Flags of convenience or 'open registries' good as others: ICS study

THERE is little reason to think of "flags of convenience", more correctly "open registries", as less worthy than traditional flag states, according to a study by the International Chamber of Shipping (ICS).

The ICS Shipping Industry Flag State Performance Table for 2015/2016 demonstrates the lack of substance to arbitrary distinctions between open registries and traditional flag states, said ICS policy director Simon. 

"About two thirds of the world fleet is now registered with the eight largest ‘open registries, all of which show impressive levels of performance," he said. 

"While such distinctions might have been relevant 20 years ago, the ICS table continues to show they are no longer helpful," he said. 

The ICS table assesses the performance of flag states using criteria, such as Port State Control records, the ratification of IMO and ILO Conventions and participation at IMO meetings. 

While ship operators are responsible for compliance with safety and environmental rules, it is flag states, which a have primary responsibility for inspections and enforcement.

As a result, the London-based shipowners and operators group said it is important that the performance of flag states is subject to objective scrutiny. 

Following the UN's International Maritime Organisation's (IMO) agreement to make its member state audit scheme mandatory, ICS said that it was pleased to see the steps being taken to make audit reports available to the public via the IMO website.

The table is being distributed worldwide via ICS national shipowners' associations and their member companies, which cover over 80 per cent of the world's merchant fleet.