Luxembourg boasts one of the lowest detention and deficiency rates in Europe
Luxembourg is classified as a White-Listed flag by both the Paris and Tokyo Memoranda of Understanding (MoUs). It is also recognized by the United States Coast Guard for its commitment to excellence in ensuring compliance with international standards.
Annual flag state inspections complement Owners’ own regulatory compliance efforts and help mitigate operational disruptions that may negatively impact vessel profitability and residual value. A clean performance record can notably extend a vessel’s commercial life and protect its resale value.
A vessel’s port state control record can also provide a clear indicator of future insurance claims.
Safeguard Vessel Profitability and Asset Value
Designated “Low Risk” by major global MoUs, the Luxembourg fleet benefits from greater inspection intervals due to its reduced ship inspection priority.
This record of quality helps Owners avoid detentions and deficiencies that could otherwise occasion important legal, financial and commercial consequences :
- Vessel off-hire periods
- Deferred commencement of laytime from compromised Notice of Readiness (NOR)
- Demurrage charges and other costs arising from delayed cargo operations
- Insurance cover exclusions for breach of warranty and increased premiums
- Event of default under the terms of a facility agreement or mortgage deed for breaching Owner covenants related to vessel operation and maintenance
- RightShip vessel rating downgrades
- Loss of Oil Major Approval
- Reduced charter earning capacity and vessel resale value
- Performance of charterparty, carriage of goods contracts and S&P agreements
- Trading bans in major regional MoU ports
- Negative publicity and inclusion on published MoU low performance lists
- Legal costs for claims and appeals related to and arising from detention