Unpackaging the new Small Commercial Yacht Code (sCYC) 2024

Transport Malta has launched a new Code for commercial yachts under 24m, which has become effective from the 1st of April 2024. Malta has had a Code regulating yachts since 2005 and this was until now applicable for both larger yachts and yachts under 24m. The Maltese Regulator felt that the sector of yachts under 24m merited its own Code and considerations, and I agree with same given the extent of such yachts being built all across the EU and operated commercially.

In addition, this segment is regulated by the EU Recreational Craft Directive 2013/53/EU as amended (RCD), a Directive which regulates how yachts under 24m are built in the EU, including their safety and security features, and provides a safety net below which yachts built in the EU will not be allowed to navigate and operate. Wisely, Transport Malta has felt that the base of the new Code should be the RCD, and this is reflected in a number of new provisions related to the yacht’s integrity, stability, and safety all of which are linked to a sound build process. I trust therefore the yacht builders and yacht designers will welcome the Code given this standard is adopted by most as a base. 

Upon this premise, in this paper I attempt to provide a short commentary on the new Code and its salient features:

First it must be said that the Code applies to yachts smaller then 24m in length as measured in terms of clause 2 (8) of the 1969 Tonnage Convention (and locally the Tonnage (Amendment) Regulation of 2021). Such yachts must be engaged or intending to engage in commercial operations (so private yachts are excluded for the purview of the Code, although they may voluntarily adopt the standard and ask for a ‘Statement of Compliance’) and should not carry more than 12 passengers. Further, yachts must be larger than 12m in length to qualify (measured in terms of ISO 8666), which is the measurement method adopted by the RCD.

The sCYC tackles generally safety standards both at the time of build and during operation, pollution prevention measures and crew welfare, amongst others. 

Its not the scope of this paper to tackle or delve upon the technical matters and decisions of the regulator in this respect, as this is way beyond my competence. I will leave this task to others who may wish to contribute to this discussion. My target is to report on the provisions adopted and comment on the effect this will have for the owners, their representatives, and operators.

Since as mentioned the RCD served as the base of the Code, from a reading its clear that the regulator adopted this base in respect of yacht's design, stability, structure and integrity, and then focused its attention and introduced provisions to ensure the safety on board in some areas it felt there was need such as fire detection, as well as enhancing safe operations and navigation. For instance, the Code goes into some detail dictating the list of safety, fire fighting and radio equipment, manning scales (generally a captain and an experienced sea person), crew certification, etc... which apply to the various yacht categories. 

I will note however that the infamous B15 requirement for the insulation of the engine room was removed (except for saunas and steam rooms), rendering any conversion of existing yachts built solely to RCD standards a much easier and cost-effective process.

Worthy of a mention, is that different standards apply for yachts wishing to operate the yachts in different areas. Clearly the requirements for coastal navigation (a new limit introduced by this Code and very much welcome) and navigation up to 60nm form safe haven as less stringent than those for yachts intended to cruise across large stretches of water and require an unrestricted range. From experience very few yachts of this size operate or intend to operate, so as to navigate over such long distances with guests on board so generally I trust most yachts will choose to adopt the short-range notation.  

The Code requires adherence to Maritime Labour Convention (MLC) rules in relation to crew spaces, though it recognizes that equivalent arrangements may be proposed as solutions. MLC is applicable to all yachts operated commercially and operators also need to consider its provisions once they start their activities. In addition, crew certification needed are clarified so that anyone holding STCW certificates, and certificates issued by Malta, MCA/RYA, Italy, Croatia, and some other jurisdictions will be accepted when presented for approval and endorsement. 

A key safety feature, sometimes overlooked, is the radio equipment and ability to communicate when problems arise. Having working, programmed radio equipment is key to ensure safe navigation and the Code lists what is needed to go sea in case of each of the navigation notations, whilst all equipment is requested to be in line with the Marine Equipment Directive. For yachts over 150GT, BNWAS is required.

Yachts need to be properly insured and have to ensure must have anti-fouling applied.

The Code interestingly also provides a note confirming Transport Malta will accept engines not operating with diesel, paving the way for the introduction of new fuels being discussed in the industry. This approach is very much welcomed given the ongoing discussion in the industry about such new fuels, whilst its clear that no one alternative fuel will monopolize the industry going forward, the position adopted allows the Flag to consider any proposition adequately supported.

Other useful provisions already in the SYC have been retained in the Code such as the ability to carry out fast and efficient switches from a private to a commercial status (though VAT considerations apply here so always consider same with caution and take proper expert advise), to apply for static charters, the ability to request suspension of the Code for races, and special considerations for historic yachts. 

A final word of caution to all operators, also highlighted in the Code, is that any yacht operating in jurisdictions other then Malta, must always respect local rules which may have other operational requirements in terms of licensing, crew certification, safety equipment, etc. Check these rules in advance to avoid nasty and possibly expensive surprises. 

In conclusion a few takeaways: 

I am sure builders of yachts under 24m will welcome the SCYC and likewise am sure this Code will lead to a lot more interest for new yacht and existing yachts to move into and join the charter market.

The Code adequately addresses the safety and security issues to be expected of a leading regulator in the EU and the yachting industry and has also provided for the operational needs of the industry. The Flag listened to the stakeholders and came up with produced a workable set of rules. 

Any owner, designer or project manager intending to operate his/her yacht commercially in the Med and beyond must have a look and adopt the Malta flag and the new sCYC. 

In my opinion, it’s important to get a good surveyor involved early in any project. He/she must be Malta approved or a Class Surveyor, and moreover one knowledgeable of the Code, who can advise what to do and not to do, what can be done and what cannot be done. 

Of course, getting someone to oversee the project, and moreover add value in terms of the corporate set up, VAT, crewing and operations is also important, so please do not hesitate to contact us for advice and guidance!