The flag state of a commercial vessel is the state under whose laws the vessel is registered or licensed.
The flag state has the authority and responsibility to enforce regulations over vessels registered under its flag, including those relating to inspection, certification, and issuance of safety and pollution prevention documents. As a ship operates under the laws of its flag state, these laws are used if the ship is involved in an admiralty case.
The term "flag of convenience" describes the business practice of registering a merchant ship in a sovereign state different from that of the ship's owners, and flying that state's civil ensign on the ship. Ships are registered under flags of convenience to reduce operating costs or avoid the regulations of the owner's country.
Panama is currently the world's largest flag state, with almost a quarter of the world's ocean-going tonnage registered there.
Read more about Flag State: Ship Register, Regulations
Famous quotes containing the words flag and/or state:
“My dream is that as the years go by and the world knows more and more of America, it ... will turn to America for those moral inspirations that lie at the basis of all freedom ... that America will come into the full light of the day when all shall know that she puts human rights above all other rights, and that her flag is the flag not only of America but of humanity.”
—Woodrow Wilson (1856–1924)
“Art is identical with a state of capacity to make, involving a true course of reasoning. All art is concerned with coming into being ... for art is concerned neither with things that are, or come into being, by necessity, nor with things that do so in accordance with nature.”
—Aristotle (384–323 B.C.)