforced its position as a preferred flag for commercial yacht registration, maintaining its competitive edge in the global maritime sector.
Malta has become one of the largest ship registries in the world, and the introduction of the sCYC has contributed to this growth by offering a clear, structured, and supportive framework for small commercial yachts. The Maltese flag is known for its efficiency and high standards, and this is attractive to yacht owners looking for a reliable jurisdiction.
The focus on safety, crew qualifications, and vessel inspections has helped promote a higher standard of safety in the small yacht segment. This has led to a positive reception in the charter market, as operators can offer their clients vessels with a strong safety record.
Extended range tender guidelines
Alongside the sCYC, Transport Malta also issued the new Commercial Yachts Extended Range Tender Guidelines in April 2024. These guidelines apply to tenders of commercial yachts under 24 meters in length, further streamlining operations for vessels associated with larger yachts. This ensures that not only the yachts but also their tenders comply with Malta’s regulatory standards.
Concluding remarks
Malta’s ability to adapt its regulations, such as with the introduction of the sCYC, demonstrates its commitment to remaining at the forefront of the commercial yacht sector. The industry’s positive reception of the sCYC shows that the new code has effectively addressed many of the operational issues faced by smaller commercial yachts, enhancing Malta’s standing in the yachting industry. The flexibility and practicality of the code have made Malta an attractive option for yacht owners seeking a reliable flag state with a strong regulatory framework.
Matthew Attard is a partner within Ganado Advocates’ shipping and yachting team, with particular focus on the registration and sales/acquisitions of vessels, the formation and support of shipping organisations and companies. Matthew regularly assists clients in corporate matters and M&A transactions as well as major financial institutions and owners in the financing of vessels and related matters.
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mattard@ganado.com
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