The Commissioner for Maritime Affairs of the Ministry of Economy and Foreign Trade has just recorded two brand new shipping vessels, and five refurbished  ships. The number of ships flying the Luxembourg flag now stands at 205 units.

By integrating these new ships into the Belgian group DEME, the French group Bourbon, and the Jan De Nul Group, the Luxembourg records a fleet tonnage at 1.6 million tonnes with 205 ships and becoming, according to the Ministry of 'Economy and Foreign Trade, the largest shipping register for a landlocked country in the world.

The last ships registered in Luxembourg, are primarily specialised dredging vessels and offshore marine services.

This whole concept is quite baffling to many people as how can a tiny landlocked country like Luxembourg, that also does not have the level of trade to match the number of vessels, have so many ships registered in the Grand Duchy? 

The answer is quite simple: Tax.  Luxembourg law provides competitive advantages in regards to the taxation of shipping companies resulting in many companies registering in the country.  

Although not quite in the same “boat”, aircraft are also often registered in Luxembourg for similar reasons.

As for shipping and the expansion of the maritime fleet, Luxembourg is not ready to stop at these new ships. Two new vessels should be registered this week, and six others are awaiting analysis and inspection.