TO enhance its competitiveness as a Red Ensign shipping jurisdiction, Bermuda plans to set up a demise-charter register next month, allowing temporary transfer of vessels from one register to another.
Demise (bare boat) charterers generally seek such transfers to take advantage of tax breaks or differing crew nationality requirements offered by other flag jurisdictions.
The Bermuda register is an offshore British registry, established in 1789.
It has lost favour with Hong Kong owners in recent times as it does not have a representative in the territory.
The number of Hong Kong-owned ships on the Bermuda registered increased from one in 1987 to 11 in 1988, but all were re-flagged by 1990.
Ron Bulling, administrator of Bermuda's Registrar of Shipping, said manning requirements, competitive fees and tax advantages are some of the factors charterers consider when selecting a country of registry.