Flag state

Ships may be registered under flags of convenience to reduce operating costs, or else to avoid the regulations of, or inspection and scrutiny by, the country of the original owner.

Shipowners during this time needed protection from pirates and privateers which was provided by naval vessels of the flag state.

One well known example of how this was applied is the case of England, which restricted the import of Asian goods only to American and British vessels.

Ships of Russia’s shadow fleet, which transport sanctioned cargo, especially crude oil, frequently change their flag registrations.

According to a report of the Atlantic Council, the registration process is so permissive that virtually any vessel can register, even ones turned down by other flag-of-convenience states.

This relates to a main problem, which is that these countries refuse to or cannot take the action required of flag states if one of their vessels causes an accident or incident.