FOR IMMEDIATE RELEASE

(June 13, 2007)

Only a quality flag state administration incorporates the necessary mix of ingredients to be both an effective industry regulator and a superior service provider, according to John Ramage, Managing Director of International Registries (U.K.) Limited, which administers the Marshall Islands Registry. Speaking at the Tradewinds / Mare Forum Oslo Shipping Forum in the Norwegian capital today, Mr. Ramage said, “the old arguments about open registries and national flags should be consigned to the history books. What is important is the distinction between quality flags and substandard flags.”

Highlighting how regulatory enforcement is intrinsic to superior service, Mr. Ramage said, “it is logical to assume that an owner in this day and age only wants to be associated with a flag state that takes its responsibilities seriously, has a very good reputation among the industry players for being a quality flag and is able to provide an appropriate response in a timely manner to the needs of the owner and the industry at large.”

“If a flag is too lenient, maintenance may suffer. Port State Control (PSC) will detain the vessel or an accident may occur,” he reminded delegates, adding that such events caused not only damage to reputations and possible loss of hire, but more seriously, potential loss of life. “A quality flag administration is not just a regulator; it should also encourage owners and operators to wholeheartedly embrace the concept of quality shipping,” he stressed.

“In an ideal world the relationship between the owner and the administration evolves into a partnership where each party has a commitment to operate ships safely and securely, and to protect the environment. As in all partnerships, it is essential that care is taken when choosing a partner: if one of the partners has significantly differing views from the other, the partnership will not endure.”

Mr. Ramage argued that any reputable flag state should place significant emphasis on PSC performance lists. “These ratings are used as a decision-making tool by a number of players in the industry, not only PSC but also, for example, charterers, banks, and owners.”

Mr. Ramage also said that a flag state’s duty extends beyond merely participating in committees and signing conventions. The Marshall Islands maintains a proactive permanent delegation at the IMO.

Developing and ratifying conventions is only one side of the process, however. “With the current regulatory environment, operators require a high level of support from their registry. Flag states have a responsibility to provide advice and guidance to owners in a clear and concise manner on the impact of such regulations,” he said.

According to Mr. Ramage, a flag state’s ability to provide such support relies heavily on its service capabilities, which should be provided not only in all time zones, but also by the right people. “The key to response is not just speed. It is important that it is also appropriate. An appropriate response can only be achieved by employing suitably qualified and experienced personnel. It is the administration’s responsibility to help the vessel operator solve problems, not to create additional ones,” he said.

The Marshall Islands Registry is currently white-listed by the Paris and Tokyo MoUs, as well as the US Coast Guard Qualship 21 program. It is currently the fourth largest maritime registry in the world, with a fleet of 1,466 vessels weighing in at 36 million gross tons.