The shipping industry has grown 250% by registered deadweight tonnage since 2000, increasing from 800m DWT to over 2b DWT across over 60,000 vessels. It is expected another 50% in growth will occur between 2020-2030. 50% of the world’s ships are registered in Panama, Liberia and the Marshall Islands, with another 20% in Hong Kong, Singapore, and Malta.
Concerns around the lower inspection standards and environmental/human safety risks abound around Flags of Convenience.
Flag states have a huge influence on setting environmental standards in the IMO, and coupled with lax inspection standards, the regulators are enabling global subsidies of over US$500b per year for the oil industry.
For an extensive feature on the issues confronting the IMO and global shipping industry considering attribution of responsibilities for decarbonization, please visit the link below: