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June 2012 Edition

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Deilmann’s switch to the Malta flag meets with protests  
Neustadt-based Reederei Peter Deilmann has ended weeks of speculation by confirming plans to cease German registry of Deutschland and switch to Maltese flag.

The exact timing of the intended registry switch has not been confirmed, but Seatrade Insider understands it might take place in July, prior to Deutschland’s deployment in London for the Olympic Games. As earlier reported Deilmann, a co-sponsor of the German Olympic team, will base the ship in London for 20 days during the Games.

A spokeswoman of Deilmann said the registry switch was an ‘entrepreneurial decision’ aimed at making the company more competitive. She stressed the character of Deutschland will remain unchanged, adding that savings achieved by the registry switch will be invested into product development.

Deutschland is the last ocean-going cruise vessel, owned or operated by a German company, flying the German flag.

Hapag-Lloyd Kreuzfahrten, which previously also registered ships in Germany, gave up doing so in the late 1990s when it took delivery of its current Europa.

The intended flag switch has released a storm of protest in Germany, and lead to stark reactions not only by trade union representatives, but also government officials.

Karl-Heinz Biesold, head of the shipping section group of the powerful Verdi trade union, said he was ‘appalled and peeved’ about the decision, claiming Deilmann wanted ‘to save money at the cost of the crew’.

He threatened protests, indicating these might take place during the Olympic Games. Deilmann Reederei has confirmed that post any registry switch it has no plans to change the crew onboard.

A representative of the German government released a blunt statement as well. ‘With deep worry I take note of Deilmann’s announcement to flag out the Deutschland’, the Coordinator of the German Government for the Maritime Industry. Hans-Joachim Otto, said.

Otto is a member of the Liberal Democrats, the junior partner of the German federal government.

A more aggressive statement came from a member of the Christian Democratic Union: Hartmut Hamerich, the party’s spokesman for touristic affairs in the Schleswig-Holstein federal state parliament, told a newspaper that no guest could enjoy relaxing holidays and a nice cruise, ‘knowing the staff is underpaid and safety standards have been reduced for cost reasons.’

There is support of Deilmann’s decision within wider German shipping circles due to the German government’s decision to heavily reduce subsidies which previously aimed to compensate part of the cost disadvantages of ships under German flag.

An industry observer said the decision was also a result of the current government’s apparently limited interest in maritime matters and generally hapless shipping policy.

The Merkel government has received much criticism for its budget cuts affecting the maritime industry and for its slow decision-taking on maritime infrastructure investments.

Others say it lacks maritime expertise – the so called ‘Maritime Coordinator’ Otto, for example, is a professional politician who previously worked as a lawyer in Frankfurt and lacks any career background in shipping or related industries.

The Malta registry has been growing in popularity, particularly within the cruise sector. It appeared for the first time in Seatrade's top five cruise ship registries in 4th position in 2008 with 22 ocean-going cruise ships. In December 2011, it had moved into second place with 37 ships accounting for 11% of market share.
 

   
 

   
 

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