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What is flag of convenience?

Updated: 9/15/2023
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15y ago

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Historically a vessel on the high seas flew the flag of its country of origin. In the 20th century, such countries as the US imposed laws on shipping companies such as paying fair wages and maintaining safe working conditions that ship owners were callous enough to ignore. They could do that by registering their vessels in such countries as Liberia or Panama, which had no such restrictions on their greed. They flew the flag of the country of registry, and it was called a flag of convenience. Most of the merchant ships of the world flew flags of only about three countries like that.

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