Problem

Flag discrimination in shipping

Other Names:
Preferential treatment of cargo shipping
Nature:
Flag discrimination consists of a wide variety of acts and pressures exerted by governments designed to direct cargoes to ships of the national flag, regardless of the commercial considerations which normally govern the routing of cargoes. Restrictions are either imposed on all foreign vessels or discriminate against ships which are registered in certain countries. Flag discrimination thus places impediments in the path of the free flow of international trade, disturbing trade between all countries and all sectors of the economy. Developing countries see the growing use of 'flags of convenience' by shipowners in developed countries as a substantial impediment to their efforts to expand their own merchant fleets.
Problem Type:
D: Detailed problems
Date of last update
09.02.1997 – 00:00 CET