Panama flag, the owner of the world's favorite

As we all know, Panama is located in the hub of the unique geographical conditions, connecting the Pacific and Atlantic channel. 100 years, countless boats from here through, avoiding the distant and dangerous route around the Cape of Good Hope. 77 km long been known as one of the seven wonders of the Panama Canal, there are 14,000 ships every year from here.

While trade is not brilliant history of Panama, only a small shipping companies and some canals and port-related maritime services company, but many boats were walking between flying the Panamanian flag. Many merchant ships flying the Panamanian flag are foreign owners, in order to avoid more stringent national maritime regulations. Panama implemented is an open registration (open & nbsp; registry), to facilitate registration (often online registration), but also allow the owner can hire cheaper foreign labor, in addition to foreign shipowners also not have to pay income tax. About 8600 vessels flying the Panamanian flag, compared with vessels registered in the United States about 3400, China is about 3700.

Open registration

Under international law, every one merchant in a country must be registered in the country known as the "flag state", the country has jurisdiction on the ship, and is responsible for checking the safety of vessels, crew's working environment. Open registration is sometimes called "flags of convenience", the controversy surrounding it constantly.

Panamanian flag of convenience originated in 1922, there were two American passenger ships, in order to give guests the supply of wine in alcohol, it is registered in Panama. Since then, more shipowners in order to avoid high wages or better working conditions added to the ranks. After World War II, Panama registered ship faster growth, American shipowners in order to reduce costs, while the European shipowners in order to avoid high taxes. Some other countries have also added to the open registration in the past, during the Cold War, the United States the use of open registration in Liberia established a number of neutral fleet.

Panama ahead in this field, Liberia, Marshall Islands wool, followed by Hong Kong and Singapore breakdown. Last year, about three-quarters of the fleet are registered in other countries. Panamanian ship registration to bring huge profits, fees, services, its tax revenue for the country's economic contribution to $ 500 million.

Controversy

However, critics say, the system is easy to hide the identity of the owner, neglect of implementing regulations.

International Transport Workers' Federation (International & nbsp; Transport & nbsp; Workers & nbsp; Federation, referred to as the & nbsp; ITF) in Panama on behalf of Luis & nbsp; Fruto said that in order to get more registered ships, Panama neglect their duties. ITF period from 1958 launched a campaign against the "flag of convenience ship", & nbsp; think from a security standpoint, Panama stronger than some countries, but there are serious flaws in the regulation, accident investigation and crew assistance. ITF further investigation also showed some sailing certificate is bought with money. Under international law, the implementation of the national open registration need to check the ship, to ensure compliance with international regulations, and to investigate accidents and corruption.

Critics say Panama cut corners in fulfilling these responsibilities. Indeed, many ship accidents registered in Panama, & nbsp; however, the Secretary-General before the Panama Maritime Authority Carlos & nbsp; Gonzalez said that this is a numbers game, the largest number of ships in Panama, also the most natural accident.年 2000, ITF Secretary General David & nbsp; Cockroft spend $ 4,000 to buy a Panama mate certificate, which allows him to drive the boat, even though he did not skills and experience in this area.

Although Panama has repeatedly pledged to solve this problem, but the problem still exists. After the crew got found false certificate, Panama Maritime Bureau Roberto & nbsp; Linares 6 months of this year to resign. Judging from the commercial operation, Panama flag of convenience is a success, but the ITF said that the price paid is too high.

ITF believes that if the ban "flags of convenience" system, although would lead to higher costs, but will not affect the global economy. ITF Secretary General Jon & nbsp; Whitlow said, sailing prices will rise, because the market has been made free competition distorted.

Support people think flags of convenience, ITF's this idea obsolete, flags of convenience will continue. Former director of the Maritime Law Association of Panama Jazmina & nbsp; Rovi said that in the implementation of uniform standards, the union will be more effective, well this is better than banning open registration system.

Last month, the Panama Maritime regulators new power, whether new New Deal, Panama can tackle corruption, security and other long-standing problem, it remains to be seen.