Flags of Convenience
The first open register was Panama in 1916. Fear for political instability and high and excessive consular fees led the president of Liberia, William Tubman, in 1948 to start an open register with the help of Edward Stettinius, Jr.. The World Peace of Stavros Niarchos was the first ship in that register. In 1967 Liberia passed the United Kingdom as the largest register. Nowadays, Panama — currently the largest register — and Liberia have one third of the world fleet under their flag.
Flags of convenience have lower standards for vessel, equipment, and crew the traditional maritime countries and often have classification societies certify and inspect the vessels in their registry, instead of by their own shipping authority. This made it attractive for ship owners to change flag, whereby the ship lost the economic link and the country of registry. With this, also the link between classification society and traditional maritime country became less obvious - for instance Lloyd's with the United Kingdom and ABS with the United States. This made it easier to change class and introduced a new phenomena; class hopping. A ship owner that is dissatisfied with class can change to a different class relatively easily. This has led to more competition between classes and a relaxation of the rules. This has led to the shipping industry losing confidence in the classification societies, but also by the European Commission.
To counteract class hopping, the IACS has established TOCA (Transfer Of Class Agreement).
In 1978, a number of European countries agreed in The Hague on a memorandum that agreed to audit whether the labour conditions on board vessels were according the rules of the ILO. After the Amoco Cadiz sank that year, it was decided to also audit on safety and pollution. To this end, in 1982 the Paris Memorandum of Understanding (Paris MoU) was agreed upon, establishing Port State Control, nowadays consisting of 24 European countries and Canada. In practice, this was a reaction on the failure of the flag states - especially flags of convenience that have delegated their task to classification societies - to comply with their inspection duties.
Read more about this topic: History Of The Oil Tanker
Famous quotes containing the words flags of, flags and/or convenience:
“No annual training or muster of soldiery, no celebration with its scarfs and banners, could import into the town a hundredth part of the annual splendor of our October. We have only to set the trees, or let them stand, and Nature will find the colored drapery,—flags of all her nations, some of whose private signals hardly the botanist can read,—while we walk under the triumphal arches of the elms.”
—Henry David Thoreau (1817–1862)
“Gentlemen, those confederate flags and our national standard are what has made this union great. In what other country could a man who fought against you be permitted to serve as judge over you, be permitted to run for reelection and bespeak your suffrage on Tuesday next at the poles.”
—Laurence Stallings (1894–1968)
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—Belva Lockwood (1830–1917)