Landlocked Switzerland charts new maritime course

Only 14 ocean vessels currently fly the Swiss flag. Keystone / Dominic Favre

Switzerland has adopted the foundations of a plan to revive the fortunes its flagging ocean-going merchant navy fleet.

On Friday, the government set out a new Maritime Strategy 2023-2027 for the landlocked country that will focus on six thematic reforms.

+ Read how Switzerland rescued its merchant navy fleet

“As a globally oriented economy, Switzerland relies on smooth global logistics chains and maritime trade,” the government stated. In addition, several Swiss-based sea transport and logistics companies operate around 900 ships.

However, the Swiss flag currently flies on only 14 ocean vessels, well down from the 50 ships in 2017. In that year, an embarrassing shipping fraud cost the taxpayer CHF215 million ($237 million), forcing a rethink of maritime strategy. 

The government says it is “relaxing the registration requirements for merchant ships” to “create an attractive and competitive Swiss flag with a reliable regulatory framework”.

At the same time, Switzerland wants to play are larger role in developing international maritime law and research while “continuing its commitment in the areas of marine biodiversity, plastic pollution and climate protection”.

In line with its general climate policy, Switzerland added that it is committed to achieving net-zero greenhouse emissions for shipping by 2050.

Separately, the government is studying the principle of tonnage-based taxation based on the ship’s loading capacity.

This method of taxation is based on the loading capacity of the ship rather than profit, which should lower tax bills for shipping companies.