Maritime law in Malta

In my experience, people in search of a jurisdiction - either for registering vessels, or for investment purposes, or as a choice of forum for the resolution of disputes - fall roughly into two categories. They have either tried, tested and worked with Malta for so long that it has practically become their second home, or alternatively they do not know Malta at all. As far as the latter category is concerned, a matter of paramount importance in their list of priorities is the legal system and the people of the country.

Until independence in 1964, Malta had been occupied by the key players in Mediterranean politics - the Phoenicians, the Carthaginians, the Romans, the King of the two Sicilies (Spain and Italy), the Normans, the Arabs, the Knights of St John, the French and the British. They all occupied Malta for periods long enough to influence our lives, traditions, language and laws. As a result, the Maltese are cosmopolitan, dealing with people from across the globe on a daily basis in the developing service sectors of industry, banking, shipping and financial services among others.

The laws of Malta today are also a mixture of codified laws based on the Roman Law model akin to the systems prevalent in continental Europe, with numerous statutes on specified subjects. It is the more modern laws, particularly in fields of banking, shipping, tax planning and company law, that are heavily influenced by English law.

The registration of vessels under the Malta flag is regulated by the Merchant Shipping Act of 1973. This Act received a very thorough makeover in the 1980s and is again in the throes of major amendment at the moment. This is the result of some three years of work and effort by numerous persons and organisations active in the field. An important matter being dealt with by the amendments is shipmanagement.

In the realm of ship arrest, Malta is not a signatory to the 1952 convention, and the grounds upon which one can arrest a vessel are tied up with the grounds upon which our courts may exercise in rem jurisdiction against a vessel. These grounds are still governed by 1840 and 1860 Victorian legislation, and therefore very limited and limiting. Having said this, the Maltese governmental delegation at the diplomatic conference on arrest of ships in 1999 participated fully in the drafting of the convention, and it is hoped that Malta can catch up on some 150 years very quickly by the adoption of this convention.

As far as the carriage of goods by sea is concerned, Malta is a Hague Rules country. This is not because it acceded to the rules directly, but via the English Carriage of Goods By Sea Act which was passed by the British parliament in 1954 when Malta was still a colony, resulting in that act becoming law in Malta.

This is not the only international convention which became law in Malta in this manner. A similar example is the Limitation of Liability Convention 1957, the wording of which is found in Malta's Merchant Shipping Act 1973.

In the traditional admiralty disciplines, Malta has adhered to the Collision Regulations, whilst the local harbour tug company, Tug Malta, operates on the basis of the UK Standard Towage Conditions. Malta's salvage rules are based on the 1911 convention, although the amendments to the Merchant Shipping Act, mentioned above, envisage the incorporation of the 1989 Convention.

This legal foundation, together with several other contributory factors, has assisted in attracting the shipping and banking industry to Malta and the services it offers. For many hundreds of years, the sea, ships, trade and shipping have been a focal point in the lives of many Maltese. Malta has come far from the days of being a Phoenician trading post in the middle of the Mediterranean. However, today, in the year 2000, Malta is still doing what it does best - offering a service to the international shipping community.