Category Archives: governance

Latest Flag State Registries for shadow fleet

The shadow fleet consists of ships that are sanctioned by governments, or who are associated with sanctioned entities, such as shippers or brokers or owners. They’ve needed to be able to show a registration to get insurance or to enter ports.

But they need a flag state that isn’t going to ask very many questions. And that is not going to enforce the nation’s rules on your ship. And that isn’t going to care about how you maintain the ship or take care of the crew, or handle potential pollution problems. Most of the shadow fleet consists of older ships that can be expected to need more frequent maintenance.

Recently some flag states, such as Panama, have tightened their regulations substantially, and are committed to greater oversight. However, others still operate simply as rubber stamps for a fee.

The maritime intelligence firm Windward has reported that Nicaragua and Equatorial Guinea have started taking on shadow vessels in their flag registries.

There are also many cases of false-flag registries, which purport to be associated with a nation, but in fact are simply paper-shuffling offices set up to mislead those who rely on flag identification for activities such as port entry.

Some registries are often seen as “rubber stamps.” While they technically require “proof of insurance” and “non-sanctioned port” letters, the recent case of the tanker Apple (flying the Equatorial Guinea flag) shows that these vessels often ignore reporting requirements and operate under opaque ownership despite these formal rules.

The International Maritime Organization (IMO) recently approved new guidelines aimed at improving transparency in ship registration and cracking down on the growing misuse of flags.

We need to see how much the IMO actions actually affect the picture. But past history is not promising. The effect the IMO can bring to bear is at the nation level.

It’s unrealistic to expect nations to police external private firms that produce false-flagging documents. However, nations can have an effect by announcing their rejection of false-flag firms, by name and location.

Nations can have a substantial effect if they choose, like Panama, to announce and follow up on their enforcement of the rules. That would mean tracking possible use of their flag papers and striking off ships that are not using them legally, or are violating national and IMO rules, such as insurance and crew treatment.

I’m a skeptic that nations will stand up and do this. But recent actions by some flag states are good signs, and some stiffness on the part of the IMO may be rewarded.

Sam Chambers April 22, 2026

https://splash247.com/nicaragua-and-equatorial-guinea-emerge-as-latest-homes-for-sprawling-shadow-fleet/

Atle Staalesen

https://www.arctictoday.com/shadow-tanker-sailed-outside-200-mile-zone-to-avoid-norwegian-scrutiny/

Corporate governance in shipping

This article features an interview with Michael Webber, who has been tracking corporate governance in ocean shipping firms since 2016. He produces an annual corporate governance scorecard for shipping, now at his own firm, Michael Webber Research and Advisory.

One significant issue in shipping is the constantly changing mosaic of companies. Firms are constantly merging in companies and creating new spinoff firms, some containing only a single ship. It’s a chore to keep track of it all, let alone try to rate how well the firms are looking after shareholders. The ratings Michael provides are simply to inform readers of the practices the firms engage in. This helps investors and traders to understand whether the firm is practicing good corporate governance or engaging in bad practices.

Webber claims that companies that score low on his rating have trouble raising capital using equity. He thinks investors are becoming more selective. It’s not only affecting stocks on the market; IPOS are failing due to governance issues as well.

There are a lot of related party transactions in shipping. Some benefit public investors and some don’t. Because no one was looking very hard in the past, it can be complicated for an older firm, say from the 2000’s, to unwind old structures that were not examples of good governance. Some firms have been successful doing this, but Webber says shareholders are at an informational disadvantage when these transactions are proposed. His rankings try to shed light on the corporate governance of the actors, for the benefit of the shareholders.

Webber thinks governance is improving overall, and shipping has improved its image on Wall Street. His ratings help public shipping companies find opportunities to conform to best practices in governance, and that improves the image and reality.

The scorecard rankings for 2023 are shown below.

Image of Webber corporate governance ratings
(Source: Chart: Webber Research & Advisory)

The stock symbols of each firm are given. Webber has marked the firms that make no carbon disclosures.

Greg Miller· Thursday, July 27, 2023

Corporate governance in shipping: Who’s been naughty or nice?

Update: The University of Plymouth and the National and Kapodistrian University of Greece have announced a new ESG index to be revealed September 11th. It will be interesting to compare their work against Michael Webber’s.

Sam Chambers July 31, 2023

Maritime gets an ESG index