Flag of Convenience

A Flag of Convenience (FoC) refers to the practice where shipowners register their vessels in a country different from their own, often for favorable regulatory, tax, or labor conditions. This means a ship can sail under the flag of a nation that may have more lenient laws regarding safety, wages, or environmental standards. While this can reduce costs for shipowners, it may raise concerns about accountability, safety, and workers' rights. Common FoC countries include Panama, Liberia, and the Marshall Islands, which attract a significant number of foreign ships due to their advantageous policies.