How many ships are registered by panama?

Answer 1

Many ships are registered in Panama, even though they are owned by individuals or companies in Another Country (most commonly Japan and Greece) under a system called 'flag of convenience'. Registering a ship in Panama means that the ship is governed by the maritime rules of Panama rather than the ship owner's country. Ship owners do this because Panama has low taxes and fewer labour and safety regulations than most other countries. So ship owners can make their staff work longer hours in less safe environments, and therefore maximise their profits. Other countries, including Liberia, Cyprus and the Bahamas also offer flags of convenience, but Panama has the most ships registered under the scheme.

Answer 2

Panama is a 'flag of convenience' which registers ships which may not ever visit Panama but it allows them to register a ship with lower fees than are charged by many other countries.

There are other advantages that allow the shipowners to reduce costs, like more relaxed regulations on crew numbers and qualifications required.

European countries operate an inspection policy on ships from dubious flags to make sure that the ships are seaworthy and that the crews have been fed and paid properly