Flag discrimination in shipping

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.

Background

In 1989, almost 40% of the world shipping fleet of just over 400 million tonnes was under flags which would not have been considered traditional a few decades ago; in particular the growth of the Russian and Chinese merchant fleets, and those of a number of developing countries, such as the Philippines, Brazil, Indonesia and India. However, the major sector of the world fleet is still registered in Liberia, Panama, the Bahamas and Cyprus.

Incidence

Flag discrimination in shipping remains a persistent issue affecting global maritime trade, with vessels registered under certain national flags facing unequal treatment in foreign ports. This manifests in the form of higher port dues, restricted access, or delayed clearances, disproportionately impacting ships from developing countries. Such practices undermine the principle of non-discrimination enshrined in international maritime conventions and hinder the efficient movement of goods worldwide.
In 2022, several African-flagged vessels reported discriminatory port charges and extended inspection times at major European ports, notably in Rotterdam and Antwerp. These incidents highlighted ongoing challenges despite international efforts to promote fair treatment of all ships, regardless of flag.

Claim

Flag discrimination in shipping is a deeply unjust and urgent problem that undermines the very foundation of international maritime law. By treating ships differently based solely on their flag, nations perpetuate unfair trade barriers, foster economic inequality, and threaten the safety and rights of seafarers. This blatant disregard for the principle of non-discrimination not only disrupts global commerce but also erodes trust and cooperation among nations. Immediate, decisive action is absolutely essential.