MALTA Trends and Developments Contributed by: Ann Fenech, Adrian Attard, Martina Farrugia and Daniel-Luc Farrugia, Fenech & Fenech Advocates
Whether or not the EU will continue to intro - duce further far-reaching sanctions remains to be seen, and in the authors’ view will largely depend on the course of the ongoing war in Ukraine. However, it is reasonable to assume that the existing sanctions will remain in force in the coming months. The shipping commu - nity will therefore need to continue to exercise vigilance, to ensure that both ship-owners and operators are aware of and comply with each new wave of adopted sanctions, particularly if further measures are implemented at a regional level which directly or indirectly affect the EU shipping sector. Judicial Sales: Malta Committed to Ratifying the Beijing Convention Malta retains its position as a favourable juris - diction for the arrest of ships, and consequently continues to be a very popular jurisdiction for the holding of judicial sales. In terms of Maltese law, this may be conducted either by means of a public auction or carried out through private sales with the approval of the court. In both cases, the new purchasers would acquire a free and unencumbered title. Malta remains a forum of choice for enforcement for many ship financi - ers and mortgagees, principally due to its robust legal system which lends creditors substantial support. At the same time, the latter makes it easier for ship-owners to obtain financing when vessels are registered under the Maltese flag, since Maltese law grants financiers a significant degree of security. Last year saw a number of judicial sales by auctions taking place as well as several court approved applications being heard by Maltese courts. In January 2024, the EU Commission finalised all its internal processes to enable the EU itself to sign the Convention on the International Effects of Judicial Sales of Ships, signed in Beijing in
September 2023 – thereby paving the way for EU member states to sign the Convention. Malta took a leading role in this process, and together with UNCITRAL organised a second signing ceremony held in Malta on 19 June 2024. By the end of January 2025, the Convention had already garnered 31 signatories and one ratifica - tion. The EU is now completing the necessary procedures to enable ratification of said Con - vention. The Convention will enter into force 180 days after the date of the deposit of the third instru - ment of ratification, acceptance, approval or accession. This Convention is deemed to be a very important one in supporting stability and certainty in international trade. It ensures that when purchasers of vessels in judicial sales purchase ships free and unencumbered, they are able to trade their vessels without fear of re- arrest by the vessels previous creditors. Presently, the EU is now completing the neces - sary procedures to enable ratification. Given the rapid progress made, it is likely that the Conven - tion will come into force later in 2025. The Malta signing ceremony was attended by three Maltese ministers of state, all of whom reaffirmed that Malta will be one the first states to ratify the Convention. It is therefore expected that later this year Malta will ratify the Conven - tion and that Maltese domestic legislation on judicial sales will be updated to reflect the posi - tion under the Convention. The Merchant Shipping Act: Anticipated Amendments Including the Novel Finance Charter Instrument In late 2023, a bill was tabled before parliament to amend various provisions of the Maltese Merchant Shipping Act. In January 2025, during
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