Flags of convenience allow ship owners to register their ships in countries other than their home country to take advantage of lower costs. This provides advantages like reduced registration fees, taxes, and operating costs up to 27% lower through access to cheaper labor. However, it also creates disadvantages like difficulty identifying real ship owners, lack of safety policies for sailors, and use of older ships which can increase risks. Many ships register with Panama, Cyprus, and other open registry countries to save on expenses, though it comes at the cost of less oversight and accountability.

1. Flags of convenience
Group 6

2. Outline
• Definition
• Advantages
• Disadvantages

3. Definition
• Ship registered under the maritime laws of
a country which is not the home country of the
ship's owners.
Quotes from business dictionary

4. The Republic of Panama
“more than 5,700 ships flying the Panama flag”-2011
Source: http://www.panama-guide.com/index.php?topic=flagged

5. Advantages
 Low registration fee and tax cost
 Operating cost reduction
• Low wage
-“Operating costs for open registry ships are from 12-
27% lower than traditional registry fleets”
 Avoiding discrimination among nation
ARKO FlY (Mongolia)
Quote: http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/registships.html

6. Disadvantages
 Difficulty in identifying the real
ship-owner
 Lack of safety policies for sailors
 Usage of old or out of date ships

7. Disadvantages
 Usage of old or out of date International
ships Transport
Workers' The loss of ships
Federation
(ITF)’s- 2001
All of the world 99: ships
Panama 15
Cyprus 8
St. Vincent 8
Cambodia 7
Source: http://www.philippinestoday.net/ofwcorner/July03/ofw703_2.htm

8. Disadvantages

9. Summary
Definition Advantages Disadvantages

10. Thank for your listening