Regulation, representation and the flag market

Large-scale oil spills and flag-use within the global tanker fleet

“…Within the current system of international maritime governance, it is acceptable and relatively easy for vessel owners to occasionally change the flag of their vessels. Thus, they can choose to re-flag under a register that does not actively promote and enforce minimum safety and environmental standards (Alderton & Winchester 2002 b ). A number of flag states have historically maintained poor detention records (such as Cambodia) and in addition, new poorly-performing flags have been appearing within PSC inspection records in recent years with increasing frequency (for example, Togo and Saint Kitts & Nevis; Alderton & Winchester 2002 a , b ; Appendix 1, Table S3, see supplementary material at ).…”

“…A number of flag states that preside over a low percentage of nationally owned vessels were categorized as FoIs and the list of FoNCs included flags that appear to be closed to foreign owners (Appendix 1, Table S2, see supplementary material at ). It is perhaps unhelpful then to characterize all FoCs in the same way (Alderton & Winchester 2002 a , b ), but a system which allows registration with foreign flags (FoCs) surely makes it easier for vessel owners to access FoNCs. Although FoCs are not necessarily FoNCs, the average percentage of nationally owned vessels under registers that fell into each flag category was lowest for the group of flags that had been categorized as FoNCs (42% versus 67% for FoPCs and 78% for FoIs; Appendix 1, Table S2, see supplementary material at ).…”

Cruise Ship Travel

“…The flag or maritime registry administration is a regulatory agency that oversees the operational procedures, ship specifications, crew qualifications, practices, and conformity to laws of commercial vessels registered in a particular country. 11,16,17 Cruise lines may register their ships with maritime agencies in countries such as the Netherlands, Norway, the United Kingdom, and the United States. They often choose to register their ships in the country of ownership of the cruise line or the site of the ship's production.…”

“…The "flag of convenience" concept originated in Panama just after World War I, when U.S. merchant and passenger vessel registrations began to be transferred to Panama to take advantage of favorable tax incentives and to avoid restrictive prohibition laws. 16,17 The open maritime registrations continue to provide the respective countries with a substantial revenue flow and the registrants with significant financial advantages pertaining to tax, labor, and liability costs. Each flag state, whether it provides open maritime registrations or the more traditional maritime state flag status, is required to be an International Maritime Organization (IMO) member nation and abide by its maritime safety resolutions, conventions, and codes.…”