Flags of convenience

Group 6

Outline

• Definition

• Advantages

• Disadvantages

Definition

• Ship registered under the maritime laws of a country which is not the home country of the ship's owners.

Quotes from business dictionary

The Republic of Panama

“more than 5,700 ships flying the Panama flag”-2011

Source: http://www.panama-guide.com/index.php?topic=flagged

Advantages

Low registration fee and tax cost

Operating cost reduction• Low wage

-“Operating costs for open registry ships are from 12-27% lower than traditional registry fleets”

Avoiding discrimination among nation

ARKO FlY (Mongolia)

Quote: http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/registships.html

Disadvantages

Difficulty in identifying the real ship-owner

Lack of safety policies for sailors

Usage of old or out of date ships

Disadvantages Usage of old or out of date

shipsInternational

Transport Workers'

Federation (ITF)’s- 2001

The loss of ships

All of the world 99: ships

Panama 15

Cyprus 8

St. Vincent 8

Cambodia 7

Source: http://www.philippinestoday.net/ofwcorner/July03/ofw703_2.htm

Disadvantages

Summary

Definition Advantages Disadvantages

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