What's the problem with flags of convenience?

Nautilus has always been a supporter of the ITF campaign against flags of convenience, and the Union has pledged to redouble its efforts to end the practice since a resolution on the subject was adopted at its 2023 General Meeting. Sarah Robinson takes a closer look at the flag of convenience system, and explains why maritime trade unions want to see the back of it

Long ago, countries were proud to have their own merchant fleet. Commercial vessels owned in a particular nation would be on that nation's shipping register and fly that nation's flag.

However, during the 20th century, changes were made to many shipping registers that loosened the required link between the country of ownership and a vessel's flag. Shipowners began to pick and choose which flag their vessels would fly, based initially on cost savings, but later also on the prospect of an easy ride from certain flag states when investigations took place. This is what came to be known as choosing a 'flag of convenience' (FoC).

The impact of FoCs on seafarers

The International Transport Workers' Federation (ITF) defines a flag of convenience ship as 'one that flies the flag of a country other than the country of ownership'. Some FoC registers are better than others, but the very existence of the system creates a lack of transparency and accountability that lowers standards and harms seafarers.

According to the ITF, workers onboard FoC vessels are more likely to experience:

• very low wages
• poor onboard conditions
• inadequate food and clean drinking water
• long periods of work without proper rest, leading to stress and fatigue

Meanwhile, by 'flagging out', shipowners can take advantage of:

• minimal regulation
• cheap registration fees
• low or no taxes
• freedom to employ cheap labour from the global labour market

The ITF believes there should be a 'genuine link' between the real owner of a vessel and the flag the vessel flies, in accordance with the United Nations Convention on the Law of the Sea (UNCLOS). 'FoC registries make it more difficult for unions, industry stakeholders and the public to hold ship owners to account,' stresses the Federation.

Nautilus supports this view, arguing that members' interests are best served by the genuine link principle.

Mitigating the effects of FoCs

Flags of convenience have become so prevalent in the industry that most Nautilus members have probably sailed on an FoC vessel at some point. Because there are so many seafarers affected, the ITF acknowledges that action is needed to improve the daily lives of thousands of seafarers onboard FoC vessels today – while still holding onto the aim of eventually eliminating the system.

Some FoC registers are better than others, but the very existence of the system creates a lack of transparency and accountability that lowers standards and harms seafarers