What is another name for the Flag of Convenience?

The term "Flag of Convenience" refers to a practice where a ship registers under a foreign flag, often in a country with less stringent regulations, lower operational costs, or favorable tax treatments. This is typically done to reduce operating expenses and avoid stringent labor laws and safety regulations found in the ship owner's home country.

An "Open Registry" is synonymous with the Flag of Convenience, as it allows foreign shipowners to register their ships with the flag state without the need for the owners or ships to meet the local criteria (such as nationality requirements). This registration method provides flexibility and lower costs, which is why it is popular among operators looking to maximize profitability while minimizing regulatory burdens.

The other options do not accurately capture the essence of the Flag of Convenience. A "Hybrid Registry" suggests a mix of regulations that do not align with the typical characteristics of flags of convenience, while a "Closed Registry" means that only ships owned by the nationals of the flag state can register there, which is the opposite of what a Flag of Convenience entails. Lastly, "International Registry" is a vague term that does not specifically denote the characteristics associated with flags of convenience and could apply to any vessel that is registered under a flag recognized by multiple nations.