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Philippines to raise maritime violation fines by end of 2025

Philippines to raise maritime violation fines by end of 2025
Liz Lagniton October 3, 2025 https://maritimefairtrade.org/philippines-hosts-mret-summit-2025-to-futu...

The Philippines’ Maritime Industry Authority (MARINA) is steering toward stricter enforcement and higher penalties for maritime violations, aiming to make non-compliance costlier than following the rules.

With over 23,000 registered domestic vessels crisscrossing Philippine waters, from passenger ferries to fishing boats and private yachts, MARINA is tightening the ropes on maritime safety, citing outdated fines, recurring safety lapses, and gaps in long-term compliance.

The agency’s top officials confirmed that a comprehensive review of penalty structures is underway, with a new policy expected to be finalized and implemented before the end of 2025.

“We are reviewing our penalties because it seems it’s too small, and [operators] can easily pay to settle them,” MARINA’s administrator Sonia Malaluan told reporters during a recent press conference in Manila.

“In the next few months or before the end of the year, we will issue increased fines,” she added.

The current penalties for maritime violations are rooted in MARINA Circular 120, issued in 1997, nearly three decades ago. Since then, the scale and complexity of the maritime sector have grown considerably, but the fine structures have largely remained the same.

Malaluan and MARINA’s officer-in-charge deputy administrator for operations Emmanuel Carpio both acknowledged that the outdated penalties no longer function as a deterrent.

The MARINA chief noted that some operators view fines merely as a cost of doing business, emphasizing that MARINA’s objective is to make compliance more cost-effective than committing violations.

“It’s our objective that it should be cheaper to comply than to violate,” said Malaluan.

According to Carpio, one of the most pressing reasons for reform is that operators often weigh penalties against potential profits and choose non-compliance when the fines are low.

“For them, it’s cheaper to pay the fine, but that carries the risk of incidents,” he emphasized during a separate interview at the BEACON Expo 2025 on September 30.

Tailored fines by vessel type and violation

The updated penalties will amend MARINA Circular 120 and will take into account vessel type, size, and the severity of the violation. Carpio revealed that the reforms will establish a more nuanced structure instead of the current flat-rate approach.

“For instance, you can’t fine a small boat P100,000 (US$1,725) when a large ship gets the same fine,” Carpio said. “We’re making sure the fines and penalties are justifiable.”

The new system will reflect the diverse nature of the Philippine fleet. Passenger ships, fishing vessels, cargo carriers, and small boats like bangkas will all be covered under the policy, with fines scaled accordingly.

Passenger vessels, in particular, will be held to strict compliance with Certificate of Public Convenience (CPC) conditions, a key regulatory document that does not apply to cargo vessels.

“There are violations on both the commercial and technical sides,” Carpio explained. “On the technical side, we’re talking about maritime safety certificates. On the commercial side, it’s about compliance with CPC conditions. There are two certificates needed for a vessel to sail — one technical, one commercial.”

Crucial role of random inspections

Although vessels undergo mandatory annual inspections to renew their safety documents, valid for only one year, MARINA has recognized a trend: Compliance often drops off after scheduled inspections.

“Life-saving appliances at the time of regular inspection are complete, but in the following days and months are not maintained or have expired,” Carpio noted, citing random inspections as a vital enforcement tool.

In April, MARINA launched a more aggressive compliance monitoring campaign, particularly for passenger vessels during peak travel periods.

These efforts are closely coordinated with the Philippine Coast Guard, which enforces MARINA’s policies and conducts regular as well as surprise inspections.

“We now hold quarterly forums with the Coast Guard to discuss implementation,” Carpio said. “We also want to bring in the PPA for more integrated enforcement.”

Most common violations

Among the most frequent infractions uncovered during inspections are defective or missing life vests, expired fire extinguishers, unqualified officers onboard, and deteriorated vessel conditions.

“Sometimes the officers onboard are not the ones who are actually certified or licensed,” Carpio explained. “MARINA issues the manning certificate that specifies the required crew, but if the Coast Guard misses checking, a ship may end up sailing with an unqualified officer.”

Another persistent issue is overloading, particularly on passenger ships. Although it has declined in recent years due to tighter regulations, it remains a concern on high-demand routes, according to Carpio.

The agency also tracks compliance with International Safety Management standards, including the Safety Management Manual. Carpio emphasized that while policies may be in place at the company level, lapses often occur at the operational level, where captains and crew make real-time decisions under pressure.

The updated penalty policy has been in the pipeline for some time, but officials say it is finally nearing completion. The process involves internal review by MARINA’s management committee, followed by approval from its board.

Carpio said that while some issues are still being addressed, the policy could be issued within the year if it is finalized.

The agency is aware that the cost of delay may be high. In a rapidly expanding maritime industry, maintaining status quo penalties invites non-compliance and compromises passenger and crew safety.

Carpio said it is time to amend the policy (Circular 120), noting that a review and revision are necessary.

The maritime industry plays a vital role in the Philippines, an archipelagic nation of 7,641 islands. With thousands of registered domestic vessels, including passenger ferries, cargo ships, fishing boats, and private yachts, the sector provides essential connectivity for goods, services, and people.

The proposed changes in fines will affect this entire fleet. However, the agency is taking care to ensure that small operators are not unfairly penalized. For instance, bangka owners who may already be financially constrained will face scaled-down penalties to maintain equity and proportionality.

Ultimately, the goal is not to penalize but to prevent accidents, injuries, and loss of life. Higher fines, paired with intensified inspections and stronger enforcement partnerships, are designed to raise the cost of negligence.

Earlier, Malaluan said that improving safety involves not only enforcement but also raising overall standards.

The approach reflects a shift in philosophy: From reactive enforcement after violations or accidents occur, to proactive risk management through compliance incentives.

Partnerships across agencies

To achieve this, MARINA is expanding its collaboration with other maritime and port authorities. Beyond its regular forums with the Coast Guard, the agency aims to involve the PPA to address broader issues like port damage, insurance, and unpaid fees.

“We need to figure out how to cover those repair costs — this is where insurance should come in,” Carpio said.

MARINA also welcomes feedback not just from partner agencies but from passengers themselves. The agency encourages travelers to report poor vessel conditions, lack of safety equipment, or other red flags, especially in between inspection cycles.

The Philippines’ domestic maritime industry is essential but complex, encompassing thousands of vessels of all sizes and a patchwork of regulations. As MARINA moves to overhaul its outdated penalty structure, it signals a broader commitment to reform, modernization, and, most importantly, safety.

By the end of 2025, operators will likely face a new regulatory landscape where violations carry real financial consequences and compliance becomes the more viable business decision.