Flags of convenience are also referred to as cruise ship registration flags. They refer to the act of registering a ship in a country other than the owner’s country of residence. This is usually done to reduce operating costs and to avoid strict laws pertaining to taxes, labor and environmental regulations as well as safety regulations.
The Flag of Convenience signifies an open registry, which is a registry that does not have nationality or residency requirements. Shipowners can register their vessels in these countries and follow the laws of the registry. Some countries have stricter rules and they protect crewmembers.
Open registry can be advantageous to the company but has a lot of cons too. Ships flying flags of convenience are known for paying very low wages, providing poor working conditions, serving inadequate food and contaminated drinking water, and having terrible working conditions. They also hide criminal activities because it’s possible for the owner of the ship to hide his or her identity.
There is a long list of Flag of Convenience countries. However, the most common or popular are:
- Panama
- Liberia
- Marshall Islands
- Bahamas
- Malta
- Cyprus
When applying for a job on cruise ships, consider checking the flag of ship so as to have a glimpse of the working conditions according to the laws of the open registry. Read and understand your contact before signing it. Talk to people who have worked for that cruise line before.