Quasi-Flag of Convenience Shipping: The Wave of the Future
Often manned by poorly trained and underpaid crew and owned by shadowy, unscrupulous characters with indeterminate nationalities, flags of convenience (FOC) ships have been pejoratively referred to as rust buckets, pirate flags, free boosters, and runaway ships. The United Nations has characterized FOC as shipping under which there exists no genuine link between the State and the ships, and in particular, under which the State does not effectively exercise its jurisdiction and control in administrative, technical, and social matters over ships flying its flag. From the earliest days, there has been opposition to FOC shipping. Lately, the disenchantment over this questionable form of open registry has led to the potentially rapid growth of what can be termed as quasi-FOC arrangements. The trend from FOCs to quasi-FOCs is traced, the legal framework for regulating international shipping is outlined, and the problems, opposition, and legal challenges to open registries are discussed. The emergence and growth of quasi-FOCs, which is expected to be the wave of the future in international shipping, are traced in detail.
Tax havens, Shipping industry, Registration, Maritime law, Manycountries, Regulation, Maritime industry, Law, International trade
Phang, Sock-Yong and Toh, R.
Quasi-Flag of Convenience Shipping: The Wave of the Future. (1993). Transportation Journal. 33, (2), 31. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/115