ABSTRACT
All ships are registered in a particular country and fly that country's flag. The laws of the flag country apply to the shipowner in all his operations and to the maintenance of law and order aboard the ship. The flags of convenience differ from other flags in the sense that they are basically open to anyone satisfying minimal conditions. Much of the opposition to flags of convenience comes from labor, who oppose both the loss of employment under domestic flags and the inferior social conditions made possible by open registry. The flag state should control and administer technical and social matters on the ships. Under the regulated flags, the flag-State has sovereign control of the ships. To make certain of that control there are strict conditions governing the registration, particularly with respect to nationality of owners and crew. Depending on the flag of registry, shipowners faced different cost conditions, which affected their international competitiveness.
