Tag Archives: flag states

Federal Maritime Commission investigating Flags of Convenience

It’s about time for some agency to look at flags of convenience. Some states are abetting sanctioned trade, and quite a few do not have the means or intent to enforce regulations for safety, environmental, and labor standards. It’s increasing risk for marine traffic and for mariners.

The US Federal Maritime Commission (FMC) may not be the best positioned for this investigation right now. The US government has shown that it may use its powers to punish views of other nations, rather than in the interest of collaboration on mutual goals. And the US has withdrawn from some international agencies and agreements, showing a lack of collaboration. Recently the US State Department has threatened the International Maritime Organization (IMO) over its push to impose greenhouse gas emission controls and standards on international shipping.

These actions reduce the effect of any unilateral action by the US. It’s likely they will be ignored. That is something the current US administration will not like, but it’s inevitable.

Let’s hope the FMC figures out real actions that will help flag states increase compliance with international shipping standards.

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Barry Parker, New York Correspondent

September 3, 2025

https://www.seatrade-maritime.com/regulations/federal-maritime-commission-investigating-flags-of-convenience

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Nick Savvides, Europe correspondent

September 4, 2025

https://www.seatrade-maritime.com/regulations/imo-member-states-tire-of-us-threats-over-climate-rules

Dark Fleets and Flag States

It’s no secret that flag states are a weak point in maritime standards and regulations enforcement. Shipowners can easily circumvent rules by reflagging to a state that is more interested in the revenue from fees than in enforcement. And there are lots of them.

This article paints a darker picture than we have heard of– outright bribery of flag states. The motivation is to skirt sanctions of Russian entities and other a few other countries such as Iran.

According to the article, the Paris Memorandum of Understanding on Port State Control (Paris MoU) has released details of how states are trying to allow their ships to avoid detentions for violation of sanctions. One mechanism was to make bilateral agreements with port states.

I don’t quite see how the bribery angle works, though.

But with dark trade increasing, there’s no question that it would be worthwhile for shipowners to bribe flag states to register old and poorly maintained tankers. And most of those would find their way into the petroleum trade to Asia from Russia.

Dark fleet vessels engage in tactics like dangerous ship-to-ship transfers and AIS masking, which can allow oil to move without being affected by the sanction rules.

I hope the maritime authorities, such as the IMO and P&I clubs, will come up with improved procedures to stop unsafe practices.

Sam Chambers May 22, 2024

https://splash247.com/dark-fleet-registers-seen-bribing-flag-states-to-avoid-detentions-paris-mou/

Liberia replaces Panama as the world’s largest flag

Flag state selection by shipowners is becoming influenced to a great degree by geopolitical concerns. A sign of this change is Panama’s loss of the largest flag state title.

One of the factors is certainly Panama’s recent attempt to improve the quality of the shipping registered under its flag. The Panama Registry purged a large amount of substandard tonnage from its rolls. Much of this tonnage was ships engaged in dark or gray trade, skirting Ukraine War sanctions on Russia, making unsafe ship-to-ship transfers, and hiding locations from the AIS system.

This action is coupled with Panama’s alliance with the US Coast Guard standards for shipping safety. Ships registered in Panama will need to comply with the rather strict safety rules the US uses. These are signs that Panama wants to be considered a premier place to register a ship with no substandard tonnage.

I believe the shift to Liberia and other flag states is largely determined by geopolitics. The records reviewed here, compiled by Clarksons, show also that smaller states like Malta and Cyprus, which are right in the line of fire of the Ukraine War’s shipping, have also suffered.

It is really interesting that Germany has risen markedly in the rankings. Perhaps this reflects renewed interest in German shipping. Germany has been spending money on shipping recently, deepening the Rhine to reach Hamburg, and also aiding inland water routes to reduce truck traffic and save fuel for the tonnage of cargo moved.

The nice figure below shows the rankings today of the flag states.

 Sam Chambers July 28, 2023

Liberia replaces Panama as the world’s largest flag