Flag of Convenience, national flag flown by a ship that has registered in that country to avoid legal or tax commitments (also known as offshore registry). Flags of convenience are common in the merchant fleets of Liberia and Panama. Ships registered in these countries avoid legislation governing, for example, employment of sailors and minimum rates of pay.
In 1995, 75 million gross metric tons of shipping was registered in Panama, making it the world's largest merchant fleet. Ships registered under flags of convenience accounted for 34 percent of the world's fleet in 1993.
Thursday, February 19, 2009
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