Home > FTDO > Statement of Chairman Louis E. Sola on FMC Investigation into Flags of Convenience and Unfavorable Conditions Created by Certain Flagging Practices

Statement of Chairman Louis E. Sola on FMC Investigation into Flags of Convenience and Unfavorable Conditions Created by Certain Flagging Practices

The Federal Maritime Commission’s nonadjudicatory investigation both calls attention to the longstanding problems associated with irresponsible flagging practices and seeks to identify the steps necessary to bring more uniformity and responsibility to the world’s ships registries.

Unscrupulous owners and operators, or those involved in illegal activities, often seek refuge in registries minimally concerned with compliance and transparency. Carelessly administered registries create the permissive environments disreputable ship owners and operators need to circumvent regulations, taxes, labor requirements, and other obligations they perceive as too expensive, intrusive, or burdensome. Similarly, vessels involved in smuggling and other illicit activities are practiced at jumping from indifferent registry to indifferent registry as part of their strategy to avoid detection and evade international sanctions. 

The ocean-linked supply chain is endangered by low quality, disinterested ship registries, and it is past time for decisive leadership to work towards remedying these conditions in a meaningful way. 

Chairman Louis E. Sola is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed here are his own and do not necessarily represent the position of the Commission.