In the aftermath of the financial crisis, flagging behaviour exhibits different features than before. The purpose of this paper is to examine the current ship registration situation and particularly the impact of the 2008 financial crisis on flagging behaviour in light of national characteristics.
The paper provides an overview of ship registration over the past 14 years and picks up new trends in the changing global economy. Moreover, a panel data analysis is applied to examine flagging in/out on a state by state basis.
The clear‐cut distinction between national registration and open registration has been diminishing and a convergence has been observed between the two flag types. The sovereignty of states creates a set of regulatory niches. The panel data results show that the flagging behaviour varies from nation to nation. A shipowner's view on choice of flag might be affected by national characteristics, and different continents and ship types tend to exert different influences on flagging out.
It is an oversimplification to assume the downfall of regulation and the rise of liberal deregulation, as different nations have different roles to play in this globalised maritime arena. At some point, an equilibrium may be established whereby the ratio of flagging out would reach a stable plateau within each nation.
This paper identifies the new features of ship registration after the financial crisis. Whereas flagging behaviour has been examined before from many different perspectives, this study approaches the issue from a macroeconomic viewpoint and further elucidates the impact of national states on the globalised phenomenon of the shipping world.
