Category Archives: maritime

Flag-Hopping is extreme

Ships are changing their flag registry much more often than they used to. Much of this is because the older ships are gravitating to the ‘dark’ or ‘shadow’ fleet, which specializes in avoiding sanctions.

Many of these newly popular flag states have few regulations and little power to provide oversight on the registered ships. That’s what some ship operators want.

In addition, changing flags frequently circumvents enforcement by anyone. The law of the sea is that each ship is nominally required to enforce the laws of its flag state. But some of the flag states have no relevant laws, or very weak ones, and provide no means of enforcement. And jumping flags means that even if some enforcement is tried, it will likely not apply to the vessel by the time the complaint is heard.

African states are frequent choices of shipowners who choose to use alternate flagging. Aside from Liberia, a major flag state, which has a robust governance, many African states use flagging as a revenue source with no actions required. This threatens safety, environmental disaster, and seafarer welfare. The chart below from Clarkson’s, obtained from the article linked below, shows how changes in African registry have ramped up.

The flag-jumping is connected to the fracture in the shipping world between those operators aligned with the EU, US and the West, and those aligned with Russia, to some extent China, and other sanctioned states such as Iran. It’s likely to continue as long as the fracture intensifies.

Management of shipping, safety on board and in port, and welfare of seafarers, is taking a back seat in the meantime.

Sam Chambers October 23, 2025

https://splash247.com/flag-hopping-hits-extreme-levels/

China prepares retaliation playbook

China is taking preemptive action against the US’s plans to hike port fees for China-linked tonnage.  The port fees are scheduled to come into effect on October 14, but there haven’t been any administrative rules set yet.

So we don’t know how, or if, they will be collected.

Quite a few experts believe that there won’t ever be any. The box-booking platform Freightos is one source mentioned in the article. Trump has a history of putting penalties out there and giving way in negotiations just before they will go into effect. It’s known as the Trump Always Chickens Out (TACO) effect.

I agree that we may never see any container ship fees. But I am also wary of what Trump may be giving away in the negotiations with China.

And I think history tells us that we will see severe blowback in terms of various trade restraints placed by foreign nations. These will hurt American businesses.

 Sam Chambers September 30, 2025

https://splash247.com/china-prepares-retaliation-playbook-ahead-of-us-port-fee-deadline/

Chinese ships dropped from U.S. routes

It seems that there is enough extra capacity in container shipping carriers’ fleets so that Chinese-built or Chinese owned ships need not be used on Asia-Pacific routes. Carriers have already announced plans to redeploy Chinese-built ships to other routes. So these shipping lines won’t be paying the US port access fees Trump put into place.

Will anyone be paying them? That’s the question now. The Trump administration’s estimates of the revenue these charges will bring in are way too high. No big money for US shipping improvements.

It’s another example of international ocean carriers and shippers’ immense innovativeness when a barrier to trade is erected. These entrepreneurs will always find a way around the barrier. One example here is ships calling at Canadian ports like Prince Rupert or Mexican ports like Ensenada instead of their US counterparts, avoiding the fees, but still able to provide good service via rail into US customers.

Something similar will happen with US tariffs. Enterprises will find a way around the rules.

That’s been happening since the dawn of navigational history, if not before. The American Revolution was in part about avoidance of requirements imposed by England on the shipment of goods between England and its colonies. The American cargo fleet, run by entrepreneurial sea captains and shipping firms, was an end-around the British shipment rules. Imposing those rules made the Americans mad, and added to the furor about independence.

With the Trump tariffs, too, international commerce will find a way. The result will be much lower tariff fee collections than Trump’s ridiculous projections. It won’t pay for much of anything, let alone trillions. We’re only seeing big numbers now because shippers get caught in the uncertainty; thinking the tariffs are off, they ship the goods, but by the time the goods arrive there’s a tariff again. But once burned, twice shy!

We haven’t seen big declines in Asia-West Coast trade yet, even though container unloadings at the West coast ports are down somewhat. But they are coming. Once firms get serious about minimizing landed cost, shipments could drop another 30% or more. And firms will make sure what they do have to ship is paying lower rates, even if they need to shift the source to another country.

The long-term lesson of history is that Tariffs are a weak tool for boosting a nation’s interests. Most often they wind up just making folks in trade mad, and making them less likely to support the tariffing nation’s interests in any way.

Stuart Chirls Friday, September 12, 2025

https://www.freightwaves.com/news/rates-spin-as-chinese-ships-dropped-from-u-s-routes