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The Danish government proposes to abolish the registration fee on merchant ships. Danish Shipping points out that a serious obstacle to the growth of vessels flying the Danish flag will hereby be removed.

The government's new measures for business and industry to prolong the growth of the Danish economy also contain maritime proposals. This applies, for example, to the abolition of the special fee on second-hand ships, which are registered in the Danish International Ship Register (DIS). It will remove a cost which today makes it less attractive for shipping companies to register newly purchased second-hand ships under Danish flag.

Anne H. Steffensen, CEO of Danish Shipping, welcomes the government's removal of the costly fee.

"We know from talks with Danish and foreign shipping companies that the registration fee is an obstacle when they wish to register under Danish flag. Therefore, I am pleased that the fee will be removed as this will make Denmark a more attractive market. It is a good day for the Danish maritime cluster, and it sends a strong signal that Denmark will be a global maritime power house," she says.

An investment in the future
When registering a ship in Denmark, a one-time fee of one per thousandth of the value of a ship is charged, as well as a fee for registration of a mortgage, which also represents one per thousandth of the value of the deposit. This applies when a second-hand ship is registered in the Danish International Ship Register, whereas in many competing countries a far lower charge is paid. The difference can slow the growth of new ships under Danish flag.

In his presentation, Brian Mikkelsen, Minister for Industry, Business and Financial Affairs, emphasized that the proposal is an investment in the future.

"The Danish maritime cluster is growing, so it is also an investment in the future as we can help attract activities to the country," said Brian Mikkelsen in connection with the presentation of the measures.

Purchase and sale of ships is an integral part of modern shipping, and the shipping companies typically only own ships for a limited number of years before replacing them by newer ships.

"Today, it can be three to four times more expensive to register a ship in Denmark than in e.g. Singapore. The better the conditions offered by Denmark, the higher the probability that more ships will fly the Danish flag. I see it as an important matter for the entire shipping industry," concludes Jan Rindbo, CEO of the shipping company NORDEN.

Source:   danishshipping.dk