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:
“There’s an enduring American compulsion to be on the side of the angels. Expediency alone has never been an adequate American reason for doing anything. When actions are judged, they go before the bar of God, where Mom and the Flag closely flank His presence.”
—Jonathan Raban (b. 1942)
“Today democracy, liberty, and equality are words to fool the people. No nation can progress with such ideas. They stand in the way of action. Therefore we frankly abolish them. In the future each man will serve the interest of the state with absolute obedience. Let him who refuses beware.”
—Charlie Chaplin (1889–1977)