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:
“What is Americanism? Every one has a different answer. Some people say it is never to submit to the dictation of a King. Others say Americanism is the pride of liberty and the defence of an insult to the flag with their gore. When some half-developed person tramples on that flag, we should be ready to pour out the blood of the nation, they say. But do we not sit in silence when that flag waves over living conditions which should be an insult to all patriotism?”
—Anna Howard Shaw (1847–1919)
“The drama is complete poetry. The ode and the epic contain it only in germ; it contains both of them in a state of high development, and epitomizes both.”
—Victor Hugo (1802–1885)