The hailing port, it is possible to believe, is solely significant in terms of the actual location of a vessel. And you’d be correct — but you’d be mistaken if you assumed it was just a matter of a vessel’s geographical position. In the United States, experts argue that anything from obtaining a flag of convenience to the hailing port may be considered when determining who owns a vessel. In this article on Hailing Port Case Fundamentals, we’ll look at the variables that decide ownership and how they might conflict with one another.
Purpose of the Vessel
One of the primary considerations in making these choices is the vessel’s intended usage or function. This specific USCG found no indication that the owners planned to permanently shift their homeport rather than continue business and enjoy expenditures until they decide it is no longer necessary or preferable to transfer their home port. In this case, it’s essential to understand who is liable for paying any customs or environmental fees. When it comes to becoming an owner or operator of a seagoing ship, the repercussions of this decision are enormous. You may find yourself paying the bill for the owner of a vessel that you chance to come across while on your cruise!
Length of Time It Has Been In Service
The number of years a vessel has been in operation is a significant factor in deciding who owns it. The hull of a ship is considered private property and is governed by maritime law. It is important to note that it is not subject to maritime law if you have personal property on board. So long as it does so for a reason recognized by maritime law, the USCG has the authority to confiscate certain items of personal property (such as unlawful detention to protect life or the environment).
More often than not, vessels that have been in operation for a long time are classified as government property rather than privately owned and operated. One of the most fundamental aspects of US maritime law that has stayed constant over the last century is its stance on who owns a ship after it has been in service. Under US maritime law, this is one of the simplest things to determine aboard a boat. The jurisdiction in which a vessel is registered is now more critical to boat owners after a recent USCG judgment according to uscgboating.org.
Location Where It Is Docked or Moored
The location of your vessel’s docking or mooring may significantly impact the ownership of your boat. Vessel owners who have their boats parked or moored in other nations are sometimes liable to multiple taxations. When it comes to identifying who owns a vessel, the location is essential. In this instance, a US Coast Guard pursuit ship was sent to Spanish waters to pick up a disruptive passenger.
As part of its ‘Intention to Budge’ proclamation, the United States Coast Guard mandates any ship or aircraft at sea to broadcast its presence to other boats or aircraft in the surrounding seas if they have the intention to budge. Any vessel that does not comply will be subject to penalties, including confiscation of its cargo. Because most ships are compliant and are often dropped off on a straight path back to port, this occurs only in exceptional circumstances.
Financing Arrangements just like Hailing Port
Due to various financing options, there are a wide variety of ship owners. The port of registration may be a consideration in determining ownership under specific contracts; however, this varies by kind. A speculative “ideal” rule would keep the law simple if owners were determined by where their vessel was registered when it was sold or transferred (lessor and lessee exit, etc.). This has been ruled to be illogical and unacceptably presumptuous in the courts.
the ownership determination process has primarily ignored a ship’s flag (the country it flies). Only if two or more parties have adopted joint and several responsibilities for operating or owning a vessel that gives rise to jurisdiction under admiralty law should consideration be given. Perhaps ship-owners who have a preferred ship mortgage or loan from a bank or other financial institution to pay for the purchase but have not yet sold the vessel would want to tighten their financial arrangements.
Keep in mind that the Coast Guard performs its job and makes judgments that affect both seafarers and ship captains alike. Your lawyers should be your first line of defense since they will fight to protect your rights. For yacht owners and managers to understand the implications of these new regulations. If you’re unhappy with the outcome, you may always file an appeal. Don’t hesitate to call us at (800) 340-7580 for help with your appeals campaign.
