WSC Urges Global Approach in FMC Flags of Convenience Inquiry

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  • FMC opened a 90-day public comment period on flagging practices in May 2025.
  • FMC urged to engage more closely with IMO and its committees.
  • WSC commends FMC for addressing fraudulent registries and safety concerns.

In May 2025, the Federal Maritime Commission (FMC) initiated a 90-day public comment period to gather feedback on certain troubling flagging laws, regulations, and practices. Just before the August 20 deadline, the World Shipping Council (WSC) submitted its official comments, praising the Commission for tackling the significant issues caused by vessels operating under fraudulent registries or by flag States that don’t meet international maritime safety and security standards, reports Safety4Sea.

Terminology Concerns

The WSC pointed out that while the FMC refers to “Flags of Convenience” (FOC), this term isn’t officially recognised by the global shipping industry, relevant UN bodies, or the United Nations Convention on the Law of the Sea (UNCLOS). They noted that many flag States, including the United States, permit the registration of vessels owned or operated by foreign entities, which makes the difference between “open registers” and so-called “traditional” or “national” flags feel increasingly arbitrary and less useful.

Recommendations to the FMC

In its recommendations, the WSC encouraged the FMC to collaborate closely with the U.S. Coast Guard (USCG) to combine existing authorities and boost enforcement efforts. They also advocated for expanding Port State Control (PSC) tools, highlighting the European Union’s Mandatory Ship Reporting System (MSRS), which requires vessels to provide proof of insurance to help reduce risks from non-compliant or “dark fleet” ships.

International Cooperation and RISC

The Council stressed the need for international cooperation through initiatives like the Registry Information Sharing Compact (RISC). This voluntary agreement among 15 flag registries covers over 20% of the world’s flagged vessels and nearly half of global gross tonnage. RISC promotes data sharing to help prevent sanctions evasion and abuses related to reflagging.

Role of Law Enforcement

The WSC has also urged U.S. law enforcement agencies, such as the FBI, Homeland Security Investigations, and INTERPOL, to step up their efforts in tackling fraudulent registries that issue documents without the necessary flag State authorisation.

Engagement with IMO

The Council suggested that the FMC should actively connect with the International Maritime Organisation (IMO), especially through its important committees and subcommittees. However, it also warned against any unilateral actions by the U.S. that might jeopardise wider global initiatives.

Call for Global Solutions

The WSC stressed that challenges such as dark fleet activity, flag-hopping, and registry abuse require international cooperation and binding IMO instruments. “WSC cautions against unilateral actions by the FMC to address perceived gaps in the international law of ship registration and operations, because unilateral actions would detract from the significant ongoing effort by the international community – a challenge to global shipping requires a global solution, WSC commented.

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Source: Safety4Sea