Merchant Shipping Ordinance

1952
By
Oladokun Sulaiman
 IMPORTANCE OF SHIPPING
• Transports 95% of Malaysia’s trade.
• Most cost effective means to ship world trade.
• Spurs the growth of various maritime ancillary services.
• Yardstick for maritime and trade competitiveness of a nation.
• Linkages with many economic activities, services and
industries.
 MALAYSIA’S SHIPPING SECTOR

• Demand for shipping services is a function of demand for

trade.
• Crucial to economic prosperity.
• Govt. active in promoting shipping i.e. via fiscal incentives,
Cabotage Policy,
• legal & institutional framework
 MALAYSIA’S GLOBAL RANKING

• 21st in terms of DWT contribution to total global merchant

fleet (1.06% of world total as of 1/1/2006). (UNCTAD)
• 325 ships over 1,000 GRT and above @ 1/1/2006. 75% are
nationallyflagged. Capacity : 9.6 mil. DWT. (UNCTAD)
• MISC is world’s largest owner / operator of LNG tankers (26
tankers @ 1/1/2008). (www.misc.com.my)
 AGENCY INVOLVED
• AGENCIES INVOLVED
• Maritime Division, MOT
• Domestic Shipping Licensing Board, MOT
• Marine Department
• Akademi Laut Malaysia
• M’sian Maritime Enforcement Agency
• Malaysian Shipowners Association
• Malaysian Shipping Agents Association
• International Shipowners Association
 SHIPPING LAWS
• Merchant Shipping Ordinance 1952
• Boat Rules 1953
• Merchant Shipping Act (Oil Pollution) 1994
• Merchant Shipping Examinations
• - oil spill response
• - Cert. of Competency (deck and marine Engineer Officers)
Rules 1998
• Merchant Shipping Order (Collision Regulations) 1984
 MSO PARTS: I-XV
MSO comes with the following parts:
II. Registry
III.A. Domestic shipping
licensing board
B. Masters & seamen
III. Passenger ships
IV. Safety
V. Pollution from ships
VI. Load line and loading
VII. Special shipping enquires
and court
XIII. Delivery of goods
IX . Liability of ship-owners
X. Wreck &salvage
XI. Lighthouse and Pilot age
XII. Ports
XIII. port officer
XIV. Legal proceeding
XV. supplemental
 Introduction
Section under introduction are:
Section 1- Short title
Section 2 - Interpretation
Section 3 - Application of ordinance to ships propelled by
electricity, etc.
Section 4 - Exemption of Her majesty ships& ships belonging to
ruler
Section 5 - Minister may declare port etc
Section 6 - Particular in declaration to be published
Section 7 - Director of marine port office &port officer
Section 8 - Appointment of health officer
Section 9 - Appointment of surveyors of ships & radio surveyor
 Part IIB - Engagement of Seamen
Section under part IIB are:
Section 98. Agreement with crew
Section 99. Form period and condition of agreement with crew
Section 100. Special provision as to agreement with crew of
foreign – going ships
Section 102. Changes in crew of foreign going ships to be
reported
Section 103. Certificate as to agreement with crew of foreign
going ships to be reported
Section 104. Copy of agreement to be made accessible to the
crew
Section 105. Forgery etc of agreement with crew
Section 106. Seamen not to be bound to produce agreement
107. Alteration of agreement
 Discharge of Seamen
Section 113. Discharge before port officer
Section 114. Certificate of discharge and return of certificate to
officer on discharge
Section 115. Report of seamen`s character
Section 116. False or forged certificate of discharge or report of
character
Section 117. Sanction required for discharge of seaman in the
federation
Section 117.(3). Certificate required when seamen is left behind
in the federation
Section 117(\4) Forcing seamen ashore
Section 117(7) Seaman remain behind
 Pollution from Ships
Section 306 B. Application
Section 306 3C. Definition
Section 306D Power of director of marine
Section 306 E. Service of notice
Section 306 F. Offence
Section 306 G. Power of director of marine in cases of non-
compliance with notice
Section 306 H. Escape of oil or harmful substance from two or more
ships
Section 306 I. Action to be taken in cases of maritime casualty
Section 306 J. . Report of maritime casualty
K. Power of minister
 DOMESTIC SHIPPING
• Shipping of local cargo b/w local ports.
• Approx. 300 companies operating
• 3,500 ships totaling 9 mil. GRT.
• Licensing of players regulated by DSLB.
• Benefits from Cabotage Policy implemented in 1980 via MSO 1952.
• Foreign lines can engage in domestic shipping on case-by-case basis.
• Local players operate / own single vessel of avg. size of 500 GRT.
• Mostly transport general / break bulk cargo
• Cabotage Policy relaxed on certain routes to promote P. Klang as
National Load Center and to promote transshipment.
• Incentives : Shipping Fund, tax breaks, import duty exemption of
ships 4,000GRT
 Licensing
• Unconditional : issued only to Malaysian registered vessels for
maximum 2 years.
• Conditional : issued to Malaysian registered vessels for a
period of 6 months.
• Temporary : issued to both local and foreign vessels for
maximum 3 months, also to M’sian cos. operating foreign
flagged vessels due to the unavailability of suitable Malaysian
flagged vessels.
 TO OWN A MALAYSIAN SHIP…

• Owner must be a Malaysian citizen(s) or corporation which

must satisfy the following requirements :
• the corporation is incorporated in Malaysia;
• The principal office of the corporation is in Malaysia;
• the management of the corporation is carried out mainly in
Malaysia;
• the majority of the directors of the corporation are Malaysian
citizens.
 GLOBAL SHIPPING TREND

• Increasingly bigger and more sophisticated

ships
• Increased containerization
• Focus on calling at ‘megahub’ ports
• Mergers & acquisition
• Shipping companies buying into ports &
logistics companies.
• More focus on environmental protection
 CHALLENGES FOR MSO
• Emphasis on economies of scale
• Adapting to bigger cargo volumes
• Overcapacity in tonnage
• Faster turnaround time
• Shortage of qualified seafarers
• Rising vessel and operation costs
• Reliance on foreign ships
• Complying with IMO regulations
• Integrate with other transport modes.
• Adopt to ports’ ‘hub and spokes’ system.
• Attract more main line operators to call at Malaysian ports.
• Provide adequate logistics and support services.
• Provide competitive financing.