Establishing Links Between Ship Ownership Structures and ... - IMSF
Establishing Links Between Ship Ownership Structures and ... - IMSF
Establishing Links Between Ship Ownership Structures and ... - IMSF
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Establishing</strong> <strong>Links</strong> <strong>Between</strong> <strong>Ship</strong> <strong>Ownership</strong><br />
<strong>Structures</strong> <strong>and</strong> COEB<br />
International Maritime Statistics Forum<br />
London 15 April 2013<br />
Wally M<strong>and</strong>ryk Lloyd’s List Intelligence
Outline<br />
•LLi <strong>Ownership</strong> <strong>Structures</strong><br />
•<strong>Ownership</strong> Definitions<br />
•Sources<br />
•Real Life Examples<br />
•Benchmarking UK <strong>and</strong> German National Fleets<br />
•Issues Arising<br />
lloydslistintelligence.com 2
LLi Vessel <strong>Ownership</strong> Structure<br />
Six Levels Of <strong>Ownership</strong>:<br />
Beneficial Owner<br />
Registered Owner<br />
Technical Manager<br />
Commercial<br />
Operator<br />
Third Party<br />
Operator<br />
Affiliated <strong>Ownership</strong> Entities<br />
ISM Manager<br />
In-House OR Third Party Relationship<br />
Third Party Relationship<br />
lloydslistintelligence.com 3
<strong>Ownership</strong> Definitions<br />
•The Beneficial Owner is deemed to be the ultimate owning entity or representative thereof (either individual, company, group or<br />
organization). The Beneficial Owner may be the vessel's management company or the trading name of a group, both of which are generally<br />
perceived to represent the ultimate owners of the vessel<br />
•The Commercial Operator is responsible for the commercial direction of a ship, including its employment. It may be the principal operating<br />
affiliate of the Beneficial Owner or the same as the Beneficial Owner. An operating company acting on behalf of a group of Registered<br />
Owner’s vessels may be regarded as their Commercial Operator. The Commercial Operator is responsible for ship operations, chartering,<br />
bunkering, port services <strong>and</strong> insurance, <strong>and</strong> may also oversee technical <strong>and</strong> crewing management, although these two functions may be<br />
outsourced<br />
•Registered Owner is the company or individual to whom the ship's legal title of ownership has been registered. This is where 'open registry',<br />
'paper' or 'name-plate' companies are often involved, with ships being registered in a country whose tax on the profits of trading ships is<br />
low/absent or whose requirements concerning manning or maintenance might be more relaxed.<br />
•Third Party Operator is a company which undertakes control, management, operation or agency of a period chartered ship. The Third Party<br />
Operator includes period charterers, pool operators, bareboat charterers, <strong>and</strong> third party commercial managers. They have no known<br />
corporate relationship with the Beneficial Owner. Sometimes, however, pool companies are partly owned <strong>and</strong>/or managed by the beneficial<br />
owner of one or more vessels in their pool<br />
The Technical Manager is the company responsible for the maintenance of the ship <strong>and</strong> the machinery, repairs, stores <strong>and</strong> spares, <strong>and</strong> - in<br />
many instances - crew. The Technical Manager can either be an in-house subsidiary or division of the Beneficial Owner, or a third party entity.<br />
It is often the case that the DOC Company is also the Technical Manager<br />
•ISM Manager is the owner of a ship or any other organisation or person such as the manager, or the bareboat charterer, who has assumed<br />
the responsibility for operation of the ship from the ship-owner <strong>and</strong> who, on assuming such responsibility, has agreed to take over all duties<br />
<strong>and</strong> responsibility imposed by the ISM code. In many cases the ISM Manager will be responsible for the technical management of the ship.<br />
lloydslistintelligence.com 4
Sources<br />
•Flag Administrations<br />
•Class Societies<br />
•P&I Clubs<br />
•MOU’s<br />
•Lloyd’s Agents<br />
•<strong>Ship</strong> Brokers<br />
•LLi Specialist Company Investigators<br />
= 120,000+ Vessels<br />
lloydslistintelligence.com 5
Examples<br />
CMA CGM Erving<br />
Flag<br />
UK<br />
Beneficial Owner Sammy Offer Group Monaco Monaco<br />
Commercial Operator Zodiac Maritime Agencies UK Ltd UK<br />
Registered Owner Moljim <strong>Ship</strong>ping Incorporated British Virgin Isl<strong>and</strong>s<br />
Technical Manager Zodiac Maritime Agencies UK Ltd UK<br />
Third Party Operator CMA CGM SA France<br />
ISM Manager Zodiac Maritime Agencies UK Ltd UK<br />
(80% French/20% Turkish Shareholding)<br />
lloydslistintelligence.com 6
Examples<br />
MSC ACCRA<br />
Flag<br />
Marshall Isl<strong>and</strong>s<br />
Beneficial Owner Dragnis Group via: Greece<br />
Goldenport Holdings Inc<br />
Listed London Stock Exchange UK<br />
Registered<br />
Marshall Isl<strong>and</strong>s<br />
Head Office<br />
Greece<br />
Commercial Operator Goldenport <strong>Ship</strong>management Ltd<br />
Incorporated<br />
Liberia<br />
Head Office<br />
Greece<br />
Registered Owner Ginger Marine Ltd Marshall Isl<strong>and</strong>s<br />
Technical Manager Goldenport <strong>Ship</strong>management Ltd UK<br />
Third Party Operator Mediterranean <strong>Ship</strong>ping Company (MSC) SA Switzerl<strong>and</strong><br />
ISM Manager Goldenport <strong>Ship</strong>management Ltd UK<br />
lloydslistintelligence.com 7
Benchmarking UK & German National Fleets<br />
No<br />
Vessels<br />
% UK<br />
% of Total LLI<br />
UK Fleet<br />
No<br />
Vessels<br />
% German<br />
% of Total LLi Ger<br />
Fleet<br />
Flag 425 48% 64% 418 11% 87%<br />
Commercial Operator 655 74% 41% 3502 94% 87%<br />
Beneficial Owner 342 39% 36% 3426 92% 81%<br />
Registered Owner 484 55% 63% 3167 85% 95%<br />
Flag OR Commercial<br />
Operator OR Beneficial<br />
OR Registered Owner<br />
756 85% 38% 3589 96% 78%<br />
Source:<br />
Fleet Data UK Chamber of <strong>Ship</strong>ping, VDR German <strong>Ship</strong>owners’ Assoc.<br />
Nationality Analysis: LLi<br />
lloydslistintelligence.com 8
Duel Citizenship !<br />
lloydslistintelligence.com 9
Duplication<br />
Vessel<br />
Nedlloyd<br />
America<br />
Jervis Bay<br />
AID sol<br />
Flag<br />
LBR<br />
GBR<br />
ITA<br />
Commercial<br />
Operator<br />
Reederei Blue<br />
Star GmbH<br />
Reederei Blue<br />
Star GmbH<br />
Costa<br />
Crociere S.p.A<br />
Nat<br />
DEU<br />
DEU<br />
ITA<br />
Third Party<br />
Operator<br />
Maersk Line UK<br />
Ltd<br />
Maersk Line UK<br />
Ltd<br />
AIDA Cruises<br />
Limited<br />
Nat<br />
GBR<br />
GBR<br />
DEU<br />
Beneficial<br />
Owner<br />
Ernst<br />
Komrowski<br />
Reederei<br />
Ernst<br />
Komrowski<br />
Reederei<br />
Carnival<br />
Corporation &<br />
plc<br />
Nat Registered Nat<br />
DEU<br />
DEU<br />
USA<br />
America Star<br />
Schiffahrtsges.<br />
mbH &<br />
Company KG<br />
Jervis Star<br />
Schiffahrtsges.<br />
mbH &<br />
Company KG<br />
Costa Crociere<br />
S.p.A.<br />
DEU<br />
DEU<br />
ITA<br />
UK COS<br />
Member<br />
MAERSK LINE<br />
SERVICES<br />
MAERSK LINE<br />
SERVICES<br />
CARNIVAL PLC<br />
lloydslistintelligence.com 10
Issues Arising<br />
•Definition of Economic Benefit<br />
•Are ownership structures a reliable proxy for determining COEB ?<br />
•Duplication – Finding a consistent methodology applicable to vessels<br />
with multiple nationality profiles<br />
•Offshore taxation exemptions (e.g. Greek Law 89/1967, which provides<br />
certain tax <strong>and</strong> other benefits to offshore registered companies that operate<br />
internationally)<br />
• Extent to which shipping financial transactions remain offshore<br />
• COEB a conceptual issue not primarily a data problem<br />
•Solution can <strong>and</strong> should be database independent<br />
lloydslistintelligence.com 11
Disclaimer<br />
Although we use reasonable endeavours to ensure that the information <strong>and</strong> content in the Reports is accurate, we do not<br />
guarantee the accuracy of the information <strong>and</strong> content contained in any Report. No warranty of any type is given by us as to<br />
the accuracy, completeness or timeliness of any information or content provided in any Report. All information <strong>and</strong> content in<br />
any Report is provided on an “as is” basis <strong>and</strong> you assume total responsibility <strong>and</strong> risk for your use of information <strong>and</strong> content<br />
in any Report.<br />
Any projections or predictions provided in a Report are not to be regarded as definitive representations but as estimates<br />
made in good faith.<br />
You acknowledge <strong>and</strong> agree that if <strong>and</strong> to the extent any Report contains or includes opinions, analysis or assessments of any<br />
fact or circumstances by LLG (“Opinions”) such Opinions represent our subjective views based on facts or information<br />
available or in the circumstances known to us at the relevant time, which may not always be correct <strong>and</strong>/or which may<br />
change.<br />
You shall use your own skill <strong>and</strong> judgment <strong>and</strong> shall form your own opinions <strong>and</strong> views regarding the content (including the<br />
Opinions) in any Report <strong>and</strong> will not use or rely upon the same as a substitute for your own assessment, judgment or opinion<br />
or as a means of reaching any decision in the course of your business including (without limitation) any decision regarding (i)<br />
the assessment of risk or creditworthiness; (ii) the pricing of products or services; (iii) taking (or omitting) to take any steps,<br />
actions or measures against third parties; or (iv) the basis upon which you do business with third parties.<br />
We accept no liability for any indirect or consequential loss or damage, or for any loss of data, profit, revenue or business<br />
(whether direct or indirect) in each case, however caused, even if foreseeable.<br />
In circumstances where you suffer loss or damage arising out of or in connection with the use of a Report, we accept no<br />
liability for this loss or damage whether due to inaccuracy, error, omission or any other cause <strong>and</strong> whether on the part of LLG<br />
or our servants, agents or any other person or entity.<br />
lloydslistintelligence.com 12
119 Farringdon Road,<br />
London, EC1R 3DA<br />
UK<br />
+44 (0)20 7017 4815
Change language