Fishing Vessel vs. Charter Fishing Vessel: What the MSMSR Actually Requires

A client called us recently with a question that comes up constantly in our work: "I run guided fishing trips - do the new MSMSR regulations apply to me?"

The short answer is: it depends on what your vessel is certified to do, not what gear you have on board. The Marine Safety Management System Regulations (MSMSR), which came into force on July 3, 2024, draw a very specific line between fishing vessels and charter fishing vessels - and falling on the wrong side of that line without knowing it can result in missing compliance deadlines, operating without required documentation, and potential enforcement consequences.

This article explains how Transport Canada makes that distinction, what each category of operator actually needs to do, and why the misconception that "fishing vessels are exempt" is only half the story.

The Foundational Distinction: What Are You Certified to Do?

Under the MSMSR, the classification of a vessel is determined not by what activity you are doing on any given day, but by what your vessel is certified to do.

This is where many operators get tripped up. You may run guided fishing trips, carry fishing rods, sell charters, and never move passengers any other way - but if your vessel is certified to carry passengers for hire, Transport Canada classifies you as a passenger-carrying vessel. The fishing activity is secondary. The passenger certification is what drives your regulatory obligations.

Conversely, a vessel that is used exclusively for commercial fishing - crewing, setting gear, selling catch - and is not certified to carry passengers for hire sits in an entirely different category under the regulations.

Commercial Fishing Vessels: The Exemption Explained

Transport Canada has carved out a specific exemption for traditional commercial fishing vessels. The MSMSR does not apply to:

Fishing vessels that are 24.4 metres or less in length and 150 gross tonnes or less.

The rationale is straightforward: fishing vessels operating under the Fishing Vessel Safety Regulations are already subject to certain safety management requirements under that separate regulatory framework. The MSMSR was designed to extend SMS obligations to commercial vessel operators who were not previously covered - not to double-regulate sectors that already had oversight in place.

So if you hold a fishing vessel licence, you operate a vessel under 24.4 metres, your gross tonnage is 150 GT or below, and you do not carry passengers for hire, the MSMSR does not apply to your vessel. You are exempt. Full stop.

Charter Fishing Vessels: You Are a Passenger-Carrying Vessel

If you take clients out for guided fishing trips and charge them to be on your boat, you are in the charter fishing business. And in most cases, that means your vessel will be certified to carry passengers for hire - which means the MSMSR applies to you as a passenger-carrying vessel.

Charter fishing operators typically fall into one of two classes under the MSMSR, depending on vessel size and gross tonnage:

Class 4B - The Most Common Classification for Charter Operators

Class 4B captures passenger-carrying vessels that are less than 24 metres in length and 15 gross tonnes or less. This is where the majority of charter fishing operators in Canada land. As a Class 4B operator, your obligations include:

• Developing and implementing a documented Safety Management System (SMS)
• Designating a qualified Ship Manager responsible for managing the shore-based and on-board operations of your vessel
• Submitting a Declaration of Initial Compliance (Forms 85-0547A and 85-0547B) to Transport Canada - not the full SMS manual itself
• Obtaining a Canadian Ship Safety Certificate (CSMC) and a Canadian Document of Compliance (CDOC)
• Keeping all required certificates and SMS documentation on board and available for inspection

Your compliance deadline is the first anniversary of your Certificate of Registry after July 3, 2025 - or, if your vessel holds a Safety Inspection Certificate, the anniversary of that certificate's date of issuance. Note that Transport Canada reviews applications within up to 45 business days, with current backlogs running closer to 13 weeks. Build that into your timeline.

Class 4A - Larger Charter Vessels

If your charter fishing vessel is less than 24 metres in length but greater than 15 gross tonnes, you fall into Class 4A. The SMS requirements are similar, but Class 4A vessels require full SMS submission and review rather than the simplified Declaration process available to most Class 4B operators.

Class 5 - Non-Passenger Commercial Vessels Under 15 GT

Small commercial fishing vessels that do not carry passengers and are 15 gross tonnes or less fall into Class 5. While Class 5 vessels must develop and maintain an SMS under the MSMSR, they do not require a Canadian Maritime Document (CDOC or CSMC) and have no formal submission to make to Transport Canada. The SMS is maintained internally and must be kept on board.

The Scenario That Catches Operators Off Guard

The most common scenario we encounter: an operator who has been running fishing charters for years, thinks of themselves as "a fishing boat," and believes the fishing vessel exemption protects them. It does not.

What determines exemption status is not what you fish for or what you haul in. It is whether your vessel's Certificate of Inspection authorizes it to carry passengers for hire. If that box is checked, you are a passenger-carrying vessel under the MSMSR - and you have compliance obligations that must be met by your certificate anniversary date.

The inverse scenario also exists: an operator who runs a small commercial fishing operation, holds a fishing vessel licence, and has assumed they must now build an SMS. If that vessel is not passenger-certified, is under 24.4 metres, and is 150 GT or less, the exemption applies and no MSMSR compliance is required.

What "Occasionally" Doesn't Matter

One question we hear regularly: "I only take clients out a few times a year - does that change anything?"

No. Transport Canada's position is clear: it is the vessel's certification, not the frequency of passenger carriage, that determines classification. If your vessel is certified to carry passengers for hire, you are a passenger-carrying vessel under the MSMSR whether you carry passengers once a week or twice a season. The certification is what counts.

This principle has real consequences for operators who hold passenger certification as a precaution or for flexibility but rarely use it. If you want to preserve that certification, you also inherit the compliance obligations that come with it.

What a Compliant SMS Looks Like for a Charter Fishing Operator

A Safety Management System for a charter fishing operator does not need to be a multi-volume manual. For a Class 4B operation - one or two vessels, a small crew, seasonal operations - a well-structured SMS is a proportionate, practical document that covers the operations your vessel actually conducts.

At a minimum, a compliant SMS includes:

• A safety and environmental protection policy signed by the Authorized Representative
• Defined lines of authority and communication between shore-based and on-board personnel
• Operating procedures for safe vessel operation specific to your routes and passenger activities
• Emergency preparedness and response procedures (man overboard, fire, flooding, passenger injury)
• An incident and near-miss reporting procedure
• A process for internal audits and management review
• Crew training and competency records

The SMS must be kept on board and available for inspection at all times. For Class 4B operators, you do not submit the SMS manual to Transport Canada - you submit the Declaration of Initial Compliance (Forms 85-0547A and 85-0547B), which confirms that the SMS has been developed and implemented. Transport Canada may request to review your SMS during an inspection or audit.

The Ship Manager Question

Every vessel subject to the MSMSR must have a designated Ship Manager - a qualified person responsible for managing the shore-based and on-board operations of the vessel. For a charter fishing operator, this is almost always the owner-operator. You can designate yourself as Ship Manager as long as you are a qualified person under the regulations.

Aurora Marine Safety Group does not take on the Ship Manager role for our clients. The Ship Manager must be someone with direct operational accountability for the vessel - that is your responsibility as the Authorized Representative. What AMSG does is build your SMS, walk you through the compliance process, and prepare your Declaration of Initial Compliance submissions so that you - as Ship Manager - are in a position to manage, maintain, and demonstrate that system going forward.

Summary: How to Know Where You Stand

Before you can determine your MSMSR obligations, you need to answer three questions:

1. Is your vessel certified to carry passengers for hire?
Check your Certificate of Inspection. If it authorizes passenger carriage for hire, you are a passenger-carrying vessel under the MSMSR.

2. What is your vessel's length and gross tonnage?
Both are listed on your Certificate of Registry. These figures determine your MSMSR class - and therefore your specific certification pathway and documentation requirements.

3. When is your compliance deadline?
For vessels requiring a Safety Inspection Certificate, your deadline is the first anniversary of that certificate's issuance date after July 3, 2025. For vessels not requiring a Safety Inspection Certificate (many Class 4B charter operators), it is the anniversary of your Certificate of Registry. Factor in TC's 45-business-day review window - backlogs currently run approximately 13 weeks.

If you are a commercial fishing operator whose vessel is not passenger-certified and you fall within the 24.4-metre and 150 GT thresholds, the MSMSR does not apply to you. Your obligations remain under the Fishing Vessel Safety Regulations.

If you run guided fishing charters and your vessel is certified to carry passengers for hire, you are in scope - and if your compliance deadline has not yet passed, the time to act is now.