Flags of Convenience and Shadow Fleets

About Flags of Convenience (FoCs)

• FoC refers to the practice where shipowners register their vessels in a country different from where they are owned to avoid stricter regulations, higher taxes and labour laws.
• These countries are called flag states. They offer more lenient legal, regulatory and financial environments, allowing shipowners to operate with fewer restrictions.
• Common FOC Countries: Panama, Liberia, and the Marshall Islands are among the most popular flags of convenience.

About Shadow Fleets

• It refers to a group of tanker ships that operate covertly to transport commodities, especially oil, from sanctioned countries like Russia or Iran.
• These vessels hide their true ownership, destinations and cargo origins to evade international sanctions.

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